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District One, which envisions hundreds of housing units as well as retail and commercial space near McCandless Drive and Great Mall Parkway, will be under city review next week. Courtesy of City of Milpitas

Milpitas City Council on Tuesday, Nov. 17 is to consider approving high-density housing and retail commercial projects near the Great Mall.

Up for review will be changes to three projects: the McCandless Drive proposal for 83,842 square feet of retail, a hotel with 175 rooms and a 423-residential unit building; a Centre Pointe Drive proposal for 241 units; and a Houret Drive proposal for 114 condominiums along Houret Drive and Houret Court.

Bill Ekern, the city’s interim planning director, said the developer is Newport Beach-based Lyon Communities.

He added that Lyon is currently constructing a project known as District One — located north of McCandless along Great Mall Parkway — which involves a 175-room hotel.

“They are still negotiating with hotels for the current project under consideration,” he said.

In addition, the District One project may see a grocery store anchor. Ekern said Lyon has not released the name of possible chains with whom it’s negotiating.

“It’s one of those ‘any day now’ discussions,” he added.

Similarly, Milpitas Economic Development Manager Edesa Bitbadal confirmed Lyon is working on a deal with “a reputable grocery store.”

“I know which one but I cannot disclose it either,” Bitbadal said. “However, I am personally pleased with the high quality of produce, variety and service it may bring to our city.”


Milpitas Planning Commission voted 5-0 on Oct. 28 to recommend the council approve a requested general plan amendment and a conditional use permit for these same projects.

According to Ekern, if the council approves the projects Tuesday, the developer may then sell the three project sites — two at Centre Pointe and one at Houret — to other for-sale housing developers.

“They intend to develop the other three lots as rental as well as all of the commercial and hotel product,” Ekern said. “They have two years to pull the trigger on the projects, though they can ask for a one-time extension of a year from the city. There are no timelines yet, but they intend to move quickly to meet market demand.”

The council meeting will begin 7 p.m. on Nov. 17 inside Milpitas City Hall’s Council Chambers, 455 E. Calaveras Blvd.