DIR-2024-005 - Action LetterCITY OF CUPERTINO
10300 Torre Avenue, Cupertino, California 95014 (408) 777-3308
To: Mayor and City Council Members
Chairperson and Planning Commissioners
From: Luke Connolly, Assistant Director of Community Development
Prepared by: Gian Paolo Martire, Senior Planner
Date: August 14, 2024
Subject: Director’s Minor Modification to allow the removal of a level of underground parking from a proposed hotel located at 10801 & 10805 N. Wolfe Road (APN 316-45-017).
Chapter 19.164 of the Cupertino Municipal Code allows for administrative approval of minor changes in a project. The Director reports his decision to the City Council and Planning Commission
in time to allow an appeal of the decision within fourteen calendar days.
DISCUSSION
The project site is located on the west side of N. Wolfe Rd. between Interstate 280 and Homestead Road, in the North Vallco Park Special Area. The land uses allowed along N. Wolfe Rd.,
between Interstate 280 and the shared city boundary with Sunnyvale, include residential, office, and commercial (which allow hotel uses with a Conditional Use Permit).
The site is currently developed with two commercial buildings: a 3,385 sq. ft. building currently occupied by the Duke of Edinburgh Pub and Restaurant, and a vacant 10,044 sq. ft. commercial
building (former bank). Land uses surrounding the project include the Cupertino Village Shopping Center to the north, residential apartments (Arioso Apartments) to the west, a hotel
to the south (Hilton Garden Inn), and office (Apple Park) and residential apartments (Hamptons Apartments) to the west.
Background
On July 16, 2019, the City Council approved a General Plan Amendment (GPA-2017-05, Resolution No. 19-091), a Development Permit (DP-2018-04, Resolution No. 19-092) an Architectural and
Site Approval Permit (ASA-2017-09, Resolution No. 19-093), a Use Permit (U-2018-03, Resolution No. 19-095), Mitigated Negative Declaration (EA-2017-06, Resolution No. 19-090), Tree
Removal Permit (TR-2017-46, Resolution No. 19-094), and subsequently on August 20, 2019, conducted the second reading to adopt a Development Agreement (Attachment 2 – DA-2017-01, Ordinance
No. 19-2186) to allow construction of a hotel on a 1.72-acre site by demolishing the 3,385 sq. ft. building currently occupied by the Duke of Edinburgh Pub and Restaurant, and the vacant
10,044 sq. ft. commercial building. The following development and site improvements were approved:
A new 5-story, 185 room upscale hotel;
New restaurant with separate bar on the ground floor;
Rooftop lounge with separate bar;
Conference Meeting Rooms; and
Updated landscaping along the perimeter of the property, including updated frontage improvements to provide pedestrian accessibility.
The applicant, KIMCO, on December 23, 2023, applied to amend the approved Development Agreement (DA-2023-002) to extend the Cupertino Village Boutique Hotel Project from five to eight
years. At the regularly scheduled City Council Meeting held on April 16, 2024, City Council conducted the second reading for Ordinance No. 24-2258 to extend the Development Agreement
with the proposed amendments which include, but are not limited to:
The term of the agreement extended to the (8th) anniversary of the Effective Date (November 19, 2027).
Any proposed revisions to the amount of parking and/or parking layout, are treated as an Administrative Project Amendment and not subject to an amendment to this agreement.
Following their Development Agreement amendment approval, KIMCO submitted a Director’s Minor Modification to allow the removal of one level of underground parking from the proposed
hotel, reducing the approved parking total from 206 spaces onsite, to 108.
Parking Analysis
The City’s Municipal Code requires parking for lodging to be provided at a rate of one (1) space per hotel room and one (1) space per employee, for a parking total of 247 (185 hotel
rooms and 62 employees). However, since the property is located within a
Planned Development Zoning District, which allows development standards to be developed in conjunction with approval of a project, the project was approved in 2019 with an alternative
parking standard that reflects actual observed parking demand for hotels. On May 31, 2024, KIMCO submitted a Director’s Minor Modification to allow the removal of one level of underground
parking from the proposed hotel, reducing the approved parking total from 206 spaces onsite, to 108. Figure 2, as well as the Minor Modification Exhibit (Enclosure 1), illustrate
the proposed parking revision. To support the proposed reduction in parking, the application includes a parking analysis prepared by Kimley-Horn and Associates (Analysis), dated May
22, 2024 (Enclosure 2)
The Analysis assumed the following when studying the parking demand:
That one level of the Hotel’s underground parking proposed for removal for totals 98 spaces, leaving a total of 108 spaces at the future Hotel site.
Parking would be shared between the proposed Hotel and the adjacent Cupertino Village Shopping Center, which have a common ownership by KIMCO.
Cupertino Village Shopping Center has 739 striped parking spaces.
Once constructed, between the proposed Hotel and Cupertino Village Shopping Center, there will be a total of 847 spaces.
That if parking demand exceeds 85% of parking supply, vehicles start driving around the site looking for parking. Therefore 85% of the parking supply is considered “full occupancy.”
Utilizing 85% as theoretical “full occupancy”, the proposed Hotel parking demand is 92 spaces (108 spaces x 85%) and the Hotel would have a shortfall of 16 spaces, onsite.
Because of the potential peak demand shortfall, opportunities provided/shared by the adjacent Shopping Center from 8 – 10 AM and from 7– 9 PM, were examined for shared parking opportunities
with the adjacent Shopping Center.
In determining parking capacity of the sites, the Analysis used the International Transportation Engineers (ITE) parking generation numbers for hotels, as well as survey data from site
visits for the shopping center. As shown in Figure 3, the Analysis indicates that there is sufficient supply at the Shopping Center when the Hotel parking demand is at its peak (mornings
and evening). Based on this determination, the Analysis recommends that parking be shared and managed with the Cupertino Village Shopping Center during the peak time.
To manage potential overflow parking from the Hotel, the Analysis proposes to reserve parking in the tree-lined area, located immediately to the west of the proposed hotel, and/or on
the upper level of the parking structure of the Cupertino Village Shopping for Hotel usage (refer to Figure 4) These areas are suitable since they are closest to the Hotel site and
the parking spaces in these areas have consistently low occupancy, particularly the upper level of the parking structure. Anyone who currently parks in the tree-lined area would then
be redirected to the existing parking structure, since there are parking spaces available. This could reduce the occupancy rate of parking in the Hotel’s underground parking structure
even with the removal of one floor of underground parking from the original plan.
In summary, the Hotel can be developed with only one floor of underground parking for a total supply of 108 spaces to accommodate guests and employees.
ACTION
The Director of Community Development deems the modification minor and approves the project with the following conditions of approval:
SECTION I: CONDITIONS ADMINISTERED BY THE COMMUNITY DEVELOPMENT DEPARTMENT
APPROVED EXHIBITS
Approval is based on exhibits titled: “Cupertino Village Hotel: Minor Modification Exhibit” prepared by Hornburger + Worstell, dated May 24, 2024, consisting of seven (7) sheets, as
well as the “Cupertino Village Boutique Hotel Parking Analysis” prepared by Frederik Venter and Brandon Kenery of Kimley Horn, dated May 22, 2024, except as may be amended by the conditions
contained in this resolution.
RECIPROCAL PARKING AGREEMENT
The property owner shall enter into a private agreement with the owner of the contiguous lots that make up the Cupertino Village Shopping Center (APN 316-05-056, -052, -053, -051, -050,
and 316-45-017) for a reciprocal parking agreement. The agreement shall run with the land and shall be recorded prior to final occupancy.
Any future refinements to the parking arrangement may be approved by the Director of Community Development if a subsequent parking and traffic analysis indicates that there is adequate
parking for the hotel site and the shopping center.
ACCURACY OF THE PROJECT PLANS
The applicant/property owner is responsible to verify all pertinent property data including but not limited to property boundary locations, building setbacks, property size, building
square footage, any relevant easements and/or construction records. Any misrepresentation of any property data may invalidate this approval and may require additional review.
BUILDING PERMITS
The applicant shall consult with the City Building Division to obtain the necessary building permits, or building permit revisions, prior to commencement of work.
ANNOTATION OF THE CONDITIONS OF APPROVAL
The conditions of approval set forth shall be incorporated into and annotated on the first page of the building plans.
CONSULTATION WITH OTHER DEPARTMENTS
The applicant is responsible for consulting with other departments and/or agencies with regard to the proposed project for additional conditions and requirements. Any misrepresentation
of any submitted data may invalidate an approval by the Community Development Department.
PREVIOUS CONDITIONS OF APPROVAL
All prior conditions of approval through past approvals shall remain in effect unless superseded by or in conflict with subsequent conditions of approval and as specifically amended
by this Director’s Minor Modification approval.
INDEMNIFICATION
As part of the application, to the fullest extent permitted by law, the applicant shall agree to indemnify, defend with the attorneys of the City’s choice, and hold harmless the City,
its City Council, and its officers, employees, and agents
(collectively, the “indemnified parties”) from and against any liability, claim, action, cause of action, suit, damages, judgment, lien, levy, or proceeding (collectively referred to
as “proceeding”) brought by a third party against one or more of the indemnified parties or one or more of the indemnified parties and the applicant related to any Ordinance, Resolution,
or action approving the project, the related entitlements, environmental review documents, finding or determinations, or any other permit or approval authorized for the project. The
indemnification shall include but not be limited to damages, fees, and costs awarded against the City, if any, and cost of suit, attorneys’ fees, and other costs, liabilities, and expenses
incurred in connection with such proceeding whether incurred by the Applicant, the City, or the parties initiating or bringing such proceeding.
The applicant shall agree to (without limitation) reimburse the City its actual attorneys’ fees and costs incurred in defense of the litigation. Such attorneys’ fees and costs shall
include amounts paid to the City’s outside counsel and shall include City Attorney time and overhead costs and other City staff overhead costs and any costs directly related to the
litigation reasonably incurred by City. The applicant shall likewise agree to indemnify, defend, and hold harmless the indemnified parties from and against any damages, attorneys’ fees,
or costs awards, including attorneys’ fees awarded under Code of Civil Procedure section 1021.5, assessed or awarded against the indemnified parties. The Applicant shall cooperate with
the City to enter a Reimbursement Agreement to govern any such reimbursement.
The Applicant shall agree to (without limitation) reimburse the City for all costs incurred in additional investigation or study of, or for supplementing, redrafting, revising, or amending,
any document (such as an Environmental Impact Report, negative declaration, specific plan, or general plan amendment) if made necessary by proceedings challenging the project approvals
and related environmental review, if the applicant desires to continue to pursue the project.
The Applicant shall agree that the City shall have no liability to the Applicant for business interruption, punitive, speculative, or consequential damages.
NOTICE OF FEES, DEDICATIONS, RESERVATIONS OR OTHER EXACTIONS
The Conditions of Project Approval set forth herein may include certain fees, dedication requirements, reservation requirements, and other exactions.
This approval of the modification is effective August 14, 2024. The fourteen-calendar day appeal period will expire on August 28, 2024.
Enclosures:
Plan Set
Cupertino Village Boutique Hotel Parking Analysis