CC 10-17-2023 Item No. 7. City Hall Project_Staff PresentationCity Council • October 17, 2023
City Hall Options
CC 10-17-2023 Item No. 7
Subject
Options for construction of a City Hall facility
Recommended Action
Direct staff to pursue conceptual development of a
mixed used Public Private Partnership for City Hall and
the Sports Center properties
Subject and Recommended Action:
Previous project review has shown that a renovation
project would cost approximately $27.5M, while a new
facility would approach a cost of $80M. The revised
direction from Council seeks to identify ways to deliver a
new facility as opposed to renovating the existing facility.
Cost Estimates
•Bond or Loans: compromised by a
projected budget deficit
•Future Revenue Enhancements: Sales tax
increase, and other tax options
•Public-Private Partnerships: requires a
revenue-producing development
Funding Options
Which City properties are good
candidates for a revenue -
producing development?
•City Hall
•Sports Center
Factors: high construction costs,
inclusionary housing
requirements, development
density, market performance
Report: Go/No -Go Assessment
•Ensure existing use is replaced at a City facility.
•Address need for a City Hall.
•Incorporate programmable public event space.
•Provide for community engagement and input.
Proposed Parameters
A strong demand for rental housing in Cupertino
exists, driven by high home ownership costs. However,
rent levels in Cupertino are just low enough where
they cast doubt on the viability of a potential project.
All of this is evidenced in the private development
market where interest is strong, but actual
development has difficulty taking place, and this
without the added complexity of a municipal use
detracting from the bottom line.
Report: Market Demands
Byrne Residence:
$2.73M
Additional Revenue sources
10455 Torre Avenue:
$4.45M
Direct staff to engage with Below Market
Housing Developers to explore options for
City Hall and/or Sports Center.
Next Steps
Questions?
Thank You