A major transformation is on the horizon for the area surrounding Levi’s Stadium, as the Santa Clara City Council approved a zoning change critical to the progress of the long-planned Related Santa Clara development. The approval allows nearly 98 acres within the 240-acre project to shift from office use to light industrial, adjusting to changing market conditions and aligning with regional economic trends.
In a 4-3 vote, councilmembers granted the general plan amendment during a recent meeting, setting a new direction for one of the city’s most ambitious mixed-use developments. Mayor Lisa Gillmor joined Councilmembers Kelly Cox, Albert Gonzalez, and Karen Hardy in supporting the change, while Councilmembers Raj Chahal, Suds Jain, and Kevin Park opposed it. The zoning shift primarily affects parcels 1 and 2 of the project, located east of Lafayette Street, while the rest of the development, including the proposed city center, remains dedicated to retail, housing, and office space.
Developers from Related California, the firm behind the project, cited low demand for traditional office space as the primary reason for the shift. They indicated that the commercial real estate market has not recovered to pre-pandemic norms, with office vacancies remaining at historically high levels and regional return-to-office rates still among the slowest nationwide. Instead, the company is seeing rising interest in research and light industrial uses, including R&D facilities. According to Related California’s Chief Operating Officer Nick Vanderboom, the project still envisions a vibrant mixed-use urban center, but with industrial activity incorporated in the northeastern campus to reflect evolving demand.
The entire development is located across Tasman Drive from Levi’s Stadium and is expected to create a new community from the ground up. Plans include the construction of 1,680 housing units and 800,000 square feet of commercial space for retail, dining, and entertainment. The centerpiece, the five-million-square-foot city center in parcel 4, will house the bulk of the project’s commercial and residential activity, contributing to a new urban hub in northern Santa Clara.
Though the vote cleared a key hurdle for Related Santa Clara, opinions remain divided. Councilmember Albert Gonzalez, whose district includes the development area, praised the project’s potential to bring long-overdue amenities to his community. He noted that the northern part of the city has long been a food desert, and while the arrival of a Safeway in the Rivermark area offered some relief, additional retail and food options are still critically needed to match the pace of housing development. Gonzalez expressed hope that the approval would pave the way for construction to begin and said the project could help balance the rapid residential growth with essential services.
Councilmember Raj Chahal, however, expressed concerns that the city was granting the developer significant benefits without receiving adequate commitments in return. He pointed to the project's long-term lease agreement—Related holds a 99-year ground lease—and argued that the deal did not adequately support Santa Clara’s Climate Action Plan. Of particular concern to him was the possibility that the light industrial zoning could pave the way for data centers without the carbon-free requirements mandated by city policy.
Chahal highlighted the inconsistency of allowing such development while the city simultaneously promotes sustainability goals. Councilmember Jain attempted to address this by proposing an amendment requiring any future data centers built under the new zoning be fully clean-energy compliant. However, the motion did not pass, leaving those protections out of the current agreement.
The decision marks the first time in about a year that the city council has formally addressed the nearly decade-old Related Santa Clara project, which has gone through numerous revisions since its inception. Despite mixed reactions, the zoning change signals momentum for a project that aims to reshape the city’s northern landscape with a new mix of housing, employment, and commercial destinations.
As the project proceeds, the community and council will continue to monitor its impact on infrastructure, sustainability goals, and economic benefits. With Santa Clara’s rapid growth and increasing housing density, the hope among supporters is that this development will serve as a much-needed catalyst for balanced urban expansion.
