The Morgan Hill Planning Commission has unanimously recommended plans for a housing development that would bring 105 single-family homes to the South County city. The proposed project, located just east of the U.S. Highway 101 Cochrane Road exit, is now closer to breaking ground following the commission's Tuesday decision. High Street Residential, a subsidiary of Trammell Crow Company, is the developer behind the project, which intends to use a state law known as “builder’s remedy.”
If the Morgan Hill City Council approves the plans at a later date, the 15.8-acre site for the homes will move forward alongside an adjacent shopping center. This shopping center is projected to open in late 2027. The state law allowing for "builder's remedy" permits developments to proceed without adhering to local building height and density restrictions when local governments have not received state approval for their housing plans. High Street Residential submitted its application to the city in October 2023. Morgan Hill’s state-mandated housing plan was not certified until one month after this application, which allowed the developer to invoke the builder’s remedy provision. State mandates require Morgan Hill to plan for 1,037 homes by 2031, distributed across six different income levels.
The land for the project, originally zoned for commercial use and spanning approximately 28.5 acres, was subject to a request from High Street Residential to be rezoned for residential use. The city partially agreed to this rezoning reluctantly through a settlement agreement. City officials stated that they opted for this settlement to avoid potentially lengthy and costly litigation with both the developer and the state. Edith Ramirez, assistant city manager for development services, commented on the outcome, stating that “the city has gained overall is a project that is going to advance the city and is within the character of the city.” She added that the developer had acted as good partners throughout the process, listening to the community.
As part of the settlement, the 28.5-acre parcel was divided into three distinct pieces. The largest section is the 15.8-acre site designated for the 105 homes. A 7.8-acre parcel along Cochrane Road is earmarked for a shopping center, which will be anchored by a Sprouts grocery store. The third section is a 4.7-acre parcel intended for affordable housing, which will be transferred to the city. This transfer is expected to help Morgan Hill meet its state housing requirements. Both housing components of the project are situated between the Cochrane Technology Center and the planned shopping center. The location is also near another existing shopping center that includes a Target store.
In addition to transferring land for affordable housing, the developer agreed to contribute $500,000 to the city’s housing fund. The company also committed to paying a 15% fee in lieu of providing affordable housing directly within the 105-home project.
The High Street housing development will feature 105 market-rate, single-family homes. These detached homes are planned to be two-story structures, each including a two-car garage. They will range in size from 2,147 square feet to 2,615 square feet. Each home is designed to incorporate some private open space, which could include a yard, porch, and patio areas. Beyond the private spaces, the project will also offer more than 21,000 square feet of common open space for residents. Community amenities will include a fenced dog park and a park spanning more than a quarter-acre, complete with a covered picnic area and a children's play area. The development also plans for 158 on-street guest parking spaces.
An environmental impact report on the project identified several significant, unavoidable impacts. These include the elimination of nearly 11 acres of farmland and a change in air quality that would fall below Bay Area Air Quality District thresholds. The report also found that the project would exceed the city’s vehicle miles traveled per capita threshold of 26.4 miles by nearly four miles. While mitigation plans are in place for these issues, the report indicates that the impacts will still be present.
During the Planning Commission meeting, Brian Pianca, Northern California principal for High Street Residential, thanked staff for their work over the past three years, describing the process as a collaborative effort. He also noted that the company, which primarily develops rental properties, is still determining whether it will complete construction of the project or transfer it to another developer.
Commissioners generally did not have many questions or engage in extensive discussion about the project. This was reportedly due to their inability to question aspects related to the settlement agreement. However, Commissioner Steve Adamo voiced his dissatisfaction with the project, stating that he did not like its location, describing it as placing housing between a drone manufacturer and a commercial outlet. Despite his personal reservations, Commissioner Adamo followed the commission’s recommendation for approval.