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Director's ReportCITY OF CUPERTINO 10300 TORRE AVENUE, CUPERTINO, CALIFORNIA 95014 DEPARTMENT OF COMMUNITY DEVELOPMENT Subject: Report of the Community Development Direct Planning Commission Agenda Date: Tuesday, Tanuary 6, 2009 The City Council met on December 16, 2008, and discussed the following item of interest to the Planning Commission: 1. Heart of the City Specific Plan Amendment: Council continued the item to January 20, 2009 and provided direction to staff to prepare an overview of the current allocations in the General Plan. 2. SandHill's Main Street Project: The City Council was introduced to the project and took public comment. The council will hear this application at their meeting of January 12, 2009 provided the Planning Commission finishes its deliberations on January 6, 2009. Miscellaneous Items: 1. Light Meals provided prior to 2009 Planning Commission meetings: Beginning at the Special Meeting on Tuesday, January 6, 2009, we will begin providing light meals at 6:00 pm. We need your assistance with rinsing off your own dishes, placing them in the dishwasher, and storing left-over food in the refrigerator. 2. Reappointments: Commissioner's who are up for reappointment should ensure their applications are received by the Clerk's office no later than Wednesday, January 14 at 5:30 PM. 3. Happy Holidays! Community Development staff wish you and your family a healthy and prosperous 2009 filled with hope, inspiration, and many achievements. It has been a pleasure working with you this past year. Enclosures: Staff Reports Newspaper articles G: ~ Planning ~ SteveP ~ Director's Report ~ 2009 ~ pd1-6-09.doc ~~ `~ CITY OF City of Cupertino 10300 Torre Avenue Cupertino, CA 95014 (408) 777-3251 C O P E RT I N O FAX (408) 777-3333 Community Development Department SUMMARY Agenda Item No. Agenda Date: December 16, 2008 Application: SPA-2008-01 Applicant: City of Cupertino Application Summary: Update the Heart of the City Specific Plan to reflect the changes adopted in the 2005 General Plan. RECOMMENDATION: The City Council may consider the following options: 1. Adopt the Heart of the City Conceptual Plan (abbreviated version) with the changes previously directed by Council. 2. Discuss and consider the remaining Planning Commission recommended changes (See Exhibit B). BACKGROUND: On December 2, 2008, the City Council reviewed the drafts of the Heart of the City Specific Plan and abbreviated Conceptual Plan, and recommended that staff: • Provide a review of the 2005 General Plan to describe the boundary changes in the Heart of the City area • Create a matrix of all changes recommended by the Planning Commission • Prepare an updated version of the Heart of the City Conceptual Plan (abbreviated version) with all changes recommended by the Planning Commission The City Council previously heard this item on October 21, 2008, at which time the staff-proposed draft Heart of the City Specific Plan was presented to the Council with changes as recommended by the Planning Commission. The Council requested that an abbreviated version of the Heart of the City Plan be prepared to simply the document by removing all repetitive language that is already in the General Plan. Since all goals and policies in the General Plan regarding the Heart of the City would still prevail, the Council felt it was unnecessary to repeat these goals and policies in the Heart of the City plan. DISCUSSION: Staff has prepared a matrix (See Exhibit A) of all changes recommended by the Planning Commission and a column that identifies the Council's recommendations on each recommended change from the December 2nd meeting. Staff has also prepared a pR-Z sPA-2oo8-0l Heart of the City Specific Plan Update October 21, 2008 Page 2 redlined version of the abbreviated Heart of the City Conceptual Plan that includes all changes for the City Council to consider as recommended by the Planning Commission. The matrix and redlined version also include the recommended language by Council member Sandoval to revise one of the Plarning Commission policies to read: Plans for the new projects should include pedestrian and bicycle pathways, incorporating the City's existing network. (See Page 4 of Exhibit B) REVIEW OF 2005 GENERAL PLAN Staff was able to confirm that the Heart of the City plan boundary was amended as part of the 2005 General Plan update. The boundary changes included the removal of the South Vallco Park area, the City Center area, the Glenbrook Apartments, the rear portion of Memorial Park and De Anza College from the Heart of the City boundaries. The main reason for the changes is because the Heart of the City plan is principally a streetscape plan that governs building frontage details along Stevens Creek Boulevard. The areas that were taken out as part of the 2005 General Plan update were all cohesive areas that either have been built out, are not within the City's review jurisdiction, or are governed by another specific plan. However, the portion of these areas along the Stevens Creek Boulevard Corridor were still required to comply with the Heart of the City design guidelines to retain a consistent tree-lined streetscape along Stevens Creek Boulevard. Prepared by: Aki Honda Snelling, Senior Planner Approved by: David W. Knapp City Manager Attachments Exhibit A: Matrix of Planning Commission recommendations Exhibit B: Abbreviated Heart of the City Conceptual Plan with recommended changes by the Planning Commission Exhibit C: Minutes of December 2, 2008 City Council meeting Exhibit D: December 2, 2008 Council report w/attachments 2 ~~._~ J lC V C 1 1QJClat1 Director of Community Development City of Cupertino 10300 Torre Avenue Cupertino, CA 95014 (408) 777-3251 FAX (408) 777-3333 Community Development Department SUMMARY Agenda Item No. Agenda Date: December 16, 2008 Application: U-2008-O1, ASA-2008-06, TM-2008-01, TR-2008-08 Applicant: Kevin Dare, Sand Hill Property Company Property Location: APN#s: 316-20-078, 079, and 085 -North of Stevens Creek Boulevard and south of Vallco Parkway between the Metropolitan mixed-use retail/condominium development and Tantau Avenue Application Summary: 1. Master Use Permit - for a mixed-use development within a P (CG, O, ML, Hotel, Res) Planned Development zoning district 2. Architectural and Site Approval -for the architecture of the individual buildings and overall site layout of the mixed-use development project 3. Tentative Map - to subdivide three parcels into five parcels 4. Tree Removal Request - to remove a total of 94 trees RECOMMENDATION: The Planning Commission adopted a minute action (See Exhibit A) recommending that the Council consider the project only as an introductory "information item" at this time until the Planning Commission is able to make a formal recommendation to the Council. Based on the California Environmental Quality Act (CEQA), the City cannot render a decision on a project until the Final Environmental Impact Report (FEIR) circulation period ends. The city wide postcard originally noticed the project to be heard by the City Council for the first time on December 16, 2008, with the Planning Commission making their formal recommendation at their December 9, 2008 hearing. However, due to changes to the environmental documents, the final public circulation period was delayed. Consequently the Planning Commission was not able to make a final recommendation at their December 9, 2008 meeting. Due to the complexity of the project, it is advantageous for the City Council to be introduced of the various facts of the project and take in public testimony. However, the Council is not in a position to make a decision without having the benefit of the Planning Commission's recommendation. p r<-~ Applications: U-2008-O1, ASA-2008-06 Main Street Cupertino December 16, 2008 TM-2008-O1 & TIZ-2008-08 Page 2 BACKGROUND: The proposed project is planned to be developed on a vacant portion of property previously owned by Hewlett-Packard. The site previously received approval of a 400 unit residential condominium project with an 115,000 square foot retail shopping center and 3.5 acre public park that was to be developed by Toll Brothers. The residential condominium/retail shopping center project was approved by the City Council on March 21, 2006. However, the project approval was overturned by voters in Cupertino on November 7, 2006 when Measure E failed to pass during the elections. Sand Hill Property Company subsequently acquired the property in 2007 and has submitted the proposed mixed-use development. DISCUSSION: Project Summary Sand Hill Property Company is requesting approval of a Master Use Permit and associated applications to construct amixed-use retail, office, senior housing, hotel and a sports club development on a 17.4 acre site located on the north side of Stevens Creek Boulevard, east of Wolfe Road and west of Tantau Avenue. The project will abandon Finch Avenue as a public street and is proposing to include a "Main Street" that will start from Vallco Parkway and run through the development with a series of plaza areas leading to a 1.64 acre town square and park. The applicant will allow full public access over the newly configured private street network. The concept of the "Main Street" is to promote the vision for this area within the South Vallco area as a pedestrian-oriented, vibrant "downtown-ish" gathering place to serve Cupertino residents and hold a regional appeal to visitors. Development Options A & B The applicant has submitted two development options for the City to consider that provide a variation in the mixture of uses: ~2-S Applications: U-2008-01, ASA-2008-06 Main Street Cupertino December 16, 2008 TM-2008-O1 & TR-2008-08 Page 3 Pro osed Develo ment O tions Retail Athletic Office (sfl Senior Hotel Open Space with a On-site (sfl Club Housing (rooms) Public Easement Parking (sfl (units) (ac) (stalls) Option A 150,000 *145,000 100,000 160 150 1.63 1,520 ~ ~ ~ ~ ~ ~ Option B 146,500 ~ 205,000 160 250 1.63 1,830 * A membership restriction of 9,000 is applied to the athletic club (equivalent to 98,800 sf of commercial use based on vehicle tri eneration) Note: sf= s uare foota e, ac= acres Site Plan Alternative Development Plan C In response to comments by the Planning Commission and the public, the applicant is contemplating a third development alternative (Alt. C), which will essentially replace the athletic club in Option A or the three-story office buildings in Option B. The Alt. Plan C incorporates the following features: 30,000 square foot major tenant with adjacent 6,000 square foot additional retail pad on the corner of Stevens Creek Blvd and N. Tantau (in lieu of the athletic club or additional office buildings). Retail commercial buildings fronting Stevens Creek Blvd. in lieu of the park A 30,000 square foot major retail tenant building facing Vallco Parkway, in lieu of a 40,000 square foot major retail building. Surface parking between the retail shop in the former park location and the senior housing building Surface parking facing Vallco Parkway Fully enclosed loading dock facing Vallco Parkway 191 senior housing units, instead of the previous 160 proposed i~ R - ~.= Applications: U-2008-O1, ASA-2008-06 Main Street Cupertino December 16, 2008 TM-2008-O1 & TR-2008-OS Page 4 Please note that in order to approve Alternative Plan C, the environmental impact report would have to be revised and recirculated. Planning Commission The Planning Commission reviewed the project on October 28th and December 9th, and listened to public comments during the public hearing. The Commission expressed thoughts on the project, but was not able to make a recommendation on the project because the Final Environmental Impact Report (EIR) has not yet been prepared and circulated. The Commission will not be able to make a formal recommendation on the project to the City Council until after January 2, 2008, at which time the circulation period of the Final EIR will end. The Commission is not forwarding its preliminary thoughts and comments on the project at this time until the Commission can complete their review of the project and the environmental reports and then make a formal recommendation to the City Council after considering all elements and public input. As a result, the Commission sent a minute order to the City Council requesting that the Council consider the project only as an introductory "information item" at this time. The Commission also voted to hold a special Planning Commission public hearing on January 6, 2008 to allow the Commission the ability to make a formal recommendation on the project before the January 12, 2008 City Council meeting. Public Outreacl2 The applicant conducted extensive public outreach in preparation of submitting the project application. The concept of the project was discussed in advance of the application submittal during community meetings as part of the public outreach for the South Vallco Master Plan. The following is a list of the public outreach that was conducted: ^ First community workshop - Apri110, 2008 ^ Second community workshop -April 23, 2008 Did-7 Applications: U-2008-O1, ASA-2008-06 Main Street Cupertino December 16, 2008 TM-2008-O1 & TR-2008-08 Page 5 ^ Citywide community meeting -July 10, 2008 ^ Additional meetings with community groups, adjacent property owners & stakeholders in the area ^ City wide post card mailed out ^ Project details posted on the web Submitted by: Aki Honda Snelling, Senior Planner ~ Gam Chao, City Planner Submitt d b " : ApprovedJby: C~ Steve Piasecki David W. Knapp Director of Community Development City Manager Attachments: Plan set Exhibit A: Minute Order of the Planning Commission, December 9, 2008 Exhibit B: Planning Commission staff report of December 9, 2008 w/attachments D~-~s lam' ', ~ ~~~r~ ' . 75 GENTS ~ wESrvatlLev ~ ,o, MERCURYNEWS.COM ti~c~faal3Rs,zbols 11UESpAY SERVING NORTHERN CALIFORNIASINCE 1851 7NE NEWSPAPER OF SILN~NVALLEY South Bay cities a magnet for Asians u•; i .y, ti .. ,,/~~. S zY S :+~`~ ~ •• ~- x ~ `t;r ~ ~; :~ r~`d`j - ,~ . ~ K6~ ~~ ~ r r t(~~ ~~., t .~ „ . ,...t I $A aCla ~ ~ r ~,,, ~ ~ . - i ~~~ i l r ~ ~. ( ~t.. ,,i ;, ,;, ~ t . 1 \j ! t~l 1~;~ I~~~ ~ l ~ - ` 4~'~ ~ . y.;( "~ 'w ~. r''r^` ~.~ ' ~ l cdcc r it,: ~ -~ ~'~e t .. .. t~cFuvb n1E~cua' -• X i ~ l ~ ~' ~~ 'i "''~`G~q~bell t (. ~ • ,`, ; ~ l ~' -~\~ ~ ~ ~ ~ t3early all of the shops in CUpertltto Village shapppl if,dutlil centerare Asian r \ ' ' °t. i ~' * •- (~ 1 `} ? , the' MoMo Howe Asian 1. largestethn~group Saratoga -i, ~_~, + ~ ` ' ~~~ ~ "..., White ~ ~~ ~ ~ ~ .' - shop •'~ ~ ~ ~ l • {1 m ~ ~ ~ ~ i ' I "~ , Asian ._z.. x ~ ~ 1 a ~ ::$494 l :_...;i ~ SOS Ga1GS ~ ~ Q.Nispan~ ~ y ~ \ ~~a~ '~ .x,• ~ P~ent~`w~e~stnca2Q0o1_, U '~ ~`` ~'', ~', t,~; . XXX •~ `~ ;~ ' that e ~ .~' ~ ~ `• ..`l ~ faster the •.i Asian tRspan(c _ .. • :M~r~an il4 ~~ ~> ~~ ~ °cycte Sowce: Cmsrs euroau UEacuttY atws ~ r ~ :: :'ll. ~ - Sarat ~ ~ ~-.: ~ `` Altos V V l t ~ ~t `" , ~ ' 11, ~ . " Artier • itas no and Mil erti Cu - `~ ' Califs dian- p . p ian ma"orit~es A h ~` ~ ~ ' ~ ~~~ ~ ave s now _ r ~ 5, ~{ ~,: ~ e1r Make Swift . Vietmniese, Askrne now mtdce up ~ N f Mil it ' Af t l ~~' `~ ~~~ pole. crro p as rrra+D : near y 60 percen o Cupertino has joined Milpitas ulation. '„ l es the second city ht the Srntth Wlwt is happenhtg Utis decade itas attd Ca er itios tiles Mil h gid t 3t f h .t .. ` ~ ~ p p t c en s ere a m:,jot y o tro Bay w is partly raphers say demo he- lino ia rare cultural A i ~ , - ~ g , , p s n, n s nrnv . nome»on that sets tkte two cum- the culrtdtiation of yeah of im ~ ' ,nwtities a aft -even ni one of enigrntiott, as gtrowtng immigrant , the most diverse catmties ih the ConunuhiGes aCt A9 a potveifnl 4 coutiGy. nu~gnet, dtawing trolatives and otlr cultural coutforts and iw•ed b tf Chi h I y on was e<s t nese ppopppu ts already weR eatabhshed, but Cu- good a The economic dowrf pertino's rappidly growing Indian Gan after 2007 may well put the had its overall brakes on that owth however i h a z too MERCURYNEWS.COIA 7A C~S~S ~ A take of two valley cities: Con(inuedfrvrnPnge7 When Tatwattese im- mtgraht [ Gus I)ittg fitgt these-year period of 7AD6 moved to Cupertino in 197H, ~l~~~ 2007, the new census he and ht's filtnilyhnd to travel data sliowe to Redw'oud City o~'San I~l'an- - Cttiea .like Cupertino and c,sco for, good Chinese;' food. M1lpitae acre "really the ox- But tbe yuahty of flit: city's ceptidn,.MoCe ~~yApictdly what. ecltools'soors became`so well we have tit the state is a tnix, ° ltnown in'I4ttwan that Cuper- said Htttis Johnsdn;'a demog- tino's 96014 ZIP coda Became rapher with fife Public Policy commdt :' lmowledge therre, institute' of California. "And safd Bet'ntu'd 1'. Wo3ig; en att- it's not the bastCitust,wltite- thtropologiet at 3an'PYaticisco blackctiiic.It'sthe,WestCoast, State Univereityaud the au- Asiao-~athto-White, and to a ttwr of "17to inese' in Sili- leaser:exte»kblsctt;'mix." con Valley," StiiiiethtngeinSiGCOnVaI- Now -there afro so malty ley didn't ch¢nge: -Much of `C}tinese ' resttturanta attd the,valley defended its tadme ''stoees in Gfipectiuothat a vis- de la erne staGrs [n wealth itor from Shanghai, Taipei or and education, despite the Hong Kong would feet right economic .troller-coaster the trogion hea endured since the :.The Indian 0 Ulatfon Census Butrau last plumbed p P amAller cities' sochd and eco- more than doubleCd nomicstatus -to nearly 10,000. The r.as Altos and Palo Alto,. main reason, Cu ertino t espectively,wei•8 iunottg fife P top three piades among II.S. schools. cttiea .with 20000. people a• more with the ugliest median heuseltoid income: and with at home. In tl>e iwricingg tote of the largest ahare''oF adults .some Asiatrclotnlitated: sltop• with a taseter's'or doctoral tng areas such as Cupertino d Village, it's talmost : unpos- Botl cities were among Bible to findspark[iig:epot at a Itandtlil of Brty'Area cities lunch,. sa+d f)[ng 'ti tetirrod l .f U `' ~• m ntftaHmt tlurou ~ Wnue people ttrom't'attvart it-and-up . Ccwtt d , and Hong. were. ttie flrxt ce 1998 Pa1b Alto; Chinese in partino, the I.oe Gatos, Los` growth .inure recently has t Menlo Park were corns fibril ntalittand Cliittese. re only 19: ptac~ iu Meanwhile, tltd Indian a13 brit three in tattotl More than doWb t wlieire the me- ®ttce 2040 to neat'ly` 10,000. @ home was more The nwin re:asotL (,~pestino iillion. schools. weresotneamprises ; )for Patricia }tort, a i7-yew• d neiV dark since the Cu rtino resident who is Wads fnr' cities and :white, most of the' cha»~ea between 20,000 and that have: come tibiii having teopte. Airwng "the "bvely "lie ilrols"- who wro ~ wns the: city with ChmeseGln~anaidViehta>TM .acFaPnwin¢ white..: ese have been ztoeitlve-- in• po UlaponmpWCelt vauey, -cruuw nee ~rrv r~,y veuuta. 'dietmCt107t belotlg9 t0 a C3n11ogrA- East Palo Alto, once apre- phetralsofeels}leriddetne"eo da<minantiy Atl•ican-Amen-' much nioro was'ldly" lieeattae can city that is. now 66 per- of Cttpei'tino's divec~ity. But cent L¢tina, anil'includes a whde;two of hei'dtlttghtets stpaU: but gtoWlCig.wtrite and Uourislted hi the inci~eesingtY As{an' poptdatioti; as new re-, competitive schoolss,,l2ad had tail and residential develop- to eittbll; 2notlter of her chil- tnenta tievecome to tovin. dren m private actitjot.:: ' Mesiiwhile,-PHlo Alto, his- "It has.raised the:li®r edu- torically achy that wa.9 pre- cetionally for thd.kidato the do>»hiently white and has extent tliattho~kidswhoatro recently been roiled by racial high achievet~' do vety.well," tension over remarks by the Rnd said: "But thoselddawho police chief, had'ona of the' cannot aebieve titat,:`inuch valley`s biggest percentage. tend fo fall tri a cless`that is Increases 4t both' its Asian less than desirable, and don't andI.atinopoptilation. .succeed.", 8711piku ranked fifth aad' Cupertino llth in die United MetruryNewsStaJj`Writer States arpong plsrev whbi'e KeriMcLiarghlihcatbitarted Asians:made u '.the largest.' totGrsstory.CwjtucdlVft7te stt<u•eofthepopl~utlon,aecotd=. Stt>i,~t'Eit(4Q8)271?G48orat mg to the new census data,.. ` insmf/tQirrerrveyireri~s:ibnt, mnnnwt y s pus ~ Asian population to 66 percent of While Asians are close to heir residents, according to ne~v cen- the Iw~gest racial group in'sev .. . CEflSUS DEiAII Wewly released censris figures show sus data released today - Silicron Valley cities, the real story. orGvit of tuc w demo ra n f 20 b00 i th iti f l8 some surprises In Santa Clara County. ~ ' g p p , or n e e es o it one o just c ! more people in the crounGyiwltere CaltFarnia's nisi-size cites is that p~~ , ' Asians afro more titan halF of all ro single gaup commends the trosldents. All of those dties~ taro in mttjorKty, detnogts~hera say. San I.rt- e: Whites exam n i H ii J f i OMLWE Fj(TRA ,_ ., , p ose s o e awa . orn a or Cali Asians ahrondy were a nat~ linos and Asians werro all about 80 Flnd local news, photos, reader fonaris ark more for Cupertino and ocher South row maiotity in Milpitas In 2000, percent of the .population For the • but wi a growing pulatlon of ~ Bay communities in ourtvtyCttypagesat M'v+a'•mercurynews.com/crommunity. Rip[nos and SeeCEN5U5,Prigc7 Chinese, Indians, I t ' DR-~t Ambitious plans for corner in San Jose's Willow Glen -Silicon Valley /San Jose Business Journal: Silicon Valley /San Jose Business Journal -December 15, 2008 http://sanjose.bizjournals.com/san jose/stories/2008/12/15/storyl .htm I SiucoN ~a~ua i saN aosl~ usiness o~r~a Friday, December 12, 2008 ~ Modified: Monday, December 15, 2008 - 3:15 PM Page 1 of 2 Welcome, bethe@cuperti Ambitious plans for corner in San Jose's Willow Glen Silicon Valley /San Jose Business Journal - by Katherine Conrad San Jose Alex Byer is staking $a,o million to turn a nondescript Willow Glen corner into a picturesque public plaza at a time when many developers are either shelving plans or walking away from projects. "The street really now needs a kick in the pants," said property owner Byer of San , Francisco-based Byer Properties. "My main goal is to provide a centerpiece and a Vicki Thompson community gathering spot so that residents can enjoy it and not leave to go to Los New scoop: Willow Gatos or Santana Row." Glen Frozen Custard and Ice Cream has been in the same Byer proposes to create a plaza at the corner of Willow Street and Lincoln Avenue - in location for nine years the spot where Willow Glen Frozen Yo~,urt and Ice Cream Co. now sits. but will be leveled and rebuilt as part of a new Yogurt shop owner Jeff Mullen, once horrified that his $250,000 investment in his retail development. shop was all for naught, couldn't be happier. His shop will be part of the new project. Owner Jeff Mullen, once opposed to the "Alex B er is a man who could do what he wants -he's ve wealth ," Mullen said. Project, now looks y ~' y forward to opening in "But he chose to take the high road instead of the low road." his new location. View Larger Byer is a familiar face to Willow Glen residents. In 1997 he redeveloped the site where Jamba Juice Co. and Peet's Coffee and Tea Inc. now operate. As he acquired property, store owners have worried about the future of their establishments, especially the yogurt shop and historic Willow Street.Pizza. Sit-down, two-hour meetings with tenants during the past few months ......................................... addressed concerns. Now Byer aims to unveil his plans for the less than one acre of property he owns to the Willow Glen neighborhood on Dec. i~. Those plans call for constructing athree-story building that includes ground-floor retail and 26,000 square feet of office space on two floors, as well as a i5o-spot two-story parking structure in addition to the plaza. If all is approved, the tentative opening date is spring 2oi2. Mullen's tiny shop will be razed, but he will reopen just a few feet from where he now does business and he gets the choicest location in the development. At most, he will be required to close a month during construction, and less if everything goes right. "My store gets leveled," he said philosophically. "But I will say this, if something could come along that made our situation better, this is very close to it." The outdoor plaza will feature a fountain and cobblestones and offer a European atmosphere. Historic Willow Street Pizza will emerge unscathed. "Alex is doing it right, he's making a gift to the street," said architect Charles Kahn of Berkeley-based Kahn .................. D2-10 http://sanjose.bizjournals.com/sanjose/stories/2008/12/15/story l .html?t=printable 12/16/2008 Ambitious plans for corner in San Jose's Willow Glen -Silicon Valley /San Jose Business Journal: Page 2 of 2 Design.Associates. "This is not a development for sale, it's a real genuine pride of ownership. That is why he is willing to do it in very challenging economic times. He's developing for the long term, and that is just not happening in today's economy." Given the current economic climate, it does prompt the question, why now? Byer, who has cash reserves and will not need a loan, said now is the perfect time. "We are in a horrible economic climate," he agreed. "But the project will take time to go through the process. By that time, I'm confident things will improve and Willow Glen will come back and be very, very strong." Byer is no wide-eyed optimist. He is well acquainted with what retailers are enduring, and even he was surprised to receive notice that two tenants, the Mia Vincino restaurant and a liquor store, were closing. "It's very soft on the avenue," he said. "I talk to the tenants regularly, and I know that right now it's tough out there. We had the first two vacancies in our buildings. We haven't had any vacancies in many, many years, and we had two in one week." Byer and Kahn both believe that by building office space into the development, they will bring daytime customers, now a rarity, to shop in the stores. San Jose City Councilman Pierluigi Oliverio likes what he sees so far - in the proposal and its developer. "Alex is a person who retains property, he's not a speculator," he said. "He enjoys Willow Glen and he invests in it. He sees the opportunity to build a development that has much more sense of place." Byer knows that the Willow Glen community has a reputation for vigilance when it comes to development. He hopes the meeting will garner the support of the neighborhood. "Once everybody sees the quality of the project, the fear of change changes to excitement," he said. "We've come up with a project that is not menacing for the community. We've developed a plan that makes sense for the site." Katherine Conrad can be reached at 408.299.1820 or kconrad@bizjournals.com. All contents of this site ©American City Business Journals Inc. All rights reserved. '~ Ci,P,e,~~C ~~ tr~%~' ~~l,e, Gje,~-~~ -~Gl~~x- ~nt~~.. biz -r~ http://sanjose.bizjournals.com/sanjose/stories/2008/ 12/ 15/story l .html?t=printable 12/16/2008 SILICON VALLEY /SAN JOSE ,--- ..~- r r Sl ~~ ~ i ~ ~ ~ ~ ~~~ `~~ r ~ ~~~_ OEGEMBER 19, 2008 -air ',`~~ "` iC,"- i.` ~, ~ ~:~ ~ ~, a,x~ ~ ~s'?~ r ~ ' ' VOL 26, N0.34 X2.00 96 N. Third St Suite 109-. San Jose, CA 95112 Los Gatos host BV CATHY WESELBY LOS 6ATOS - El Camino Hospital in Mountain View is extending its reach into the West Valley. The nonprofit organization has agreed to buy the real estate and other assets to be determined from Community Hospital of Los Gatos from HCP Inc., a Long Beach-based health care real estate invest- ment firm. The new owner will pay HCP $45 million for the real YICRI THOMPSeN REYYEU UP: Richard Lowenthal, CEO of Ceulomh Technologies Inc., w01 launch at least five Smartlet charging stations in downtown San Jose. Charging ahead with plug-in stations BY LISA 51BLEY 5AN JOSE -Christmas week will bring a present to electric car drivers -they can start charging their vehicles through light posts in front of San Jose.City Hall. The city is planning to turn the blocks between Fourth and Fifth streets on Santa Clara Street into an eco-friendly test bed. This green test-bed area will enable other businesses to try out their products. Options being explored include the repaving of the sidewalk with green concrete made from recycled materials and solar cooling stations. Campbell-based Coulomb Technologies Inc. is pro- viding the products and sa.,rvices of the charging in- See PLUG-IN, Page 41 °' 1~ - L'7 Z- ;~r-'t-F1? ~-~~f~~'~t:?~aL~'1 P"f'~;~i~lw~ FlLE PHme HOSPITAL HAND-OFF: Community Hospital of Los Gatos, built in 1962 and in need of modernization, will become part of EI Camino Hospital an June 1. PLUG-IN: Company also plans to install stations at truck sto s with shi ments s ' p , p tarting in January CD NTINUED FROM PAGE 1 frastructure. The company is rolling out at least five Smartlet charging sta- tions, including four in the City Hall block and one in the San Fernando. and Fourth Street garage. As part of a two-year, public-private partnership, the company is donating the equipment and the city is install- ing the stations. "If they like it, they could buy it," Coulomb .CEO Richard Lowenthal said. "This is to roll it out and show this is one of the tools in the green toolbox." The city of San Jose is the first in the nation to put in these charging sta- tions, said Lowenthal, adding that the company has a small backlog of orders for the stations, which will begin ship- ping in January. Sustainability Officer Laura N Stuchinsky, in the city's Department ~ of Transportation, said the pilot proj- ~ ect with Coulomb gives San Jose the chance to see the charging stations tested in areal-life environment, what challenges come up and how to make them convenient for drivers. "We need to figure out how to have the infrastructure in place once we have more of these vehicles," she said. This will encourage the development of cleantech jobs, she added. The city isn't the only municipality interested. Will Kempton, director of the California Department of Trans- portation, highlighted the state's need for everything from electric to hydro- gen fuel stations. He added he wants to privatize the state's nearly 90 rest areas. This would allow AT A-6LANGE them to put Cep in services in- T ~ cluding alter- native fueling ~~ capabilities qy~{;{~ ~; Bectrio-car where compa- nies like Cou- ~; lomb -which ~ he's met with ~ ; 30 -could ben- yy~ ~; efit. They are ~~ awaiting fed- eral approval to move for- ward with the project. Lowenthal added that Coulomb also has plans to install at least 40 stations at places such as truck stops along state Highway 99, U.S. Highway .101 and Interstate 5, with shipments start- ing in January. He was not ready to release the customer's name. He did say Coulomb is in the pro- cess of closing a $3.5 million Series A financing round from individual undisclosed investors. Lowenthal said it will be seeking a conventional fund- ing round of $5 million plus debt or $8 million to expand manufacturing capabilities and drive the company to- ward profitability, which is projected for 2010. Ready, set, charge Each Smartlet charging station will be controlled through a wireless sys- tem, which the company has been fine-tuning. The system provides user authentication, usage monitor- ing and real-time control. Users can subscribe to the network and receive an RFID key fob that allows them to charge their cars at any Smartlet station. Lowenthal, a former mayor of Cu- pertino, said pulling power out of an .existing light poll was a nondisruptive solution for the city: The Fourth Street garage is also the site of a similar en- deavor 10 years ago, under a require- ment from the California Air Resourc- es Board. This time, though, Lowen- thal said the stations aren't coming from government mandates but are - being driven by public demand. The startup plans to generate rev- enue byselling the charging stations to municipalities and parking lot owners as capital equipment. It will also profit by charging plug-in access through a subscription service. Lowenthal sug- Bested that a transportation tax on electricity as a fuel will also become necessary. Green vision agenda The idea of a charging network re- inforces the city's cleantech goals. On Dec. 12, Mayor Chuck Reed hosted lo- cal, state and federal representatives for a cleantech policy discussion to help guide the formation of the 2009-10 cleantech legislative agenda, outlining priorities the city will adopt to help develop the sector. Lowenthal said his company is working to meet the city's green mobility priorities by designing, manufacturing and installing Cou- lomb's technology in Silicon Valley. The startup's goals also fit into a plan San Francisco Mayor Gavin Newsom, Oakland Mayor Ron Dellums and Reed announced last month to transform the Bay Area into the "Electronic Vehicle Capital of the United States." Palo Alto- based startup Better Place, which is building electric vehicle networks pow- ered by renewable energy, is leading the effort. The company estimates that building a charging station network to support putting battery-powered autos on the road in 2012 will cost about $1 billion. LISA SIBLEY can be reached at 408.299.1841 or Isibley@ bizjournals.cam. ~~ ~~4~ ~ ~,: DECEMBER 19, 2008 VOL. 26, N0.34 The Second Front sanjose.bizjournals.com THE BUSINESS JOURNAL $ Mervyns' exit presents opportunities BY DAVID 60LL Mervyn's LLC stores at busy shop- , ping centers throughout Silicon Valley will soon be vacated by the bankrupt retailer, presenting new opportunities for developers. Commercial brokers and city officials say different uses may be considered for at least some standalone-store sites. One of those is the Campbell Mervyns store at 950 W. Hamilton Ave. that sits on an 8.5-acre site. Other Mervyns stores, such as the one in Cupertino Crossroads shopping center and Mervyns Plaza in Santa Clara, are attractive to retailers because of their prime locations, according to David Taxin, partner at Meacham Oppen- heimer Inc., a commercial brokerage based in Campbell. ~~ "Kohl's is looking in this area, and it's possible they will consider more Mervyns stores," Taxin said. Many of Mervyns' leases in this area are now short-term, with five or 10 years remaining, Taxin said. Kohl's would want fo work with landlords to secure longer leases. The Cupertino and Santa Clara stores are especially attractive because no existing Kohl's stores are nearby. In an environment of relentless in- dustry consolidation, city officials are trying to be realistic about their rede- velopment prospects. "We already have a Kohl's in town, and the Mervyns lease here is not an attractive one," said Kirk Heinrichs, redevelopment manager for the city of .Campbell. "Another challenge for us is that most major retailers don't favor standalone locations: ' Heinrichs said the city will authorize a "professional analysis of the highest and best use of the property, and what is in our best interest" - Taxin described the Campbell store ~ as occupying an "in-between" spot ,K = a standalone location sandwiched IK between major retail centers -that ,n makes it unattractive to retailers. "It could be a good residential site," he Ic said. i!' Terrence Grindall, community de- ~~ velopment director of Newark, said his medium-size city will soon have two i~ empty Mervyns stores. Mervyns in January shuttered its two-story anchor location in NewPark ;Mall -which remains vacant -and 1 I~!!' ~ ' ~ f: ~ ~: ~, q 1~: ~~ ~ ~r • ~~ ~ VICKI THOMPSON SPACE SHIFT: The 8.5-acre parcel that held the Mervyns in Campbell could take on a new use, such as a residential site. opened a new 80,000-square-foot loca- tion in a small center across the street at 880 Mowry Ave. just days before the retailer declared bankruptcy July 29. "We have a Kohl's down the road at Pacific Commons (in Fremont), and Forever 21 just opened a new store at NewPark Mall," Grindall said. "When- ever we have a new retailer come to town, I like it to fill a gap in what we have to offer shoppers, which right now includes electronics and a major book- store. We will see if we can make that happen:' A joint effort of former Mervyns' arch rival Kohl's Inc. and women's apparel retailer Forever 21 Inc. at a leasehold auction Dec. 11 netted the two retailers 46 Mervyns stores -including loca- tions in Capitola, Salinas, Hayward and Millbrae -for more than $6.2 million, pending approval of the court oversee- ing bankruptcy proceedings for parent company Mervyn's LLC of Hayward. Kohl's will take 31 of the stores - most in the Los Angeles area and Cen- tral Valley -and Forever 21 nabbed a total of 15, including one at Northridge D Q -1 ~-i- Mall in Salinas. Other Mervyns locations will be considered for purchase, according to Kohl's officials. Besides the stores in Campbell, Cupertino and Santa Clara, there are two Mervyns stores in San Jose and one each in Mor- gan Hill, Milpitas, Newark, Mountain View and Redwood City. "We are in discussions for other select Mervyns locations," said Kris- ten Cunningham, spokeswoman for Kohl's, based in Menomonee Falls, Wis. "We will be opportunistic but also disciplined and selective as real estate becomes available: ' Many Silicon Valley cities already have Kohl's stores, opened when the fast-growing, retailer that now has more than 1,000 locations nationwide expanded into Northern California in 2004. In the current economy, Mervyns' closures leave local offi- cials fretting about the loss of highly prized sales tax revenue. DAVID 60LL can be reached at 408.299.1853 or dgoll@ bizjournals.com.