Morgan Hill city officials have approved a plan to build 105 single-family homes, moving the project forward despite reservations about state housing regulations. The City Council unanimously backed the development on Wednesday, following a recommendation from the Planning Commission just over a week prior.
The project is slated for a 15.8-acre site in Morgan Hill, located east of the U.S. Highway 101 Cochrane Road exit, alongside the western part of De Paul Drive and south of Cochrane Road.
Mayor Mark Turner expressed frustration with the state law known as builder’s remedy, which limited the city's ability to alter the project. Builder's remedy allows developers to bypass local restrictions on building height and density when cities lack state approval for their housing plans. Developer High Street Residential, a subsidiary of Trammell Crow Company, submitted its application in October 2023. Morgan Hill’s state-mandated housing plan was not certified until November 2023, allowing the builder’s remedy provision to apply.
Despite his displeasure with the mechanism, Mayor Turner noted some advantages, stating the homes are "single-family homes and not more high density (housing)." He also highlighted that the project includes more than 21,000 square feet of common open space and is situated near the Madrone Channel Trail, offering recreational opportunities for future residents. He described the situation as making the best of a challenging circumstance.
Local resident Armando Benavides echoed a pragmatic view, acknowledging the city's obligation to follow the law and noting that significant concessions were secured. He expressed that the city appeared to get the best possible outcome within the framework of the builder’s remedy law.
When completed, the High Street development will feature 105 market-rate, detached homes, each with two stories and a two-car garage. These homes will range in size from 2,147 to 2,615 square feet, with each including private open space like a yard, porch, or patio.
The developer initially requested a change from commercially-zoned land to residential for the site. The city reluctantly agreed to a partial rezoning through a settlement to avoid potentially costly and lengthy litigation with both the developer and the state. As part of this settlement, a roughly 28.5-acre parcel was divided into three sections: the 15.8-acre site for the 105 homes, a 7.8-acre parcel along Cochrane Road intended for a shopping center anchored by a Sprouts grocery store, and a 4.7-acre parcel designated for affordable housing. This affordable housing parcel will be transferred to the city, assisting Morgan Hill in meeting its state housing requirements. These housing components are situated between the Cochrane Technology Center and the planned shopping center, near another retail area with stores including Target.
Additionally, the developer agreed to contribute $500,000 to the city’s housing fund and pay a fee exceeding $5.8 million in place of providing affordable housing on site.
Morgan Hill is mandated by the state to plan for 1,037 homes by 2031, distributed across six income levels. Housing and Economic Mobility Director John Lang confirmed that Morgan Hill is currently 39 homes short of its overall goal, with more than four years remaining in the current housing cycle.
An environmental impact report for the project identified several significant, unavoidable impacts. These include the elimination of nearly 11 acres of farmland, changes to air quality that fall below Bay Area Air Quality District thresholds, and exceeding the city’s vehicle miles traveled per capita threshold by almost four miles. While mitigation plans are in place for these issues, the impacts are still expected to be present.
