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Director's ReportCUPERTINO CITY HALL 10300 TORRE AVENUE CUPERTINO, CA 95014 ~~~ TELEPHONE (408) 777-3308 '`~~,~. FAX (408) 777-3333 CUPERTINC~ DEPARTMENT OF COMMUNITY DEVELOPMENT Subject: Report of the Community Development Director~"'"~ ~~ Planning Commission Agenda Date: Tuesday, October 27, 2009 The City Council met on October 20, 2009, and discussed the following item(s) of interest to the Planning Commission: 1. Sign Ordinance -The Council approved the proposed Sign Ordinance Amendment per the Planning Commission's recommendation with additional minor changes relating to eliminating language redundancies and improving clarity. The Council did reduce the allowed maximum area for non-residential real estate signs from the proposed total of 64 square feet to 32 square feet per face, as it currently exists in the Ordinance. Miscellaneous Items: 1. Block Leader Bus Tours -Thursday, October 1, 50 block leaders participated in bus tours of Cupertino that provided overviews of the city today, as well as interesting fact and figures from the past. The tours, lead by Steve Piasecki & Aarti Shrivastava, and accompanied by Kelly Kline, made their way to some of the major shopping areas and business parks in Cupertino, and on to city parks and neighborhoods. We have received very positive feedback from the block leaders, including comments below: "We so enjoyed t11e Cupertino bus tour yesterday. It reminded us of zz~hat a beautiful city zve live in. And noun we'll have the answers to more of the questions that use get from our neighbors." "Thank you so much for arranging the bus tour! I really found it interesting, and I thought I knew a lot about Cupertino beforehand. Steve was an excellent tour guide and Kelly and Aarti were informative and interesting. I thouglTt the breakfast was certainly a nice touch, and very good. The handouts were good teaching tools, and I'll add them to my Block Leader info. Thanks again for all the work you did to make the tour possible." "It zc~as an interesting tour, learned a lot and sazv a lot of places that I have never been too (Regnant Road). Steve seems to know the Izistory of Cupertino very well. I still think that Kelly is a great addition to the city staff." 2. Parking Permit Application and Renewals Online - We launched a new online permit application (latest in our eGov offering). Now Cupertino residents living in permitted parking areas can apply for new or renewed parking permits and guest permits online. The residents who currently have passes that expire on December 31 can apply for renewal of their permits online. Residents will receive a parking permit for each vehicle per address. New residents will be required to submit two forms of proof of address (utility bill /car insurance bill / DMV auto registration). After verifying their residency, Public Works will mail out the new parking ~~~ Report of the Community Development Director Tuesday, October 27, 2009 Page 2 „Pr„-„+s, which will he valid 1zet~ntPPn Tan„arv 1, 2(11 ~ and I~ecemher :~1, 2011. Residents can apply for new or renewed parking permits online at www.cupertino.or~/parkingpermit. PrevieuslT, a11T ec~nle~ r~ roximatelT,~~~ hn„~Phnld.Sl were renuired to come into City Hall to complete this same transaction. 3. Mandarin Business Class - On October 7, the City hosted a very successful Mandarin Business Class in partnership with the Cupertino Chamber's Asian American Business Council (AABC), SCORE, and NOVA at Community Hall. Attendance far exceeded expectations with 60 participants. The 2-hour class was free and was titled "Should I Start a New Business?" The class, and corresponding materials, was completely in Mandarin with instruction provided by Vicky Tsai, a Cupertino small business owner and Chamber member. The course addressed topics such as requirements to succeed in business and steps to getting started. Evaluations were overwhelmingly positive. Publicity leading up to the class was also positive, with an article in The World Journal and an interview with Vicky Tsai on the popular "Talk Tonight" show on KTSF, Channel 26. The World Journal article credits the City for partnering with business organizations to make this event happen. This event shows tremendous demand for business resources that are presented within a cultural context. Future efforts are being evaluated by the AABC, and may include teaching this class on a bi-annual basis, and offering an all-day "How to Start a New Business Class". The Milpitas Chamber has expressed interest in being a future partner. 4. Park User Survey -The park user survey regarding a trial for an unfenced off leash dog area at Memorial, Library, Jollyman, and Linda Vista began Monday, October 12. A De Anza College Political Science class is conducting the intercept survey as a community service project. The volunteers will have official surveys developed by Godbe Research Associates. Volunteers will have identification badges. The schedule is at follows: M-Th 7 - 9 AM F-Su 9 -11 AM Su-Sa 4 - 6 PM The surveys will go from the students to Godbe Research and will be tabulated with the household surveys. The household surveys were due October 10. The park user surveys will continue through November 13. 5. Rotary Housing Corporation -Attached are two documents received this month - a letter to the mayor thanking him for meeting with representatives of the Corporation and minutes of the October 6 meeting of the Corporation. 6. Cleo Property -Habitat for Humanity recently underwent some internal restructuring, which delayed its project here in Cupertino. They have a new development manager, Hector Burgos, and a new Executive Director, Jennifer Simmons. Both are eager to get moving. Lots of work is happening behind the scenes. They are currently finalizing floor plans, elevations and the parcel map for the project and are expecting to file for a use permit by the end of the year. T11e final approval should go to Council in late December or early January. ~~ ~a Report of the Community Development Director Tuesday, October 27, 2009 Page 3 7. October 13~ Storm -There were approximately 100 tree-related incidents - 20 downed trees and 80 branches down. There were five storm drain blockages: one collapsed line on Miller @ Calle De Barcelona and three clogged lines (McClellan @ Clubhouse, McClellan @ Mira Vista, and San Juan @ Cordova) and one surcharged cover off frame at Regnart Road. We had several staff working after shift. We scheduled one 3-person tree crew and one 2- person cleanup crew to come in at midnight and work until the beginning of shift. We also scheduled one person for storm drain patrol and one person to answer calls. 8. Sorts Center Tennis Li hg ting -Attached is a letter to Dave Knapp and one to Ed Hirschfield opposing the proposed additional lighting on the tennis courts at the Sports Center. 9. Citywide Emergency Drill - A citywide drill took place on October 17 & 18 to test the effective use of volunteers in an emergency. Our office of emergency services activated all volunteers from CERT, CARES, and MRC during the two day, 16-hour exercise. Block Leaders, Neighborhood Watch, Boy and Girl Scouts, and Interact were invited to help volunteers accomplish their goals by passing out information to each household in only 16 hours. All six of the City's Emergency Information and Resource sites (ARKS) were open from 10 AM to 8 PM on Saturday and 12 to 6 PM on Sunday. The public was encouraged to stop by and become familiar with the location, functions, and capabilities of the ARKS. 10. Lehigh -Regulation of the Quarry is beyond the City's control, yet its operation and impacts concern many of our residents. Council asked that staff suggest ways that the City could help our residents without becoming a target of the animosity many of them feel toward the Quarry and Plant. Since the quarry announced the restoration plan amendment in December of 2007, the City has actively promoted public awareness and engagement on this issue. More than any other involved agency, we have used our website, newsletter, press releases, radio, and even our community notification system to notify residents. We have included on our website a responsible agencies listing, with contact points, for the various aspects of quarry & cement plant operations. A copy of that listing is attached. Some possibilities for city involvement include: We could seek clarification from the various regulating agencies as to roles, actions, and alternatives that are available to our residents, for example: o The Bay Area Air Quality Management District (BAAQMD) has local regulatory authority for stationary sources of air pollution. The Environmental Protection Agency also uses BAAQMD monitoring to assess compliance with federal regulations. o The County Planning Department is responsible for monitoring compliance with reclamation plan requirements. County Counsel could be asked to explain the legal basis for the County responsibilities concerning the Surface Mining and Reclamation Act of 1975. ~-3 Report of the Community Development Director Tuesday, October 27, 2009 Page 4 renewal process for quarry and cement plant use permits. the quarry and cement plant. Supervisor Liz Kniss represents supervisorial district five, within which both the quarry and cement plant are located. Supervisor Kniss also serves on the BAAQMD board of directors. • We could work, with regional bodies (BAAQMD) to request a special taskforce to review quarry and cement plant air quality compliance. Council members could serve as local representatives on such a taskforce. • We could continue to promote annexation. This issue may be broached, advocated, and promulgated on all occasions calling for resolution of this issue by the City. • We could facilitate community engagement with appropriate regulatory entities through coordination with Access Cupertino. This will allow for tracking of specific issues, concerns, and document responsiveness of involved agencies. All these actions carry costs, and it will be difficult to work on the issue without becoming the issue. 11. Attached are two articles related to Cupertino Square. Upcoming Dates: Oct 24 Cupertino Library's 5~~ Anniversary Celebration, 10- 4 pm, Ceremony 11:30 am Nov 3 Election Day (no Council meeting) Nov. 30 Possible Council meeting if the regular meeting of November 17 is cancelled Dec 1 Council Swearing in Ceremony Enclosures: Rotary Housing Corporation letter & minutes Sports Center Tennis Lighting letters Lehigh Responsible Agencies Listing News Articles relating to Cupertino Square Sign Ordinance Staff Report G: ~ Planning ~AartiS ~ Director's Report ~ 2009 ~ pd10-27-09.doc ~~~~ 'K c-.____ ~...._.~..__._._-~___ s,~ t ~ t ' S , ~-k- r~Ti~h. ~'~_~ e „y t ~' .-~3' ~ .. .t .F~ -.. o ~ .~%s~`t` .. - Officers Richard Lowenthal, President Kathy Nellis, Vice-President John Giovanola, Treastucr Jim Jackson. Secretary E3oard of Directors Don .Allen Steve .Andrews Jim Black John Giovanola Jim Jackson Richard Lowenthal Naonu A~tatsumoto Kathv Nellis Scott Stauffer Steve Ting Jim 1~'alker "The Cupertno Rotary Housing Cor- poration is a t ax exempt California public benefit corporation recog- nized as an Internal Revenue Code §501 {c)(3) organization. Its mission is to support the expansion of afford- able housing in Cupertino and the surrounding area" 10455 Torre Ave. Cupertino CA 95014 Phone: 408-252-5211 Fax: 408-996.7045 Tax ID number 27-0144517s October 7, 2009 Honorable Orrin Mahoney, Mayor of Cupertino, l 0300 Torre Ave. Cupertino, CA 95014 Cupertino Rotary Housing Corporation Mr. Mayor: hank you for meeting with us yesterday concerning the Mary Avenue oject of CR.HC. «~e support the idea of having a study session on our ans and welcome the chance to address concerns that the Council, staff community members may have about it, ode have requested a Memorandum of Understanding between the City nd CRHC so we could proceed with our non-profit financing plans with ssurance that the City is, in principle, supportive of the project, while at. `Te same time is reserving final approval depending on all of the usual °quirements that the City must go through such as zoning, use permit, tc. nee our plans for funding include applying to the State of California r Tax Credit Allocations, there is a time schedule which the California tx Credit Allocations Committee has established and which we want to ~ to meet. This requires that our project be ready for application on arch 25, 2010. We think it would expedite the process for both CRHC d the City if we could ask you to prepare apro-forma draft of a emorandum of Understanding. his should make it clear to the cornrnunit}~ that this MOU does not bind to City to a future approval of the specific project; and also allo~~~ us to ;e if this MOU would meet the requirements of the State Tax Credit location committee as to site status. ~~~ MINUTES OF MEETING OF THE OF ING CORPORATION A California Nonprofit public benefit corporation October b, 2009 The Board of Directors of the Cupertino Rotary Housing Corporation held a meeting on October 6, 2009 at west Valley Community Senjices,10104 Vista Drive, Cupertino. Present were Jim walker, Scott Stauffer, Jim Jackson, Kathy Nellis, Don Allen, and Richard Lowenthal. Absent were Steve Ting, John Giovanola, Steve Andrews alld Jim Black. Guests in attendance were Carol Atwood and Steve Piasecki. • The meeting was called to order at 5:00 P.M. by Richard Lo`~-enthal. • The Board discussed the status of the project and various meetings and communications that have been held or are being held ~~vith members of the Cit}~ Council, City staff, community members and outside organizations • The Board agreed to ask the Council to conduct a stud}~ session on our request for a Memorandum of Understanding on the project in late November after the Council elections, and then to hold a voting meeting in Decemher after installation of the new Council members and officers, Richard Lowenthal, Kathy Nellis and Jim Jackson reported that they had met with Manor It-gahono}r earlier that day and he u~as in agreement with those requests. • The Board also discussed Mayor Mahoney's thought that this Project could be structured as a partnership bet«reen CRHC and Cupertino so that surplus revenues, when and if they occurred, could be shared in some fashion with the Cin~. The discussion consensus was that this should be further discussed but that the major agreement was that any such future revenues should be deg oted to charitable causes in Cupertino, which could include future affordable housing projects. • Jim Jackson agreed to send a letter or e-mail request to the City asking that it prepare adraft orpro-forma of a Memorandum of Understanding so the Council and this Board could start reviewing the terms before the final vote on the MOU. • Scott Stauffer will prepare a ~~~rite up with talking points about the project and Council concerns such as parking. • Jim walker «rill meet and talk to De Anna about its past assurances that it has adequate parking far its needs. The Board expressed concerns about the effect this project might have on De Anza's Flea Market parking and how those concerns might be addressed. • The Board designated President Lowenthal. Dan Allen and Jim Jackson to .. sen-e as a finance committee to work on the various funding options for the project. This Committee asked Carol Atwood to meet with it to revie«~ the City's participation in the options. The Board will also ask Kathy Robinson to meet with us to go over how she might help in funding. DQ 7 To : 'VIr David W. Knap~r City Ivl~nagei• Cupertino California Front : Tornasz Glinka, 21122. Patriot Way Cupertino CA 95014 This letter' is in response to repeated inquiries by 't1r r.d Hirshteld of Cupertino Sports Center to the o~~mers of properties alone the southern side of Patriot \~'ay regarding i~ur position on proposed addition of lighting to the tennis courts located bet~~~een Stevens Creek Road and the perimeicr of Commons of Cupertino complex. We would like to state our strong objection to any plans of extendira~~ the use of tervlia courts directly neighboring our complex until late evening hours. Present use of these courts is already burdensome due to the fact that noisy tennis classes for children happen vet~y~ often at this very part of tennis center. Addition of lighting to this part of terulis centea• would cer•ta.inly expose occupt~nts ofthe above mentioned properties to even longer periods of daily noise. Moreover, regardless if the courts are mi,ved a~~~ay by a short distance from our properties, or ho~v the court lights arc positioned their installation would certainly add large amount of light pollution to our residences. Intrusive bright lighting from neighboring tennis courts spilling over to our properties would undoubtedly spoil the pleasures of late evening rest in the backyard that every owner of a house values so much. As a result the values ofour properties ~~~ould certainly be negatively affected. The.-retire all owners of the properties listed bc]ow arc unconditionally opposed to the proposed addition i,f lighting to the neighboring part of the tennis complex., For the. o~~~ners of the properties: 1. Tomasz G1irlka, 2. Margaret Cii~odrieh, 3. Alisa Rauch, 4. Pariba Alikhani; 5. Jerry Chiu, 21 122 Patriot \'v'av 21 132 Patriot. ~~'av 21142 Patriot ~'~'ay 21 152 Patriot ~'~'ay 21162 Patriot ~~'ay I am in possession of copier of this letter signt:d by residents 1-4 listed above. 1 obtained verbal support from Mr Jerry Chiu in phone conversation. Tomasz Glinka _ GI ~• - -~ Qciobez l 3, '?009 Dear.Ivtr Hirshfeld, This letter is in response to repeated inquiries to the o~~rners of properties along the southern side of Patriot VJay regarding our position on proposed addition of lighting to the tczuiis courts located between Stevens (.'reek Road and the perimeter of Ci~m.mons of ~Ciipertino complex. X~Ve would like to state our strong objection to any plans of~ extending the use of tennis courts directly neighboring our complex until late evening hours. Present use of these courts is already burdensome due to the fact that noisy teruzis classes f~~r children happen very often tit this very part of tennis center. Addition of lighting to this part of tennis center-would certainly expose occupants of the above mentioned properties to even longer periods of daily noise. Moreover, regardless if the courts arc moved- away by a short distance from our properties, or how the court lights are positioned their iizstallation would certainly add large amount of light pollution to our residences. Intrusive bright lighting from neighboring tczulis courts spilling over to nur properties ~~~ould undoubtedly spoil the pleasures of late evening zest in the backyard that every o«-ner of a house value; so much. As a result the values of our properties would certainly be negatively affected. 'I7~erefore all owners of the properties listed below are unconditionally opposed to the proposed addition of lighting to the neighboring part of the tennis complex. A copy of this letter was also sent to Mr David hr:app; City Manager For the o~~•ners of the properties: 1. "I'omasz Glinka, 2. Mtu~garet Gooch-ich, 3. Alisa Rauch, 4. F'ariba Alikhani, ~. Terry C.'hiu; 21122 Patriot 1~Vay 2l 132 Patriot. ~~'ay 21142 Patriot Vday 2l 152 Patriot Vl'av 21162 Patriot ~~`av I :un in possession of aspics of this letter signed by residents I-4 listed abc.~vr. 1 obtained verbal support from I~1r Jerry Chiu in phone conversation. Tomasz Glinka ~-f' J~~ ~~--~ 0 Following is a list of contacts at the various agencies which monitor and regulate the eiae~f erb g~Lehig uarry an emen an : ----_____.______________________________.____. eglona • Bay Area Air Quality Management District -attains and maintains air quality standards, increases public awareness of positive air quality choices. o General Site: http:/Iwww.baagmd.govl o Public Notices: http://www.baagmd.gov/pmt/title v/public notices.htm#santaclara • Santa Clara County Planning -plans and reaulates land use and development within the unincorporated portions of Santa Clara County. c wtivw.sccplanning.orq SF Regional Water Quality Control Board -develops and enforces water quality objectives and implementation plans that will best protect the State's waters. o General Site: http !iwww swrcb.ca gov,'rwgcb2r' c Public Notices: httpa/www.swrcb.ca.gov/sanfranciscobay!public notices/public r~~otice.shtml o Public Records: http~//wwyrswrcb.ca.gov/sanfranciscobaVlabout uslpublic request shtml Santa Clara Valley Water District -acts as the county's vdater wholesaler, but also as its flood protection agency and is the steward for its streams and creeks, underground aquifers and district-built reservoirs. o General Site: http:Uwww.scvh~d.dst.ca us/ o Permanente Creek Info: http:l/www.vallevwater.orq/VUater/'JVatersheds - streams and floods/Watershed info & proiects(Lower Peninsula;Penr~anente Creek/index.shtm • Santa Clara Environmental Health -reflects the continued assessment, preservation, and improvement of environmental conditions and circumstances that affect the health and safety of the community. o www.ehinfo.org State Office of Mine Reclamation (OMR) -Created in 1991 to administer the Surface Mining and Reclamation Act of 1975 (SMARA). Established to meet the Act's requirement, OMR provides assistance to cities, counties, state agencies and mine operators for reclamation planning and promotes cost-effective reclamation. o General Site: http:!/www.conservation.ca.gov/OM Rr'Pagesilndex.aspx o Reclamation: http //www.canservation.ca.gov/omr/reclamation/Pages/index.aspx o Notices: http://www.conservation.ca.goviomriofficial notices/Pages!index.aspx • California Air Resources Board -Attains and maintains healthy air quality, conducts research into the causes of and solutions to air pollution. o General Site: http:ilwww.arb.ca.gov/homepage.htm o Public Comments: httpa/tvww.arb.ca_gov;lispublcomm;bclist.php o Public Records: hl~a/www.arb.ca.qov/html/pubrecsguidelines.htm o Online Services: http.//www.arb.ca.gov/html/databases.hU» • Water Resources Control Board -preserves, enhances, and restores the quality of California's water resources, and ensures their proper allocation and efficient use for the benefit of present and future generations. o General Site: http:J/www.swrcb.ca.gov/ ~~~! I financing and delivery of individual health care services. o General Site:' httpalwvdw.dhs.ca.gov/ • Integrated Waste Management Board - promotes a "Zero Waste California" in partnership with local government, industry, and the public. o General Site: http://www.ciwmb.ca.gcv/ o Public Participation: http://www.civdr~b.ca.gov/Particlpate.htm • Board of Equalization -collects California state sales and use tax, as well as fuel, alcohcl, and tobacco taxes and fees that provide revenue far state government and essential funding for counties, cities, and special districts. o General Site: http:!lwww.boe.ca. ovi • Fish & Game -maintains native fish, wildlife, plant species and natural communities for their intrinsic and ecological value and their benefits to people. o General Site: http://www.dfq.ca.govi • CAL-OSHA -protects workers and the public from safety hazards through ats Cal/OSHA o http:;/vrww.dir.ca gov/dosh/ Federal • Environmental Protection Agencx -leads the nation's environmental science. research, education and assessment efforts. c http:!i~vvvw.epa.gov/ • U.S. Fish & Wildlife -works with others to conserve, protect, and enhance fish, wildlife, and plants and their habitats for the continuing benefit of the American people. o http://www.fvrs.gov/ • Mine Safety and Health Agency -enforces compliance with mandatory safety and health standards as a means to eliminate fatal accidents; to reduce the frequency and severity of nonfatal accidents; to minimize health hazards; and to promote improved safety and health conditions in the Nation's mines. o http://www.msha.gov/ • U.S. Geological Survey -provides reliable scientific information to describe and understand the Earth; minimizes loss of life and property from natural disasters; manages water, biological, energy, and mineral resources; and enhances and protect our quality of life. o http://www.us scLgov/ p,2-i a The News s THE BUSINESSJOURNAL san~ose.biz~ournals.com Cupertino Square deal brings new owners, returns to of ~Y KATHERINE CONRAD feet. For the ast few ears the mall has P Y , been threatened with foreclosure an '- d fi CUPEHTINO - Vallco Fashion Park is back nally went back to its lenders, Gramercy and under new ownership. and United Commercial Bank, earlier In a deal that closed in September, Son this year after defaulting on a $113 mil- Son Co., a Vietnamese food processing en- lion construction loan. City, paid $64 million for the SO-acre Cuper- The 33-year-old mall, anchored by JC- tino Square in an all-cash sale, according Penney, Sears and Macy's, is just 59 to San Jose businessn~vi Lap Tang. percent occupied, posing an even bigger "The property itself is valuable, but problem beyond the vacant storefronts. because there is so much empty space AMC Theaters does not have to pay rent they were able to make a deal," said as long as the mall is less than 65 per- Tang, who arranged the transaction. cent occupied. "This is a good buy. At one time it was It will take time to lease another 6 per- appraised at $200 million: ' cent, but Tang is confident this group The new owners of the mall on North will succeed and AMC will start paying 1 Wolfe Road decided to keep the old moni- rent again. ker and spruce up the towering sign that Tang, who is also developing Vietnam was never removed despite the name Town in San Jose, said he began shop- change. ping the former Cupertino Square in Tang said Son Son, owned by Tram Be early summer, telling Vietnamese in- of Saigon, bought the property directly vestors that for anyone with money, this from Gramercy Capital Corp., which took was a good opportunity. ownership of the mall from Orbit Re- The developer said he suggested re- sources Inc. The New York firm's CFO, naming the mall Vallco. Jon Clark, refused to confirm the sale. "People call it Vallco no matter what," Brokers from Jones Lang LaSalle, BiIJ Tang said. "So I recommended the old Huelsman and Sherri Luslc, who han- name. Thirty years ago, it was the best died the leasing on the property for two mall in town:' ' months over the suininer, also refused He does not, however, recommend to comment. redesigning the mall with an Asian CJ Jackson, acting general manag- theme. er for the mall, would confirm only "Right now the market is saturated the name of the new ownership: Vallco with Asian centers," he said. "I told them Shopping Mall LLC. to keep it open to the general market: ' And so a new chapter opens for the long-troubled mall, which is one of the KATNEBINE CONRAO can he reached at 408299.1820 or largest in the region at 1.2 million square kconrad @ bizjoumals.com. .~. +A~l)* 'Y ,.^ ,~ I~` ,.~ i. f* ' a~ . r ~ ~. ~ I. ~~ .. I ,~r~. ~,~~~~. i ;~ ~"~ i'•µ w~^; ~i ". ~:~~~ ,~:~t~~ n BER 16, 2009 ame . ~ + .. ,, r ' ~ir~~. ,~ rt r k ~~ ,~ ~ ~+.. ,~ ' ",~ w „ r, ~. , ~ a ~~, ~~ , ~ M _ r; ~~a ~ ;~~. ~ :. , ~ 1 ~. ~~~ ~h ~'F" r: 1. ~~~,,~, ~~ ~~r~~~ G9 i'yr ,.~ ~~,~, ;dRr ~~~ ti • a ~ ~0ra~~ ~, , ~ ~ Yt 1 j A. 64M SALE: The 50-acre ro ert which was known for a short time as Cu ertino p p Y p than 200 million was sold far far less than that in an al)-case deal in Se tember.. P and was FILE PNOTO appraised at more CUPERTINO MALL BEING LIQUIDATED AFTER THE LENDER FORECLOSES ON IT Gramercy is new property owner B.y MATT WILSON Following months of litigation and bank- ruptcyhearings, the 1.3million-square-foot Cupertino Square. shopping mall is in the process of being liquidated. Acourt-appointed trustee is overseeing the liquidation of the mall's assets and is dis- tributing. appropriate funds.to the owed creditors, according to bankruptcy court doc- uments. "lt's a cleanup phase," said .Barry Mil- grom, anattorney for the trustee. ~ Gramercy Warehouse Funding I LLC now owns the property at 1023 Wolfe Road. ~-~-Tlie New York-based lender foreclosed on the property andpurchaseditfor $65 million at a trustee sale in May. Mall owners Cuper- tino Square LLC and Vallco International Shopping Center had failed to make ~de- quate praectionpayments of approxiiriate- ly $7$0,000 to GramercyinMarch andApril after filing Chapter 11,according to Richard . Lapping, who represented Cupertino Square in bankruptcy court. Orbit Proper- tiesLLC was the main stake holder in prop- erty. Tlie bankruptcy court converted the case to Chapter 7 and ordered the mall's liquida- tion onJune 26. Gramercy gave Cupertino Square mall owners a $195 million construc- tionloan in 2006 and claimed the owners still owed them $113.8 million. According to a Sept.28 report from Little Saigon Inside, a San Jose-based news blog, a real estate tycoon fromVietnam could now own the largest stake in the Cupertino Square property. According to the report, ~/' Mall, page 15 ~upertino ~~~~ ..,.u...,. ., ..umber 44.October 2I, 2009 • Cupertino, CA • L-st. t947' NE WS . ~ /~ ~~ ping .Center, LLC since early ~ l~/1 2008, when- Cupertino Square owners sued Gramercy in Superi- Continued from page 1 or Court for breach of contract. Gramercy countersued for mall • Tram Be, 50, is investing $60 mil- mismanagement and started fore- lion inthe property. closure proceedings. Attorneys fo.r Gramercy would Those cases were absorbed into not comment, but according to bankruptcy court when Cuperti- • Milgrom, a judge would have to approve any sale since legal issues no Square filed for Chapter 11 in regarding the property are still September: 2008. In June, a por- • pending in .both superior and tion of the case relating to claims bankruptcy courts: There is no by.and against guarantors of the report of such a transaction in the loan in the case was remanded court documents. back to Superior Court. The case is set to go back to the Gramcery is demanding that Northern District of California the case be heard in superior bankruptcy court on Nov. 12 to . court, according to bankruptcy determine whether some claims court documents. • should be sent back to Santa A status review of the case is Clara County Superior Court or if the cases should be consolidated scheduled. in superior court on • and settled iti bankruptcy court. Dec. 17. - Legal problems have been Cupertino Square accounts for ongoing between Gramercy and one-third of the city's retail space, mall owners Cupertino Square according to Cupertino's annual and Vallco Internataional Shop- budget report to the city council. CITY OF City of Cupertino 10300 Torre Avenue Cupertino, CA 95014 CUPERTINO FAX (408) 777-3333 Community Development Department SUMMARY Agenda Item No. Application: MCA-2009-01 Applicant (s): City of Cupertino Property Location: Citywide Agenda Date: October 20, 2009 Application Summary: Municipal Code Amendment to Title 17 of the Cupertino Municipal Code, Sign Ordinance. RECOMMENDATION The Planning Commission recommends that the City Council adopt the proposed amendments to the Sign Ordinance in accordance to the model ordinance (Attachment A). BACKGROUND: On February 19, 2008, the City Council adopted in its 2008-09 work program, a review of the sign ordinance in order to make it more "business friendly." The first part of a phased ordinance amendment process was completed in October 2008, when the City Council adopted changes to Chapter 17.32 (Temporary Sign Regulations) of the Sign Ordinance. This proposed amendment is the second part of the process which involves a comprehensive review of the Sign Ordinance. These. amendments were reviewed by the Planning Commission at its meeting on September 22, 2009. The Commission recommended approval of the proposed amendments, on a 4-1 vote (Lee: No). Overall, the Planning Commission supports the changes recommended by staff with a minor revision regarding the review and approval authority of Neon/LED signs (discussed further on Page 4 of this report). DISCUSSION: COMMUNITY OUTREACH On July 15, 2009, a community workshop was held by City staff to give the community an opportunity to review and discuss any concerns or comments related to the sign ordinance. X12 ~5 MCA-2009-O1 Sign Ordinance Amendment October 20, 2009 Paee 2 Citywide notification was provided in a newspaper advertisement in the Cupertino Courier. Announcements about the ordinance update and the community meeting were made on trie laty's website, trie L~ty Lhannel, the ~:upertino Kadio station (1670 AM) and in the Cupertino Scene. Additional outreach effort included notification to commercia proper owners, usinesses, e uper ino am er o ommerce an t e Chamber's Legislative Action Committee. Comments received from the community meeting are summarized as follows: • Add flexibility in wall signs and ground signs • Facilitate creative signs • Preserve well-designed nonconforming signs • Expedite sign approval process • Lower threshold for requiring a Sign Program Please see Attachment B for detailed discussion and account of the workshop comments. In addition to the comments received from the public workshop, staff also received a comment from a resident who expressed a need for signs in English (see Attachment C). The resident contends that signs in ethnic languages currently preclude larger segments of the community from using businesses. He noted that signs in English would promote better integration and provide for a healthier economic base in the City. The City Attorney has researched this issue and has found that sign content cannot be regulated without violating both First Amendment and Equal Protection rights (see Attachment D). However, cities are allowed to require building numbers and street addresses in English to allow Fire and Police Departments to locate buildings in the event of an emergency (see Attachment E). The Cupertino Sign Ordinance already includes this requirement. ORDINANCE AMENDMENT OBTECTIVES & TOPICS Based on input received from the community workshop and the City's past experience in working with business owners/sign applicants, the proposed changes to the Sign Ordinance are designed to meet the following objectives: 1. Increase flexibility 2. Streamline the approval process 3. Improve the readability of the document while making it internally consistent and removing redundant language Staff also reviewed Sign Ordinances from several cities in Santa Clara County, San Mateo County, and in other areas in California for each of the areas in which changes are being proposed (see Attachment F). Attachment G is a strikeout version of the ordinance amendments indicating removals and additions. In addition, sidebars along the document show one or more of the three ~~~ ~ MCA-2009-01 Sign Ordinance Amendment October 20, 2009 Page 3 objectives achieved by each set of amendments. and the critical changes. Please review Attachment H, September 22, 2009 Planning r'^is~l~#~€€-re~e~#~ €ee~e-de#-aped-~ise~rJsie~re~e~~t~ . 1. INCREASE FLEXIBILITY Changes proposed in the following areas of the Sign Ordinance allow additional flexibility. In proposing amendments to the Sign Ordinance, staff also reviewed recurring sign exception requests that were consistently supported by the City. The following is a brief list of changes that are being proposed: a) Redefine how sign dimensions are measured: by removing wall sign height restrictions and allowing amore flexible way to measure sign area. This flexibility in addition to the existing design criteria in the Ordinance will ensure that signs are architecturally proportional with the building and of high quality (See Page 7 of Attachment G for details). b) Landmark signs: Legal non-conforming signs with a distinctive architectural style would be designated as Landmark Signs. Minor structural enhancements, minor modifications or relocation of the sign within the same general area, may be allowed, provided that the architectural character of the sign is not compromised. A list of the potential Landmark signs is included for the City Council's consideration (Page 59 of Attachment G). c) Allow pedestrian-oriented blade signs: to promote businesses that are located in pedestrian-oriented developments and make buildings visually appealing (See Pages 4, 13 and 25 of Attachment G). d) Allow logos/symbols on directory signs: to provide additional graphical or visual assistance to make these signs more effective and easier to read (See Page 12 of Attachment G). e) Allow additional wall sign on corner buildings: to provide flexibility for additional wall signs on buildings that function like a corner building adjacent to not only public streets but private driveways as well (see Page 24 of Attachment G). ~ Allow properties with 100 feet of street frontage one ground sign regardless of building setback (See Page 26 of Attachment G). g) Allow illuminated logos, symbols or insignia (See Page 25 of Attachment G). . h) Allow additional portable signs for larger retail stores with multiple entrances and wide frontages (See Page 45 of Attachment G). i) Other Miscellaneous Changes as indicated in the Planning Commission staff report dated September 22, 2009 (See Page 7 of Attachment H) 2. STREAMLINE APPROVAL PROCESS In an effort to enhance the efficiency of the sign review and approval processes, the following amendments are proposed to the Sign Ordinance: ~~' ~ ~ MCA-2009-O1 Sign Ordinance Amendment October 20, 2009 Page 4 a) Change the sign program criteria - to exempt smaller developments from requiring a sign program an o a ow Brea er crea ivi in ivi ua ity or developments that require sign programs by allowing minor variations from the sign or mance ee age o ac en b) Neon/LED Signs -Recent trends indicate that neon and the newer technology of using light-emitting diode (LED) embellishments to signs are popular and can be aesthetically pleasing. Some examples of neon embellishments on signs include the BJ's, Wahoo Fish Taco, and Elephant Bar restaurants. The current Sign Ordinance requires that these signs be approved by the Design Review Committee. Staff suggests that minor embellishments in neon and LED be approved by the Director of Community Development. Significant use of neon or LED in signs will still be approved by the Design Review Committee (See Page 28 of Attachment G). Planning Commission Comments: The Planning Commission reviewed this issue and recommended that the Design Review Committee continue to be the approval authority for all neon and LED signs. The Commission felt that such signs should be scrutinized more to ensure that there is adequate public noticing, review and monitoring to minimize nuisance to neighbors and potential light pollution from glare. 3. IMPROVE READABILITY, IMPROVE INTERNAL CONSISTENCY AND REMOVE REDUNDANCY Various sections of the Sign Ordinance have been reformatted to improve readability as part of this Sign Ordinance amendment effort. Where possible, tables have been created to simplify data presentation and organization (see Attachment G). Additionally, the Ordinance language has been clarified or removed to enhance readability and remove inconsistencies and redundancy. 4. REMOVAL OF ILLEGAL SIGNS IN THE PUBLIC RIGHT OF WAY Code Enforcement Staff recommends that new provisions be added to the Sign Ordinance to allow removal of unpermitted and/or illegal signs located in the public right-of-way without prior notification (see Page 50 of Attachment G). Sign owners will be notified after sign removal,,if their contact information is available. Similar enforcement provisions are found in other -cities such as Santa Clara, .San Jose, Mountain View and Redwood City. 5. ADDITIONAL CHANGES SUBSEQUENT TO THE PLANNING COMMISSION'S REVIEW The City Attorney has recommended some additional changes to the definition of Temporary Sins and to the Temporary Sign Regulations Chapter (Chapter 17.52) to improve clarity and readability (See Page 34 of Attachment G). pie-r g MCA-2009-01 Sign Ordinance Amendment October 20, 2009 Pale 5 FISCAL' IMPACT It is anticipated that the proposed amendments will increase efficiency of review and, therefore, decrease cost or usinesses. to w' trac tune require or review o sign programs over asix-month period to ensure that the fees cover staff time and report back to the City Council if increases are recommen e to t e ee sc e u e. ENCLOSURES Attachment A: Model Ordinance Attachment B: Comments from July 15, 2009 Community meeting Attachment C: Email correspondence from Mr. Bryan Lanser dated September 8, 2009 Attachment D: Email correspondence from City Attorney Carol Korade dated September 9, 2009 Attachment E: Asian American Business Group v. City of Pomona (C.D. California) July 14, 1989 Attachment F: Matrix comparing Sign Ordinances of other cities Attachment G: Strike out version of model ordinance Attachment H: Planning Commission Staff Report dated September 22, 2009 Prepared by: Piu Ghosh, Associate Planner Reviewed by: A ivastava ommunity Development Director Approved by: ave Knapp City Manager l~~~lq