On the agenda: Campbell meeting — AI data center (Mar 10)

Planning Commission
REGULAR MEETING AGENDA
Tuesday, March 10, 2026 | 7:00 PM
City Hall Council Chamber – 70 N. First Street
CALL TO ORDER / ROLL CALL
This Planning Commission meeting will be conducted in person and virtually via video
teleconferencing (Zoom) in compliance with the provisions of the Brown Act. A quorum of the
Planning Commission will be in attendance at the city of Campbell City Hall. Members of the
public may attend this meeting in person at Campbell City Hall or virtually via Zoom at
https://campbellca.gov/PCSignup. The meeting will also be live streamed on Channel 26, the
City's website, and on YouTube at https://www.youtube.com/@CityofCampbell.
Written correspondence will be accepted via email at [email protected] until 12:00 PM
on the day of the meeting, and thereafter may be delivered in-person at the public hearing.
Written correspondence will be posted to the City’s website and distributed to the Planning
Commission. If you choose to email your comments, please indicate in the subject line “FOR
PUBLIC COMMENT” and indicate the item number.
Members of the public may be allotted up to two (2) minutes to comment on any public hearing
or study session item. Applicants/Appellants and their representatives may be allotted up to a
total of five (5) minutes for opening statements and up to a total of three (3) minutes maximum
for closing statements. Items requested/recommended for continuance are subject to Planning
Commission’s consent at the meeting.
APPROVAL OF MINUTES
1.

Approval of Minutes of February 24, 2026 (Roll Call Vote)
Recommended Action: That the Planning Commission approve the regular meeting
minutes of February 24, 2026.

COMMUNICATIONS
AGENDA MODIFICATIONS OR POSTPONEMENTS
ORAL COMMUNICATIONS
This portion of the meeting is reserved for individuals wishing to address the Planning
Commission on matters of community concern that are not listed on the agenda. In the interest
of time, the Chair may limit speakers to five minutes. Please be aware that State law prohibits
the Commission from acting on non-agendized items, however, the Chair may refer matters to
staff for follow-up.

Planning Commission Agenda for March 10, 2026

Pg. 2

PUBLIC HEARING
2.

278 E Campbell Avenue – Conditional Use Permit (Resolution/Roll Call Vote)
Public Hearing to consider the application of Fatih Ulas to allow the on-site sale of beer
and wine in association with a quick service restaurant (dba Sultan's Kebab) on property
located at 278 E Campbell Avenue. The application under consideration includes a
Conditional Use Permit. File No.: PLN-2026-19. Staff recommends that this item be
deemed categorically exempt from CEQA. Planning Commission action is final unless
appealed in writing to the City Clerk within 10 calendar days. Project Planner: Daniel
Fama, Senior Planner.
Recommended Action: Adopt a Resolution, approving a Conditional Use Permit

STUDY SESSION
Note: A study session meeting of the Planning Commission is held to discuss specific planning
topics or preliminary development proposals. No formal action or decision may be made by the
Planning Commission.
3.

Economic Development Study Session
Economic Development Study Session, including an overview of Campbell’s Economic
Development Plan and current economic conditions. Project Manager: Nathan DonatoWeinstein, Economic Development Manager

NEW BUSINESS
4.

Planning Commissioner / Subcommittee Reports

5.

Report of the Community Development Director

ADJOURNMENT
Adjourn to the Planning Commission meeting of April 14, 2026, at 7:00 PM, in the City Hall Council
Chambers, 70 North First Street, Campbell, California and via telecommunication

Americans with Disabilities Act (ADA)
In compliance with the Americans with Disabilities Act, listening assistance devices are available
for meetings held in the Council Chambers. If you require accommodation to participate in the
meeting, please contact the City Clerk’s Office at [email protected] or 408-866-2117
in advance of the meeting.

PLANNING COMMISSION
REGULAR MEETING MINUTES
Tuesday, February 24, 2026 I 7:00pm
City Hall Council Chamber

CALL TO ORDER
The Regular Planning Commission meeting of February 24, 2026, was called to order at 7:00 pm by
Chair Kamkar, and the following proceedings were followed
ROLL CALL
Planning Commissioners Present:
Davis Fields, Chair
Gary Aquilina, Vice Chair
Matt Kamkar
Adam Buchbinder
Alan Zisser
Phil Alne

Planning Commissioners Absent:

Staff Present:
Victoria Thompson, City Attorney’s Office
Rob Eastwood, Director
Daniel Fama, Senior Planner
Roger Storz, Senior Civil Engineer
COMMUNICATIONS
None.
AGENDA MODIFICATIONS OR POSTPONEMENTS
None.
ORAL COMMUNICATIONS
This portion of the meeting is reserved for individuals wishing to address the Planning
Commission on matters of community concern that are not listed on the agenda. In the interest
of time, the Chair may limit speakers to five minutes. Please be aware that State law prohibits the

Campbell Planning Commission
Meeting Minutes – February 24, 2026

Page 2 of 4

Commission from acting on non-agendized items, however, the Chair may refer matters to staff
for follow-up.
APPROVAL OF MINUTES
1.

Approval of Minutes of February 10, 2026 (Roll Call Vote)
Recommended Action: That the Planning Commission approve the regular meeting
minutes of February 10, 2026.
Motion:

Upon motion by Commissioner, seconded by Commissioner, the Planning
Commission motioned to approve the regular meeting minutes of February
10, 2026, by the following roll call

AYES:
NOES:
ABSTAIN:
ABSENT:

Zisser, Alne, Buchbinder, Aquilina, Fields, Kamkar
None
None
None

COMMUNICATIONS
AGENDA MODIFICATIONS OR POSTPONEMENTS
ORAL COMMUNICATIONS
This portion of the meeting is reserved for individuals wishing to address the Planning Commission on matters of
community concern that are not listed on the agenda. In the interest of time, the Chair may limit speakers to five
minutes. Please be aware that State law prohibits the Commission from acting on non-agendized items, however, the
Chair may refer matters to staff for follow-up.

PUBLIC HEARING
Disclosures: Commissioners have visited site and know of area and site.
2.

750 E. McGlincy Ln., Ste. 102. – Conditional Use Permit (Resolution/Roll Call Vote)
Public Hearing to consider the application of CUONG TRINH, PHARM.D., Inc., dba Wellness
Pharmacy to allow ancillary retail (pharmacy) sales serving a pharmaceutical compounding
and prescription fulfillment laboratory, on property located at 750 E. McGlincy Ln., Ste.
102. The application under consideration includes a Conditional Use Permit. File No.: PLN2025-172. Staff recommends that this item be deemed categorically exempt from CEQA.
Planning Commission action is final unless appealed in writing to the City Clerk within 10
calendar days. Project Planner: Daniel Fama, Senior Planner.
Recommended Action: Adopt a Resolution, approving a Conditional Use Permit.

Campbell Planning Commission
Meeting Minutes – February 24, 2026

Page 3 of 4

Senior Planner Daniel Fama presented presentation to allow ancillary retail (pharmacy)
sales serving a pharmaceutical compounding and prescription fulfillment laboratory, on
property located at 750 E. McGlincy Ln., Ste. 102.
Commissioners were informed that a routine Conditional Use Permit takes about 10 hours
of staff time across several departments to complete and there is sufficient parking for
operational needs on site to meet business needs. Also received clarification as to why the
application required a Conditional Use Permit.
Applicant spoke and stated that the facility assists with fulfilling orders throughout the
state and that the process for compounding the non-sterile products meets requirements
from the state board of pharmacy.
Commissioners received clarification and information regarding the sterilization process
of products sold and safety requirements regarding fumes from chemicals.
Chair opened public hearing and hearing no requests to provide public comment, closed
public hearing.
Commission expressed support of application and wished the applicant much success.

Motion:

Upon motion by Commissioner Zisser, seconded by Commissioner
Aquilina, the Planning Commission motioned to approve a Conditional Use
Permit to allow establishment of a pharmaceutical Compounding and
Prescription Fulfillment Laboratory with ancillary retail (Pharmacy) sales,
on property located at 750 E. McGlincy Ln., #102. File No.: PLN-2025-172.,
by the following roll call:

AYES:
NOES:
ABSTAIN:
ABSENT:

Zisser, Alne, Buchbinder, Aquilina, Fields, Kamkar
None
None
None

NEW BUSINESS
3.

Planning Commissioner / Subcommittee Reports
Subcommittees will return in an upcoming meeting to provide more robust updates.

4.

Report of the Community Development Director
Director Eastwood provided the following updates:
• City has extended moratorium on not allowing smoke shops.
• Department is conducting a Building Inspector recruitment.

Campbell Planning Commission
Meeting Minutes – February 24, 2026

Page 4 of 4

• City Council has been forwarded Public Outreach report from previous Planning
Commission subcommittee.
• Economic Development Manager will attend and present at an upcoming Planning
Commission meeting.
• There is a calendar conflict for the next scheduled meeting of March 24, 2026, a
special meeting will be tentatively scheduled for March 31, 2026.

ADJOURNMENT
Adjourned Planning Commission at 8:45pm to the Planning Commission meeting of March 31,
2026, at 7:00 PM, in the City Hall Council Chambers, 70 North First Street, Campbell, California and
via telecommunication
Americans with Disabilities Act (ADA)
In compliance with the Americans with Disabilities Act, listening assistance devices are available
for meetings held in the Council Chambers. If you require accommodation to participate in the
meeting, please contact the City Clerk’s Office at [email protected] or 408-866-2117 in
advance of the meeting.

PREPARED BY: _______________________________
Ken Ramirez, Administrative Analyst

APPROVED:

______________________________
Davis Fields, Chair

ATTEST:

________________________________
Rob Eastwood, Secretary

ITEM NO. 2
CITY OF CAMPBELL ∙ PLANNING COMMISSION
Staff Report ∙ March 10, 2026
PLN-2026-19
Ulas, F.

Public Hearing to consider the application of Fatih Ulas to allow the on-site
sale of beer and wine in association with a quick service restaurant (dba
Sultan's Kebab) on property located at 278 E Campbell Avenue. The
application under consideration includes a Conditional Use Permit. File No.:
PLN-2026-19.

STAFF RECOMMENDATION
That the Planning Commission take the following action:
1. Adopt a Resolution (reference Attachment A), approving a Conditional Use Permit to allow the
on-site sale of beer and wine in association with a quick service restaurant (dba Sultan's Kebab).
ENVIRONMENTAL (CEQA) DETERMINATION
Staff recommends that the Planning Commission accept the determination that this project is
Categorically Exempt under Section 15301 of the California Environmental Quality Act (CEQA)
Guidelines, pertaining to the operation, repair, maintenance, permitting, leasing, licensing, or minor
alteration of an existing private structure.
PROJECT DATA
Zoning Designation:

CB-MU (Central Business Mixed-Use)

General Plan Designation:

Central Business Mixed-Use

Total Building Area:

21,000 square feet

Tenant Space Square Footage: 2,058 square feet
Hours of Operation:

6:00 AM to 11:00 PM, daily

DISCUSSION
Project Site: The project site is developed with an approximately 21,000 square-foot, three-story
commercial building located in Downtown Campbell at the southeast corner of East Campbell Avenue
and South First Street. The site was developed in two phases, with the initial construction approved in
2011 and a major expansion approved in 2017. The property is located within the Central Business
Mixed-Use General Plan land use designation and the corresponding CB-MU Zoning District. It abuts
a commercial building to the east and a public parking lot to the south, as shown on the aerial map on
the following page. The building contains three ground-floor restaurant spaces, including Willard Hicks
and the former OPA and Mo’s restaurant spaces, the latter of which is the tenant space subject to this
application.

Staff Report – Planning Commission Meeting of March 10, 2026
PLN-2026-19 ~ 278 E Campbell Avenue

Page 2 of 5

S 1st Street

Civic Center Drive

Campbell Avenue

Orchard City Drive

Proposed Project: The applicant requests approval of a Conditional Use Permit to allow on-site beer
and wine service in conjunction with a new quick service restaurant, Sultan’s Kebab. As proposed,
Sultan’s Kebab will operate as a quick service restaurant, with food ordered at the counter and limited
table service. The request for alcohol service is limited to beer and wine for on-site consumption only
and is accessory to the primary restaurant use. The restaurant would close to the public at 10:00 PM,
daily. No exterior expansion or building modifications are proposed as part of this application.
ANALYSIS
Findings for Approval: To grant a land use approval, the decision-making body must affirmatively
establish that the project meets codified findings for approval. Findings establish the evidentiary basis
for a City's decision to grant or deny a land use approval and to impose conditions of approval as
necessary to establish the findings. The applicable findings depend upon the type of land use approval
under review. This application requires establishment of findings for a Conditional Use Permit and
special findings for the requested beer and wine service. The following analysis identifies each of the
applicable findings in italics and how the proposed project satisfies them.
Conditional Use Permit Findings (CMC Sec. 21.46.040): These findings pertain to the proposed
quick service restaurant use with ancillary alcohol service:
A. The proposed use is allowed within the applicable zoning district with Conditional Use Permit
approval, and complies with all other applicable provisions of this Zoning Code and the
Campbell Municipal Code;
Yes. The proposal involves two related land use classifications under the Campbell Municipal
Code; a quick service restaurant and ancillary on-site alcohol sales. In the CB-MU Zoning
District, a quick service restaurant is classified within the broader category of "pedestrian-

Staff Report – Planning Commission Meeting of March 10, 2026
PLN-2026-19 ~ 278 E Campbell Avenue

Page 3 of 5

oriented activities," which are permitted uses intended to promote active, engaging commercial
activity in the Downtown.
However, the proposal includes beer and wine service for on-site consumption. In the CB-MU
Zoning District, a restaurant may provide beer and wine without a Conditional Use Permit only
if it qualifies as a "full service" restaurant, generally characterized by table service provided by
waitstaff, a limited proportion of take-out orders, and the absence of a dedicated food pick-up
area. The prior tenant, Mo’s Breakfast Joint, operated in this manner and therefore did not
require a Conditional Use Permit for beer and wine service.
In contrast, Sultan’s Kebab is proposed to operate as a quick service restaurant, with most orders
placed at a counter and a substantial portion of business consisting of take-out transactions.
Because it does not meet the Code’s characteristics of a full service restaurant, beer and wine
service requires approval of a Conditional Use Permit
The alcohol component is classified as ancillary on-site alcohol sales pursuant to CMC Section
21.36.145, as it is limited to beer and wine for on-site consumption, no separate bar area is
proposed, and food will be served during all hours of operation. Accordingly, the alcohol
service is treated as ancillary to the restaurant use and is subject to Conditional Use Permit
review, but involves a lower degree of discretion than a primary on-site alcohol sales
establishment.
B. The proposed use is consistent with the General Plan;
Yes. Allowing ancillary beer and wine service in conjunction with a new restaurant supports
the purpose of the Central Business Mixed-Use designation by reinforcing active, pedestrianoriented uses in the Downtown. The project advances Policy LU-1.10 by expanding dining
options that provide goods, services, and entertainment to residents and visitors, and supports
Policies LU-5.2 and LU-5.4 by contributing to a vibrant, pedestrian-oriented East Campbell
Avenue with a balanced mix of daytime and evening activity. The proposal is consistent with
Policy LU-5.6 because alcohol service is limited, ancillary to a restaurant use, and subject to
Conditional Use Permit review in accordance with the Downtown Alcohol Beverage Policy (as
discussed, below). The project also furthers Policy ED-6.2 by strengthening Downtown’s role
as a focal point for dining and entertainment activity.
Policy LU-1.10

Maintain a variety of attractive and convenient commercial and office uses that provide
needed goods, services, and entertainment for residents and visitors.

Policy LU-5.2:

Maintain East Campbell Avenue as a pedestrian-oriented street.

Policy LU-5.4:

Encourage restaurant and specialty retail uses in the Downtown commercial area that
will foster a balance of day and evening activity.

Policy LU-5.6:

Continue to implement the Downtown Alcohol Beverage Policy.

Policy ED-6.2:

Position Downtown as the local focal point for fine dining, arts, culture, history,
entertainment, and boutique retail activity.

C. The proposed site is adequate in terms of size and shape to accommodate the fences and walls,
landscaping, parking and loading facilities, yards, and other development features required in
order to integrate the use with uses in the surrounding area;

Staff Report – Planning Commission Meeting of March 10, 2026
PLN-2026-19 ~ 278 E Campbell Avenue

Page 4 of 5

Yes. The subject tenant space has been fully developed and operated as a restaurant for over a
decade within a building that was purpose-built for ground-floor restaurant use. As such, the
property’s existing site layout adequately accommodates building access, deliveries, refuse
collection, and other operational needs.
D. The proposed site is adequately served by streets of sufficient capacity to carry the kind and
quantity of traffic the use would be expected to generate;
Yes. The project involves the continued use of a long-established restaurant tenant space and
will not introduce new activities that would substantially increase vehicle trips or traffic
volumes in the surrounding area. Downtown Campbell’s streets, parking supply, and
transportation facilities adequately accommodate the anticipated use of the property.
E. The design, location, size, and operating characteristics of the proposed use are compatible
with the existing and future land uses on-site and in the vicinity of the subject property; and
Yes. A restaurant with regular dining hours and subject to standard operational limitations is
compatible with the surrounding commercial uses, including other restaurants, personal
services, and professional offices. The provision of outdoor seating is similarly consistent with
and compatible with the established urban pattern of Downtown Campbell.
F. The establishment, maintenance, or operation of the proposed use at the location proposed will
not be detrimental to the comfort, health, morals, peace, safety, or general welfare of persons
residing or working in the neighborhood of the proposed use, or be detrimental or injurious to
property and improvements in the neighborhood or to the general welfare of the city.
Yes. The project involves the continued operation of a restaurant use within an established
Downtown commercial setting. There have been no recent complaints associated with the prior
operation of the tenant space, and the recommended Conditions of Approval establish clear
performance standards for noise, hours of operation, and alcohol service. The Conditions also
include enforcement provisions that allow the City to modify or revoke the permit if operational
issues arise. As conditioned, the establishment will operate in a manner that is compatible with
surrounding residential and commercial uses and will not adversely affect nearby properties or
the general welfare of the community.
Special findings for Ancillary Onsite Alcohol Sales (CMC Sec. 21.46.145). In addition to the
required findings for a Conditional Use Permit, CMC Sec. 21.46.145 also requires the Planning
Commission to affirmatively establish two special findings for ancillary onsite alcohol sales uses, listed
in italics below:
1. Not increase demand on services. The establishment will not significantly increase the
demand on City services; and
Yes. As discussed below, the proposal is consistent with the Downtown Alcohol Beverage
Policy, in that the restaurant will maintain alcoholic beverage service as an ancillary element
to food service. As such, it is not foreseeable that operation of the proposed restaurant will
result in additional demand on City services, including Police, Planning, Environmental
Management, or Code Enforcement services.

Staff Report – Planning Commission Meeting of March 10, 2026
PLN-2026-19 ~ 278 E Campbell Avenue

Page 5 of 5

2. Downtown Alcohol Beverage Policy. The establishment would be consistent with the
Downtown Alcohol Beverage Policy, when applicable.
Yes. The Downtown Alcohol Beverage Policy ("Policy") is an implementation tool of the
Campbell General Plan and Downtown Development Plan that regulates the operational
characteristics of alcohol-serving restaurants. The Policy is intended to ensure that alcohol
service remains ancillary and subordinate to the primary purpose of serving food, such that
restaurants do not evolve into bars or nightclubs. For restaurants without separate bar areas,
the Policy requires provision of a menu offering bona fide meal service (a combination of
food items intended to serve as meals for breakfast, lunch, or dinner), rather than only snack
or appetizer items. As noted on the applicant’s website, the operator’s other locations
provide a wide variety of food items that satisfy this requirement.
The Policy also requires that alcohol be served only in conjunction with food service, that
the establishment close no later than 12:00 a.m. (with outdoor seating ending at 11:00 p.m.),
that windows and doors be closed by 10:00 p.m., and that any live entertainment, if
approved, be complementary to the primary purpose of providing meal service. These
operational requirements have been incorporated into the project’s Conditions of Approval
to ensure continued compliance with the Downtown Alcohol Beverage Policy.
Public Comment: No public comment has been received.
Attachments:
A. Draft Resolution
B. Project Plans
C. Project Description

Prepared by:
Daniel Fama, Senior Planner

Approved by:
Rob Eastwood, Community Development Director

RESOLUTION NO. 2026-xx
BEING A RESOLUTION OF THE PLANNING COMMISSION OF
THE CITY OF CAMPBELL GRANTING APPROVAL OF A
CONDITIONAL USE PERMIT TO ALLOW ANCILLARY ONSITE
ALCOHOL SALES IN CONJUNCTION WITH A PEDESTRIANORIENTED ACTIVITY OPERATING AS A QUICK SERVICE
RESTAURANT WITH OUTDOOR SEATING, ON PROPERTY
LOCATED AT 278 E CAMPBELL AVENUE. FILE NO.: PLN2026-19
After notification and public hearing, as specified by law and after presentation by the
Community Development Director, proponents and opponents, the hearing was closed.
The Planning Commission did find as follows with regard to application PLN-2026-19:
1.

The Project Site is developed with an approximately 21,000 square-foot three-story
commercial building located in Downtown Campbell at the southeast corner of East
Campbell Avenue and South First Street. The building contains three ground-floor
restaurant spaces, including Willard Hicks and the former OPA and Mo’s restaurant
spaces, the latter of which is the tenant space subject to this application.

2.

The Project Site is within the Central Business Mixed-Use General Plan land use
district and the corresponding CB-MU Zoning District.

3.

The Proposed Project is an application for a Conditional Use Permit to allow
ancillary onsite alcohol sales in conjunction with a pedestrian-oriented activity
operating as a quick service restaurant with outdoor seating.

4.

A quick service restaurant with ancillary on-site beer and wine service is allowed in
the CB-MU (Central Business Mixed-Use) Zoning District subject to approval of a
Conditional Use Permit. However, pursuant to CMC Section 21.36.145, the alcohol
component is classified as ancillary on-site alcohol sales, since it is limited to beer
and wine for on-site consumption, no separate bar area is proposed, and food will
be served during all hours of operation.

5.

Policies found within the Campbell General Plan and Downtown Campbell
Development Plan articulate a desire to promote and enhance a downtown
environment that provides a desirable balance of land uses including shopping,
services, and entertainment. This vision is evidenced in policies that encourage a
mix of day and evening activities, a distinctive retail presence, a diversity of eating
establishments, support for neighborhood-serving businesses, and protection of
surrounding residential neighborhoods.

6.

The City Council adopted the 'Downtown Alcohol Beverage Policy', consistent with
the goals and strategies of the Campbell General Plan and Downtown Development
Plan. The Policy is intended to balance the health and safety of the community while
still maintaining the commercial viability of the downtown in which restaurants have
an essential role.

Planning Commission Resolution No. 2026-xx
PLN-2026-19 ~ 278 E Campbell Avenue

Page 2 of 3

7.

Conformance to the provisions of the Downtown Alcohol Beverage Policy is the
basis by which the City reviews new and modified applications for alcohol beverage
service. The Policy sets forth limitations to the hours of operation, amount of bar
area seating, and alcohol beverage service that are necessary to protect the public
health, safety and welfare. The Downtown Alcohol Beverage Policy strongly
recommends that Conditional Use Permits for establishments for on-site
consumption of alcohol beverages be limited to a closing time of no later than 12:00
AM.

8.

A public closing time of 11:00 PM for the restaurant is appropriate to ensure that
alcohol service remains ancillary to food service and therefore would not result in
an overconcentration of alcohol-serving (liquor) establishments.

9.

The over-concentration of late-night alcohol serving establishments within a
compact downtown district can create a cumulative impact that overwhelms the
area creating an undesirable result such as public intoxication, vandalism, and
disorderly conduct.

10.

In review of the proposed project, the Planning Commission also weighed the public
need for, and the benefit to be derived from, the project, against any impacts it may
cause.

11.

There is a reasonable relationship and a rough proportionality between the
Conditions of Approval and the impacts of the project.

12.

No substantial evidence has been presented from which a reasonable argument
could be made that shows that the project, as currently presented and subject to
the required conditions of approval, will have a significant adverse impact on the
environment.

Based upon the foregoing findings of fact, the Planning Commission further finds and
concludes that:
Conditional Use Permit Findings (CMC Sec. 21.46.040):
1.

The proposed use is allowed within the applicable zoning district with Conditional Use
Permit approval, and complies with all other applicable provisions of this Zoning Code
and the Campbell Municipal Code;

2.

The proposed use is consistent with the General Plan;

3.

The proposed site is adequate in terms of size and shape to accommodate the fences
and walls, landscaping, parking and loading facilities, yards, and other development
features required in order to integrate the use with uses in the surrounding area;

4.

The proposed site is adequately served by streets of sufficient capacity to carry the
kind and quantity of traffic the use would be expected to generate;

5.

The design, location, size, and operating characteristics of the proposed use are
compatible with the existing and future land uses on-site and in the vicinity of the
subject property;

Planning Commission Resolution No. 2026-xx
PLN-2026-19 ~ 278 E Campbell Avenue
6.

Page 3 of 3

The establishment, maintenance, or operation of the proposed use at the location
proposed will not be detrimental to the comfort, health, morals, peace, safety, or
general welfare of persons residing or working in the neighborhood of the proposed
use, or be detrimental or injurious to property and improvements in the neighborhood
or to the general welfare of the city;

Onsite Alcohol Sales Special Finding(s) (CMC Sec. 21.46.145):
7.

The establishment will not significantly increase the demand on City services; an

8.

The establishment will be consistent with the Downtown Alcohol Beverage Policy.

Environmental Finding(s) (CMC Sec. 21.38.050):
9.

The project is Categorically Exempt under Section 15301 (Class 1) of the California
Environmental Quality Act (CEQA), pertaining to the operation and leasing, and minor
alteration of an existing private structure; and

10. No substantial evidence has been presented which shows that the project, as
currently presented and subject to the required conditions of approval, will have a
significant adverse impact on the environment.
THEREFORE, BE IT RESOLVED that the Planning Commission grants a Conditional Use
Permit (PLN-2026-19) to allow ancillary onsite alcohol sales in conjunction with a
pedestrian-oriented activity operating as a quick service restaurant with outdoor seating,
on property located at 278 E Campbell Avenue, subject to the attached Conditions of
Approval (Exhibit A).
PASSED AND ADOPTED this 10th day of March, 2026, by the following roll call vote:
AYES:
Commissioners:
NOES:
Commissioners:
ABSENT: Commissioners:
ABSTAIN: Commissioners:
APPROVED:
Davis Fields, Chair
ATTEST:
Rob Eastwood, Secretary

EXHIBIT A
CONDITIONS OF APPROVAL
Conditional Use Permit
(PLN-2026-19)
Where approval by the Director of Community Development, City Engineer, Public Works
Director, City Attorney or Fire Department is required, that review shall be for compliance
with all applicable conditions of approval, adopted policies and guidelines, ordinances,
laws and regulations and accepted engineering practices for the item under review.
Additionally, the applicant is hereby notified that he/she is required to comply with all
applicable Codes or Ordinances of the City of Campbell and the State of California that
pertain to this development and are not herein specified.
1. Approved Project: Approval is granted for a Conditional Use Permit to allow ancillary
onsite alcohol sales in conjunction with a pedestrian-oriented activity operating as a
quick service restaurant with outdoor seating, on property located at 278 E Campbell
Avenue. The project shall substantially conform to the Approved Project Plans
included as Attachment C in the March 10, 2026, Planning Commission Staff Report,
except as may be modified by Conditions of Approval contained herein.
2. Approval Establishment / Expiration: Approval of the Conditional Use Permit
("Approval") shall be valid for one (1) year from the effective date of the Planning
Commission action. Within this one-year period, a license from the Department of
Alcoholic Beverage Control (ABC) must be secured. Failure to meet this deadline shall
result in the Approval being rendered void. Once established, this Approval shall be
valid in perpetuity on the Project Site, subject to continued maintenance of an ABC
license, as provided for in Condition of Approval No. 5.g (Liquor License).
Discontinuation of alcohol service for a continuous period of twelve months, as
evidenced by surrender or revocation of the ABC license, shall void the Approval upon
an affirmative determination by the Planning Commission in a public hearing that the
use has been discontinued.
3. Signage: No signage has been approved as part of this development application. New
signage shall not be installed prior to approval of a Sign Permit consistent with the
signage standards for the Central Business Mixed-Use (CB-MU) Zoning District.
4. Special Events: The Community Development Director may allow special events
through consideration of a Temporary Use Permit application in compliance with
Chapter 21.45 of the Campbell Municipal Code, even if such events would otherwise
conflict with the Conditions of Approval provided herein.
5. Operational Standards: Consistent with the Downtown Alcohol Beverage Policy and
other City standards, any restaurant operating pursuant to the Conditional Use Permit
approved herein shall conform to the following operational standards.
a. Approved Use: The approved use is a “pedestrian-oriented activity” operating as
a “restaurant, quick service” with outdoor seating and "ancillary on-site alcohol
sales", as defined in CMC Section 21.72.020 in effect at the time of approval, and
as further limited by the operational standards set forth herein. This approval may
also be exercised by a "restaurant, full service". At no time shall the approved use
be operated as a stand-alone bar or other primary on-site alcohol sales use.

Exhibit A – Conditions of Approval
PLN-2026-19 ~ 278 Campbell Avenue

Page 2 of 6

b. Restaurant Seating/Patron Occupancy: Total indoor patron occupancy shall be
limited subject to the maximum occupancy capacities of certain rooms as
determined by the California Building Code (CBC). It is the responsibility of the
establishment owner to provide adequate entrance controls to ensure that patron
occupancy is not exceeded.
c. Bar Area: No bar area, as defined by the CMC Section 21.36.145, is permitted in
association with the restaurant. The dining counter is part of the restaurant's
dining area and shall not be considered a bar.
d. Maximum Occupancy Sign: A maximum occupancy sign shall be conspicuously
posted within the establishment, which shall include the maximum seated
occupancy and include a visual depiction of the floor plan included in the Approved
Project Plans.
e. Floor Plan Layout: All chairs and tables shall consist of standard-height furniture
(i.e., not “high-top”) and shall be placed in accordance with the Approved Project
Plans. Furniture shall not be stacked, removed from the dining area, or placed
outside. At no time shall the seating be reconfigured to create large open spaces
for patrons to congregate, dance, drink, or socialize.
f. Hours of Operation. The hours of operation shall be 6:00 AM – 11:00 PM, daily,
inclusive of all employee and customer activity. No customer service, employee
activity, food preparation, cleanup, deliveries, trash handling, outdoor work, or
other business-related activity shall occur outside of these hours.
g. Liquor License: The establishment owner shall maintain in good standing a Type
41 (On-Sale Beer and Wine – Eating Place) license issued by the California
Department of Alcoholic Beverage Control (ABC) for the sale of beer and wine onsite consumption in conjunction with the operation of the establishment. The retail
sale of beer and wine for off-site consumption is prohibited.
h. Live Entertainment: No live entertainment is permitted as part of the Conditional
Use Permit approval, including live music, disc jockey, karaoke, and dancing.
Future requests for live entertainment shall be through approval of a Modification
to the Conditional Use Permit and shall be limited to live musicians complimentary
to the primary purpose of proving meal service.
i.

Food Service: Full menu food service shall be provided at all times during the
Business Hours in the dining and outdoor seating areas (i.e., the kitchen shall not
be closed).

j.

Alcoholic Beverage Service: Alcoholic beverage service shall only be allowed in
conjunction with food service.

k. Alcohol Sales: The monthly gross sales of alcoholic beverages shall not exceed
the gross sales of food during the same period, consistent with ABC licensing
regulations. The establishment owner shall provide sales records on demand to
the City to verify compliance with this standard.

Exhibit A – Conditions of Approval
PLN-2026-19 ~ 278 Campbell Avenue
l.

Page 3 of 6

Age Restriction: At no time shall the establishment impose an age restriction for
patronage. Minors shall be permitted within the establishment at all times that it is
open to the public.

m. Doors and Windows: All doors and windows shall remain closed after 10:00 PM.
n. Outdoor Trash Receptacle: The establishment shall maintain at least one trash
receptacle in the outdoor patio/seating area. The trash receptacle shall match the
proposed outdoor furniture with regard to both color and material. The outdoor
trash receptacle shall be consistently emptied and not allowed to overflow.
o. Outdoor Seating: Outdoor seating shall be subject to all restrictions herein. In
addition, the following requirements apply:
i.

Any changes to outdoor patio furniture (including tables, chairs, umbrellas,
and heaters) shall be subject to review and approval by the Community
Development Director.

ii.

Total patron occupancy in the outdoor seating area shall be limited to 34
seated patrons, as shown on the Approved Project Plans

iii.

At the business, all chairs shall be stacked, stored, or otherwise secured
out of public view to prevent unauthorized use.

iv. All outdoor furniture shall be kept clean and in good repair and replaced
and/or fixed as necessary.
v.

The business owner shall maintain comprehensive liability insurance and
list the City as an “additional insured”, consistent with CMC Section
21.11.060.F.6. Before the issuance of a Business License, the business
owner shall furnish to the City a certificate of insurance.

p. Smoking: "No Smoking" signs shall be posted on the premises in compliance with
CMC Section 6.11.060.
q. Taxicab Service: The establishment shall post in a conspicuous place the
telephone numbers of local taxicab services.
r. Loitering: There shall be no loitering allowed outside the business and within the
outside dining area. The business owner is responsible for monitoring the
premises to prevent loitering.
s. Storefront Glazing: All storefront glazing shall remain unobscured, except for the
25% of window area permitted to be occupied with window signage.
t. Noise: Regardless of decibel level or source, no noise generated by the
establishment shall obstruct the free use of neighboring properties so as to
unreasonably interfere with the comfortable enjoyment of the residents. In the
event verified complaints are received by the City regarding such noise, the
Community Development Director may immediately curtail the hours of operation
pursuant to Condition of Approval No. 6 (Revocation of Permit).

Exhibit A – Conditions of Approval
PLN-2026-19 ~ 278 Campbell Avenue

Page 4 of 6

u. Trash Disposal and Clean-Up: Refuse and recycling receptacles shall be kept
within the trash enclosure except during collection in compliance with CMC
Chapter 6.04 (Garbage and Rubbish Disposal). Emptying of trash receptacles and
placement of refuse and recyclable materials into the trash enclosure receptacles
shall occur only during the approved "Operational Hours".
v. Property Maintenance: All exterior areas of the establishment shall be kept free
from graffiti, trash, rubbish, and litter placed on the property, in compliance with
CMC Section 21.16.110 (Site Maintenance).
w. Employee Training: The establishment shall use an employee training manual
that addresses alcoholic beverage service consistent with the standards of the
California Restaurant Association and the Department of Alcoholic Beverage
Control.
x. Designated Driver Program: The establishment shall maintain and actively
promote a designated driver program (e.g., complimentary non-alcoholic
beverages for designated drivers).
y. Outdoor Activity: Other than outdoor seating, no outdoor activity (e.g., cooking)
is permitted in association with the establishment.
z. City Meetings: At the discretion of the Police Chief, periodic meetings will be
conducted with representatives from the Police Department and Department of
Alcoholic Beverage Control for on-going employee training on alcoholic beverage
service to the general public.
6. Modification and Revocation of Permit: Exercise of this Approval is subject to Sections
21.68.020, 21.68.030 and 21.68.040 of the Campbell Municipal Code authorizing the
appropriate decision-making body to modify or revoke a Conditional Use Permit if it is
determined that the sale of alcohol bas become a nuisance to the City’s public health,
safety or welfare or for a violation of this Approval or any standards, codes, or
ordinances of the City of Campbell.
At the discretion of the Community Development Director, if the establishment
generates three (3) verified complaints related to violations of conditions of approval
(e.g., noise, etc.) and/or related to the service of alcohol within a twelve (12) month
period, a public hearing before the Planning Commission may be scheduled to
consider modifying Conditions of Approval or revocation of the Approval. The
Community Development Director may commence proceedings for the revocation or
modification of the Approval upon the occurrence of less than three (3) verified
complaints if the Community Development Director determines that the alleged
violation warrants such an action. The Director may also, at such time, immediately
restrict the approved hours of operation to address complaints in a timely manner.
In exercising this authority, the decision-making body may consider the following
factors, among others:
a. The number and types of Police Department calls for service at or near the
establishment that are reasonably determined to be a direct result of patron
actions;

Exhibit A – Conditions of Approval
PLN-2026-19 ~ 278 Campbell Avenue

Page 5 of 6

b. The number of complaints received from residents, business owners and other
citizens concerning the operation of an establishment;
c. The number of arrests for alcohol, drug, disturbing the peace, fighting and public
nuisance violations associated with an establishment;
d. The number and kinds of complaints received from the State Alcoholic Beverage
Control office and the County Health Department; and
e. Violation of conditions of approval.

Project Description
Sultan’s Kebab
278 E. Campbell Ave
Campbell, CA 95008
This project is for the opening of Sultan’s Kebab, a fast-casual Mediterranean restaurant, at
278 E. Campbell Avenue in Campbell. The space was previously operated as Mo's
Breakfast Joint and will continue to be used as a restaurant.
Sultan’s Kebab will serve Mediterranean food including kebabs, rice bowls, salads, and
wraps for dine-in and takeout. The restaurant will also serve beer and wine for on-site
consumption in compliance with all applicable regulations.
Work will include interior painting, minor lighting updates, installation of decorative and
acoustic wall panels, general kitchen cleaning and maintenance, and installation or
replacement of equipment as needed. Minor repairs will be completed to ensure health
and safety standards are met.
There will be no building expansion, no increase in seating capacity, no exterior
modifications, and no structural changes. All work will comply with City of Campbell
building and safety requirements

ORDER COUNTER/DISPLAY CASE

CITY OF CAMPBELL ∙ PLANNING COMMISSION
Staff Report ∙ March 10, 2026
File No(s):
PLN-2026-22

Study Session on economic development, including an overview of
Campbell’s Economic Development Plan and current economic
conditions.

BACKGROUND
Like many communities, Campbell experienced significant economic disruption during
and after the pandemic. The City saw increased business closures leading to commercial
vacancies, along with a decline in tax revenue. Those conditions underscored the need
for a more deliberate approach to supporting business and fiscal sustainability. In 2024,
following extensive public engagement, the City Council adopted a new Economic
Development Plan to provide clearer direction for this work.
One of the Plan’s key recommendations was to increase certainty and reduce timelines
in the permitting process. In line with this, in 2024 the Planning Commission adopted an
ordinance that streamlined approvals, particularly by reducing the need for conditional
use permits for certain commercial categories. On Feb. 10, 2026, the Planning
Commission re-established its Economic Development Ad-Hoc Advisory Subcommittee
to build on that foundation and explore additional opportunities for reform. The analysis
below provides economic development context to inform those discussions.
DISCUSSION
Economic development consists of actions, policies, and programs that support jobs,
businesses, and the local tax base. Economic development outcomes directly influence
the City’s fiscal health and its ability to provide services. When successful, economic
development creates a virtuous cycle: Strong businesses generate revenue that supports
City services, and that in turn makes Campbell more desirable. A thriving, supportive
business climate also makes Campbell more competitive for both businesses and
residents, both of which are key contributors to the local economy.
Economic development tools available to cities vary. In some parts of the country,
economic development relies on large financial incentives to attract major new employers.
In Silicon Valley, especially since the dissolution of Redevelopment Agencies, cities have
few direct incentive tools. Economic development is more about reducing the barriers
and friction to operating, especially in the permitting process.

Campbell’s Economic Development Plan1 serves as the City’s organizing framework for
business retention, attraction, and location support. Recommendations include
developing relationships with the commercial real estate community to support re-leasing
efforts; supporting the City’s industrial hubs and traded-sector businesses; enhancing
Downtown place-making; supporting small business and startups; and leveraging
regional assets to drive the visitor market.
Since adoption of the Plan, implementation efforts have included:
•
•
•
•
•

Outreach to major employers and top sales tax generators
Regular engagement with brokers, property owners and business organizations,
including the Chamber and Downtown Campbell Business Association
Launch of a feasibility study for a potential assessment district in Downtown that
could generate additional funds to support Downtown vibrancy
Development of updated economic development marketing materials
Coordination with the Community Development Department to explore and
address business barriers

The City hired a full-time economic development manager in spring 2025 to lead
implementation of the Plan. In the coming year, the Economic Development Division is
focused on:
•
•
•
•
•

•
•

Supporting efforts to improve the experience of starting or relocating a business in
Campbell, including interfacing with various city departments and processes
Deepening relationships with key employers and property owners
Further developing and refining industry marketing materials
Coordinating with the Planning Division on potential regulatory streamlining
measures
Re-establishing the City’s Economic Development Advisory Committee to gain
feedback on the City’s business climate and any barriers/issues that the City can
help resolve
Reconvening the Broker Breakfast series and other broker engagement
opportunities
Supporting business activations tied to regional events

All of these activities ultimately aim to impact the City’s revenue and employment base.
What follows is a high-level overview of both, including recent performance and trends.
However, it is important to emphasize that land use decisions are not made on the basis
1

Available at https://campbellca.gov/DocumentCenter/View/7728

of revenue. Campbell’s General Plan instead contains numerous policies intended to
create a positive business climate, reduce regulatory burdens, and support job-generating
uses. Through these policies, the City seeks to create conditions that lead to long-term
fiscal sustainability. The discussion below is intended to provide context as the
Commission considers efforts aligned with those General Plan policies, which are
provided as an addendum.
Revenue and Sales Tax
The General Fund serves as Campbell’s primary discretionary account, funding core City
services such as police, public works, community development, and parks. For FY 202627, the adopted budget projects a General Fund of approximately $69 million. The two
largest revenue sources are property tax (34%) and sales and use tax (23%). Other taxes
and fees charged for City services are also significant contributors.
Property tax is based on the assessed value of residential and commercial property and
provides a relatively stable base of revenue. Growth occurs gradually and is tied to
reassessments after sale, new development, or reinvestment in existing properties.
Over the last several years, especially as home values have escalated, property tax has
increased as a share of the General Fund.
Sales and use tax respond more directly (and more quickly) to economic activity and
trends. Revenue is generated from traditional retail transactions (at places of business),
as well as business-to-business purchases, construction activity, auto-related sales, and
equipment purchased elsewhere but used in Campbell (use tax)2. Local sales tax has
been flat or declining for several years in Campbell, but use tax, which primarily includes
online sales distributed through the county pool, represents a growing segment.
Campbell has a diversified sales tax base. Restaurants, retail goods, construction
suppliers, and business-to-business transactions all contribute significant shares.
Notably, approximately one-quarter of sales and use tax receipts are generated from
activity in industrial and office areas. This dynamic underscores the fiscal importance of
non-retail employment lands along with traditional retail space.

2

Sales tax becomes use tax for purchases made from out-of-state businesses.

Fig. 2: Local Sales and Use Tax by Category3
Sales Tax Category
Share
Restaurants
21%
State and county pool
20
Food & Drugs
15
Business & Industry
13
General Consumer Goods 13
Auto & Transportation
7
Fuel & Gas Stations
6
Building & Construction
5
At the same time, Campbell’s sales tax portfolio is missing some key pieces. For example,
the City has few large-format retailers and no new-car dealerships4. Recent retail sales
tax gap analysis5 suggests potential unmet local demand in areas such as discount
department stores, office supplies/furniture, electronics, and quick-service restaurants.
However, opportunities for major retail expansion in the City are limited due to Campbell’s
small size and lack of major “main and main” retail locations.
Campbell’s sales tax receipts are also concentrated among a small number of payers.
While all businesses contribute to the City’s character and economic ecosystem, from a
fiscal perspective the retention of a few key generators is critically important. Economic
Development staff is currently focused on making retention visits to these businesses to
understand location needs and address pain points.
Fig. 3: Distribution of Campbell’s Local Sales Tax6 Revenue by Taxpayer Tier
Taxpayer Tier
%
of
Total Running Total (%)
Revenue
Top 25
43%
43%
Top 26-50
13.4
57
Top 51-100
14.7
71
All others
29
100
While critically important to the City, direct sales tax revenue is not the only lens through
which to view business or economic development opportunities. Most businesses do not
Based on FY 24-25 total for 1% Bradley-Burns sales and use tax. Source: HdL
Vehicle purchases delivered into Campbell (for example, when a Campbell resident buys a car from a
dealership outside the City) generate revenue for the City under Campbell’s local transactions and use tax
district.
5
Source: HdL. Compares Campbell’s per capita taxable sales in select retail categories to countywide
averages. This analysis is population-based and identifies a lack of stores in Campbell, but does not account
for competition just outside city boundaries.
6
Source: HdL. Analyzes city’s Bradley-Burns 1% local sales tax for FY 24-25.
3
4

generate significant sales tax, but may provide important resident amenities or services,
drive other nearby economic activity, support regional supply chain needs, enhance
innovation, or provide employment opportunities to the community.
Employment
After experiencing a significant decline during the early stages of the pandemic, total
employment in Campbell has largely recovered to pre-2020 levels, or roughly 25,000
payroll jobs across approximately 2,400 establishments. While the overall number of jobs
has essentially returned, the composition of Campbell’s jobs base has shifted. Health
care-related, professional services, and information sectors have grown. Retail trade,
construction, and certain support services have declined somewhat. Healthcare is the
City’s No. 1 employment sector with 15.3% percent of jobs, closely followed by
professional, scientific, and technical services at 14.9%. Manufacturing and industrialrelated uses are smaller, but have been relatively stable and continue to support
employment and business-to-business sales tax.
Fig. 4: Campbell Payroll Jobs, 2019-20247

Campbell is not a large regional jobs center, but it is not merely a bedroom community,
either. Census8 data from 2023 indicates that more workers commute into Campbell for
employment than leave for jobs elsewhere, with approximately 25,000 inbound
commuters compared to 20,000 outbound. (Approximately 1,300 both live and work in
Campbell.) Having a positive daytime population supports spending on retail, food and
business services. This drives additional sales tax revenue beyond what the resident
population would support alone.

Source: California EDD, Quarterly Census of Employment and Wages (QCEWS) through the fall of 2024.
Data is most recent available.
8
Source: U.S. Census via www.onthemap.ces.census.gov; most recent data is from 2023. Job totals differ
slightly from those cited above due to different data sources.
7

Employment is concentrated primarily in three areas: the Hamilton/Bascom corridor, the
Downtown/central area, and the industrial districts. These locations benefit from freeway
access and major roadway connections. Given the City’s small footprint and largely builtout condition, future employment growth is tied to absorption of existing space, though
selective redevelopment opportunities that intensify job capacity may still present
themselves where market conditions support it.
Commercial Real Estate Conditions
Campbell’s commercial real estate market benefits from its central South Bay location,
strong transportation links, and a positive community reputation. With a relatively small
building base across all asset classes, the City’s inventory is oriented toward small- and
mid-sized businesses. The following section provides a snapshot on market trends by
asset class.
Office. Campbell sits outside the region’s core tech-office submarkets, so demand tends
to arrive later in the regional cycle as conditions tighten elsewhere. With those core
markets still recovering, Campbell’s office market continues to experience elevated
vacancy – 32% at the end of 2025, according to Cushman & Wakefield data. That is
among the highest office vacancy rates in Silicon Valley. Still, at just 2.6 million sq. ft
(about 1/4th of the office inventory of Downtown San Jose), relatively small tenant moves
can easily shift vacancy rates in either direction.
Large office requirements (20,000 square feet and greater) are rare in the West Valley,
and the City’s office inventory generally does not offer the large contiguous blocks or
expansion “runway” that large and scaling tech companies often require. Instead,
Campbell is primarily a hub for smaller professional office and startup tech. In 2025,
Campbell saw positive net absorption9 as the city attracted several notable companies to
renovated office and R&D properties. For example, The Pruneyard attracted Studio G
Architects, Chicago Title, and several attorney groups from San Jose. In Downtown
Campbell, startups such as ServiceUp (fleet management technology), Algorized (sensor
technology), and VAST Data (AI data center infrastructure) either relocated or expanded.
Outreach to these new tenants indicates that Campbell’s walkable amenities,
transportation options, and overall sense of cleanliness and safety were important factors.
Nearly all cited Downtown and The Pruneyard as attractive amenities.
Over the last few years, newer office space in the Santana Row/Valley Fair area has
attracted some Campbell office tenants. That movement reflects both a broader flight to
high-quality space and the continued importance of retail and service amenities. The City
Net absorption refers to the amount of space that tenants lease or occupy minus the amount that they
vacate.
9

competes well on the latter; Campbell office owners who have reinvested in their
properties are seeing stronger leasing activity. As other West Valley projects approach
capacity, staff is focused on maintaining close relationships with existing employers to
anticipate expansion needs and to ensure that prospective tenants and brokers are aware
of available opportunities in Campbell.
Retail. Retail vacancy remains low overall at less than 3% according to CoStar data,
though a handful of highly visible vacant spaces persist. The good news: Many of them
are now either under active lease negotiation or have signed deals and are working
through permitting. This includes the vacant Denny’s at 2060 S. Bascom (to be
redeveloped as a Chase bank); the former Big Lots space at 1581 W. Campbell (leased
to Apni Mandi Farmers Market); and the former Rock Bottom Brewing at The Pruneyard
(to be replaced by Laughing Monk Brewing).
While overall vacancy remains low, individual properties may sit vacant longer than the
City and community would like. In some cases, rents or price expectations are too high
for the market. In others, properties need significant capital improvements, and this may
pose a challenge to less-resourced property owners. Economic development staff may
engage where appropriate and attempt to brainstorm or problem-solve, but in many cases
the City has limited tools to influence the owner’s strategy and position.
Industrial. Campbell benefits from hosting one of the few remaining light-industrial
districts in the West Valley. They are modest in scale (approximately 2 million square feet
along Dell Avenue/Camden and 635,000 square feet along McGlincy Lane), but these
districts enable traded-sector firms to maintain a foothold in Silicon Valley. Traded sector
refers to businesses that sell their goods to customers outside the region, which brings
new dollars into the local economy. Dell Avenue in particular supports a cluster of
innovative startups, with concentrations in medical device (ShifaMed, Imperative Care)
and hardware (TrueNAS, Summer Robotics, Zadar Labs).
Because of its scarcity, industrial space is highly prized in Campbell, with vacancy rates
historically in the 2% range. In 2025, several larger industrial tenants wound down
operations and the citywide rate ticked up to 6.3%. This increase is largely attributable to
a small number of larger buildings coming available rather than broad-based softness
across the districts. Staff is engaged with property representatives to support re-leasing
or sale discussions to businesses that have high value in terms of the types of jobs or
potential revenue.
Hospitality. Campbell’s hotel sector has recovered from pandemic lows, but performance
remains below 2019. In outreach meetings, hoteliers blame reduced corporate and group

travel and increased competition from newer supply in other markets. Still, the sector is a
major source of City revenue. Campbell’s 12% hotel tax generated approximately $4
million in FY 2024-25. Although below the 2019 high of $4.6 million, collections have
grown steadily each fiscal year since the pandemic trough.
Among Campbell’s seven properties (totaling roughly 720 rooms), recently renovated and
well-capitalized hotels are achieving stronger occupancy and rate performance than
properties that are older and have deferred maintenance needs10.
Campbell Hotel Market Performance Trends

ADR ($)

Jan-26

Sep-25

May-25

Jan-25

Sep-24

May-24

Jan-24

Sep-23

May-23

Jan-23

Sep-22

0%

May-22

$-

Jan-22

20%
Sep-21

$50
May-21

40%

Jan-21

$100

Sep-20

60%

May-20

$150

Jan-20

80%

Sep-19

$200

May-19

100%

Jan-19

$250

Occupancy (%)

Campbell has not added new hotel supply in well more than a decade, and viable
development sites are extremely limited. In the near and medium term, future growth in
Campbell’s Transient Occupancy Tax will depend largely on reinvestment within the
existing portfolio to attract greater occupancy at higher rates. The recent sale of the 95room Campbell Inn to a new ownership group planning upgrades is a positive
development, as is the renovation now finishing up at the Courtyard by Marriott.
Policy Considerations
The section below captures several trends and themes across Campbell’s real estate
market that may be useful for policymakers exploring options to support the City’s
economic development goals.
Retail continues to evolve. Retail continues to evolve. New concepts emerge regularly
that do not fit neatly within traditional zoning categories and often blur the line between
retail, entertainment, fitness, health/wellness, and services. In some cases, codes may
Source: CoStar. For privacy reasons, CoStar’s Campbell submarket includes some comparable properties
from neighbor cities. Average Daily Rate is the measure of the average paid for rooms sold in a given time
period (room revenue/rooms sold).
10

need to be revised to better address these evolving uses. While many of these newer
uses generate little or no sales tax, they can contribute value in other ways, such as
bringing foot traffic, encouraging cross-shopping, activating tired storefronts, and
providing services that benefit residents. At the same time, the prized, highly visible
commercial corners and anchor tenant spaces remain important locations for traditional
retail uses.
Notwithstanding earlier streamlining efforts, some established commercial uses may still
trigger discretionary permits. Brokers have shared that, when faced with a discretionary
permit process, many retail tenants will simply look to a neighboring city that does not
require one. For instance, many cities do not require use permits for quick service
restaurants or cafes that do not include a drive-through.
Commercial land is finite – and shrinking. Campbell has very few commercial sites
with the access, visibility, and size needs to support major retail users. Decisions that
change the use or viability of these properties can be consequential for the City. While
mixed-use development can provide neighborhood-serving retail, these smaller groundfloor spaces do not usually draw larger anchor-type retailers.
New laws will increase conversion pressures further. Regardless of local decisionmaking, recent State laws that streamline residential conversion, such as SB 79, will
increase pressure on certain office, retail and industrial sites that were not contemplated
for transition in Campbell’s most recent Housing Element. While such changes may
advance housing objectives, they reduce long-term employment capacity and revenue
potential for the City.
Office is down, but not out. Office is clearly softer than it was pre-pandemic, but brokers
have reported tenant touring activity has picked up, particularly for small- and mid-size
users. Recent ownership turnover has also played a role. Buildings previously hamstrung
by high debt have sold at a discount11. This allows new owners to reinvest and offer more
competitive lease terms. Not all properties have reset yet, and staff expect continued
movement as some buildings work through financial pressures.
Repositioning equals competitiveness. Across Silicon Valley, tenants and customers
are gravitating toward new or updated properties – a so-called “flight to quality.” For
example, hotel operators report that corporate accounts may not book properties that are
not either new or recently renovated. In Campbell, reinvestment in existing properties is
the most likely scenario given the challenging market for ground-up new development.
While such sales can unlock more deal making, they also can re-set property values at a lower basis,
lowering property tax revenue over time.
11

Policies that facilitate modernization, including streamlining exterior upgrades, façade
improvements, and signage or branding, can reduce barriers to investment decisions and
help property owners compete.
Hospitality growth is a long game. New hotel development is currently not feasible in
much of Silicon Valley given construction costs, occupancy levels, and average daily
rates. But future supply growth will depend on whether local standards allow modern hotel
prototypes to pencil when market conditions improve. Campbell’s current floor-area-ratio
cap of 1.0 in much of the City may constrain contemporary select-service hotel formats,
which typically require greater height and density. Exploring a targeted update to
development standards for hotels could position the City to capture future hospitality
investment when the market cycle eventually turns, as it eventually will.
Industrial provides many benefits to Campbell. Industrial districts are often
overlooked, but they are central to Campbell’s economic base – indeed the region’s. They
support quality jobs that do not necessarily require a four-year degree (but pay better
wages than many service-sector jobs), generate revenue through business-to-business
sales, and help maintain a local production and supply-chain presence within the region.
Without them, some traded-sector firms involved in production would likely leave the
region entirely.
Like retail, light-industrial and research-and-development activity itself continues to
evolve. Warehouse, incubator, data infrastructure, “maker” spaces, electric vehicle, and
flexible production models may blur traditional distinctions between office, R&D, and
industrial uses. Economic development staff is currently exploring potential updates and
streamline opportunities to better support the sector.
At the same time, properties in these areas are often attractive to non-industrial users
that can pay higher rents than traditional industrial tenants. Over time, this can shift the
economics of industrial land and price out industrial users. Incursion of nonindustrial
tenants may also create operational conflicts for remaining traded-sector businesses.
While it makes sense to streamline approvals for industrial users in industrial districts,
expanding allowances for fitness, personal services, or medical uses – particularly for the
very limited number of larger facilities – risks undermining the long-term viability of these
lands.
Based on the economic conditions described above, the following policy areas may
warrant further exploration and refinement:
• Streamline use-permit requirements for certain retail uses, including quick-service
restaurants without drive-throughs, larger-format retail and grocery, and ancillary

•

•

•

•
•

alcohol sales associated with restaurants, food production, and grocery
operations.
Reinforce the viability of industrial districts by limiting further encroachment of nonindustrial uses, particularly on larger or strategically located sites. At the same
time, explore streamlining approvals for bona fide industrial activities such as auto
repair, building materials, yard spaces, and related LI uses.
Alternatively, the Commission could explore a broader reset: default all uses to an
Administrative CUP and focus policy work on which uses (or thresholds/locations)
should be “upgraded” to a full CUP.
Modernize RD zoning to reflect evolving models, including incubators, commercial
kitchens/caterers, data infrastructure, and flexible warehouse or distribution
components tied to production uses.
Evaluate increased FAR allowance for hotels to support new hotel development as
well as explore expanding making hotels a permitted use in more zones.
Explore targeted updates to vehicle-related use categories to reflect evolving EV
models that may include customer delivery hubs, light service, limited display, and
on-site point-of-sale transactions.

CONCLUSION
Campbell remains a highly desirable location for businesses thanks to its central position
within the West Valley, strong trade-area demographics, and walkable districts like
Downtown and The Pruneyard. These advantages continue to attract startups,
professional firms, and neighborhood-serving retail.
At the same time, the City’s small footprint and limited inventory underscore the
importance of careful decision-making and policy that impacts economic development.
Opportunities include modernizing development standards where appropriate and
streamlining processes that support reinvestment and re-leasing. Staff will continue
monitoring market conditions and pain points to identify practical opportunities to
strengthen Campbell’s competitiveness and economic sustainability.
PREPARED BY: _____________________________________
Nathan Donato-Weinstein, Economic Development Manager

APPROVED BY: _____________________________________
Rob Eastwood, AICP, Community Development Director
ATTACHMENTS
A: General Plan Economic Development Policies

Attachment A: General Plan Economic Development Policies
Reference
Policy/Action
Goal ED-2.1
Ensure that the city’s general plan helps
sustain a healthy, balanced economy that
fosters strong economic growth and
quality of life for all residents
Goal ED-2.2
Facilitate retention and expansion of
businesses that support the goals and
vision of the city, provide employment
opportunities for Campbell residents, and
help sustain a strong economy.
Goal ED-3
Attract and Retain companies and
industries to Campbell that provide
diversity in the city’s economic base and
jobs that reduce out-commuting.
Goal ED-4
Strengthen the economic base of the city
through the installation of needed capital
improvements that help make Campbell a
competitive business location.
Goal ED-5
Encourage new development in key
areas that provide high-quality work
locations for existing and new
businesses.
Goal ED-6
Encourage and support Downtown as the
heart of Campbell’s cultural and civic life,
and a place where residents, workers,
and visitors can share in the heritage,
vibrancy, and vitality, of Campbell.