Under the new plans, Sobrato will build 295 apartments and 120,000 square feet of office space on its 12.3-acre parcel of land on Winchester Boulevard near Highway 85. The original plans called for 135 apartments and up to 288,000 square feet of office space. With this change, the company will also increase the number of apartments it will rent at below market price to low-income tenants from 34 to 49.

"The modified plans offer superior benefits to the approved plans," said John Shenk, Sobrato's senior vice president. "For it to be successful to us, it needs to be successful to the community."

Sobrato decided to reduce the size of office buildings in the project because there is no longer as strong a demand for office space in the market.

During the approval process for the original plans and again at last week's study session to review Sobrato's new proposal, those involved with the project cited such community benefits as the introduction of a daily express shuttle between the project site and the Valley Transportation Authority's light rail station in Campbell, as well as a $100,000 contribution for gateway art to spruce up the northern entrance into town.

New or improved benefits include a decrease in traffic because of the reduction in commercial buildings, the addition of 15 affordable housing units, an opportunity to expand the previously approved park along Los Gatos Creek Trail by another 10,000 square feet and more money going into town coffers after Sobrato pays for increased traffic mitigation fees.

Mayor Sandy Decker, who cast the lone dissenting vote when the council approved the project last year, was still not entirely convinced the project is justified. Concerned that the project is not community-oriented, the mayor said the European-style village Sobrato has in mind for the apartments aren't in line with town architecture.

Also out of character is the idea of a three-story building, which Decker asked to be reduced to two. The office and residential buildings will stand at heights of 49 and 41 feet, respectively. According to the mayor, the apartment complex would house an estimated 1,000 people, which would result in a density problem never before seen in town.

"I find that is not something I can do to this community for those 49 units," Decker said in reference to the number of affordable housing units resulting from the project.

Further, Decker questioned whether the new proposal should be considered a new project altogether, since only two of the original buildings remain. A new project would mean that Sobrato would have to go through the entire application process again.

But by considering the new plans as a modification of a planned development, the town could expedite the review process and allow some elements of the previously approved plans to remain valid, such as materials and color scheme for the buildings. Final plans would still undergo public hearings at both planning commission and town council meetings.

Expediting the process would allow Sobrato to break ground before its architecture and site approval permit expires in August 2004.

Councilman Joe Pirzynski, who approved the project the first time around, was pleased to see the project move in the "right direction."

"This is an appropriate evolution," he said.

Half of the dozen members of the audience who spoke at the study session backed the new proposal.

"This happens to be a nexus that would make you dance," said Tamara Shelton of Greenbelt Alliance, an open space interest group. Shelton was referring to the idea of having living quarters near a major public transit line. "This could be a model for the whole Bay Area," she said.

Representatives from other interest groups, including the League of Women Voters and Housing Action Coalition, also threw their support behind Sobrato.

Coming out in equal numbers were opponents of the project. Among them was former town planning commissioner Len Pacheco, who criticized the project as being too massive in scale and having potential impacts on the environment.

"Why do I get the feeling that we're being forced to rubber stamp this?" he said. "I get the feeling we're being used by the developer rather than using the developer to improve the town." He added that he would like more community involvement in the review process.

Other suggestions from council members to Sobrato were to erect story poles at strategic points, provide a three-dimensional model and further explore ways to address height and density concerns. Decker asked Sobrato to reconsider leasing the office buildings to retailers that can serve residents in that part of town.

Councilman Mike Wasserman said had he been on the council when the project was first brought forth, he would have voted against it. Though Sobrato is headed in the right direction with the changes, the project is still not completely "palatable," and more could be done to mitigate density concerns, he said.

Like Wasserman, Councilwoman Diane McNutt had not been elected yet when the project was first approved. The additional housing provided in the new plans is a plus, she said.

"Let's go forward and see if we can get something done," she said. "I'm tired of looking at the fields."