By Megan Ma

After a two-year process, the Los Altos City Council Oct. 11 unanimously approved plans for Silverstone Communities to build a 78-unit housing complex at the corner of El Camino Real and Los Altos Avenue.

Site development is set to begin next fall, said Silverstone President John McMorrow, who estimates completion in early 2009. The L-shaped project area includes the former Red Lobster site, now vacant, and the Round Table Pizza site, and wraps around the Unocal gas station facing El Camino Real.

Mayor Ron Packard said that he was pleased with the plans, although he expressed a preference for retail in the commercial zoning district to generate revenue for the city.

“I think the building is very attractive,” Packard said, referring to the Silverstone design. “It goes against my general preference for retail over housing. I think we’ll be shortchanging the city and residents in the long run. But I like it.”

Of the 78 units, 53 are condominiums and 26 are town homes. Eight of the units are priced below housing rates to meet the county’s affordable housing criteria, accessible to those making no more than 50 percent of the Santa Clara County median income. One-bedroom apartments will start in the “low $500,000 range,” McMorrow said. The company will launch its marketing campaign next year and anticipates a wait-list for the units.

Community Development Director James Walgren said that housing projects, especially recent ones, have fomented discontent.

“Housing projects are always a bit unpredictable. The Silverstone project was very similar to the 5100 El Camino project, so you never know,” he said, referring to a housing project that met a wall of controversy.

Councilman David Casas commended the Silverstone staff for rigorously following the city’s design and procedures. “We’re a very process-driven city,” he added.

Planning commissioner Randall Hull agreed with him.

“Silverstone did a very good job approaching the neighborhood, and I applaud them,” he said.

Hull compared the project to development of the recently opened Whole Foods.

“Their people did it very much the same way as Sand Hill Properties did when they developed Whole Foods. Only a few residents spoke, raising questions regarding landscaping, resident parking and how commercial deliveries would be handled. There are no outspoken opponents to the project,” he said.

In other action, the council:

• Approved the replacement of two undercover detective vehicles by purchasing two used vehicles, for a cost of up to $20,000 each.

• Approved a variance and design review application for 129 First St. The 2,685-square-foot floor-covering business.