The city of Sunnyvale has taken one step, and is prepared to take one more toward helping a new developer finish the long-stalled Sunnyvale Town Center.

On May 23, the city planning commission voted to approve an updated development permit that could move the project forward once again.

In addition, the Sunnyvale City Council on June 28 is scheduled to review the project’s development agreement, which defines the obligations of the developer to execute and complete the project, according to the city.

The council will review and take action in its role as the successor agency to the Redevelopment Agency. Both the special development permit approved by the commission and the development agreement are essential for completing the sale of the town center from current owner Wells Fargo Bank to new ownership.

The new developer is an ownership group called STC Venture, LLC made up of J.P. Morgan Asset Management, Sares Regis Group and Hunter Properties Inc.

The 36-acre town center property is located downtown and is bordered by Mathilda, Washington, Sunnyvale and Iowa avenues.

The commission’s action last week updates the special development permit. The original land use and site development plan for the town center project was approved on Feb. 6, 2007. At the time, the council signed off on the town center project, which proposed to build up to 1 million square feet of retail, residential and office space as well as a hotel in the hopes of creating an attractive and vibrant downtown area. The town center was bought and developed by a joint venture between Sand Hill Property Co. and RREEF, but development halted when the group defaulted on a $108.8 million loan in 2009 from Wells Fargo. The project was in a web of legal entanglements and has been stalled ever since.

In 2011 Wells Fargo purchased the project in a foreclosure sale. The project was then put on hold due to litigation between Sand Hill and Wells Fargo, which was resolved in August 2015, thus clearing the way for a sale. In November, the new ownership group announced its intent to purchase the project. The city council gave the group a vote of confidence Dec. 10 by finding that it met criteria related to development experience, financial capacity and reputation to finish the project.

The updated special development permit now allows rental housing units at the town center. The original permit stated that residential units were for sale only. In addition, the updated permit allows a temporary parking lot and landscaping improvements at Redwood Square, a green space at the center of the block meant to be a meeting space.

Construction of buildings at Washington and McKinley avenues had been started by the original developer and remains unfinished.

“It was disheartening, to say the least, when the downturn happened to see the downtown and Redwood Square sit there uncompleted. As it rusted away, all efforts to work with previous developer to create a design that fit with the community need was a big goal, and it was hard to see that go away,” said commissioner Larry Klein during the meeting.

The temporary parking lot will be used for two years until parking structures are completed. Existing redwood trees on green lawn area will remain at Redwood Square, which is bordered by Murphy Avenue.

The developers will also work with the city to build nonresidential structures to LEED gold design standards. Applicants will integrate smart technology into the property like smart phone apps and electronic monitoring systems for the parking garages.

The permit update will have developers enter into a below market rate/affordable housing agreement with the city, which will have 12.5 percent of units designated as low-income units for 55 years.

The planning commission’s May 23 decision is final unless the item is called up by the city council or appealed before June 7.