Toll Brothers wants to turn the Moonlite Shopping Center on El Camino Real into a 601‑unit housing complex that would push out more than a dozen long‑running small businesses, including a newly opened bakery and a decades‑old vacuum‑and‑sewing shop. The proposal calls for three six‑to‑seven‑story buildings, 159 three‑story townhomes, a dedicated affordable rental building, and several thousand square feet of ground‑floor commercial space framed around large open plazas. If approved by the Santa Clara City Council, the project would redevelop the 14.3-acre site at 2610 El Camino Real, aiming for completion in 2029. Neighbors at a recent outreach meeting said they were torn between the need for housing and the loss of neighborhood storefronts.
What Toll Brothers is Proposing
The developer’s submission calls for 601 dwelling units, two condominium podiums fronting El Camino Real, a 166‑unit affordable apartment building, and 159 townhomes, together with roughly 60,000 square feet of open space and ground‑floor commercial, according to the City of Santa Clara. Architectural renderings published by the project's architect show three six‑ to seven‑story podium buildings and a central plaza intended to organize retail and resident amenities, according to Van Meter Williams Pollack.
Small Businesses Brace for Displacement
Long‑running storefronts in the Moonlite strip say they’d be displaced if the plan moves forward. Dilkush Bakery and Cafe, which opened about two months ago, and shops like Moonlite Vacuum & Sewing Center were cited by merchants and neighbors at a community outreach meeting; a bakery worker said, “This is a good place for them in Santa Clara because (we have) some of the things we don’t get in Santa Clara.” The reporting was documented by San José Spotlight.
How This Fits Into Santa Clara’s Housing Targets
The Moonlite proposal arrives as Santa Clara works to meet its 2023–2031 RHNA allocation of 11,632 units, more than half of which are required to serve lower‑income households, per the city’s housing element record. The RHNA figure has prompted the city and private developers to seek large parcels for denser housing near transit and employment centers, according to City of Santa Clara documents.
Approval Timeline and the Legal Path
Developers have utilized state streamlining tools, such as Senate Bill 330, in filings to limit additional hearings and expedite review when certain affordability thresholds are met, according to SF YIMBY. Toll Brothers also informed neighbors that it is partnering with USA Properties Fund and has proposed eviction-prevention and social-services programs as part of its community outreach. According to reporting by San José Spotlight, the company aims for a 2029 completion date.
Neighbors’ Concerns: Vacancies, Grocery Deserts, and Historic Shops
Some residents said they support adding units but worry that properties bought for redevelopment will be left vacant or that the corridor will lose needed retail, such as a grocery store. Neighbors pointed to the Moonlite Lanes townhome project across the street, which replaced a bowling alley, as an example of how community amenities can be lost when redevelopment occurs, as reported by SFGATE.
Next Steps
The proposal remains subject to formal entitlements from the city, and any relocation assistance or tenant protections will be negotiated as part of that process. Toll Brothers hosted a hybrid outreach meeting in late October, and city staff say that public feedback will inform the planning review. Project materials and a meeting flyer are available on the City of Santa Clara's project page for 2610 El Camino Real, as per the City of Santa Clara.
