02 - February 13, 2025 - Parkland Dedication FeesPage 1 of 4
CITY COUNCIL INFORMATIONAL MEMORANDUM
Date: February 13, 2025
To: Cupertino City Council
From: Piu Ghosh, Planning Manager
Luke Connolly, Assistant Director of Community Development
Benjamin Fu, Director of Community Development
CC: Chad Mosely, Director of Public Works
Pamela Wu, City Manager
Chris Jensen, City Attorney
Re: Parkland Dedication fees
Background
At the September 4, 2024, City Council meeting, Councilmember Chao requested an
informational memorandum regarding:
1. The amount of parkland impact fees the City currently has; and
2. The amount of parkland impact fees generated by:
a. Previously entitled projects
b. Pending projects
c. Units planned in the Housing Element
This memorandum summarizes this information.
Summary
The City imposes fees on new development under the Quimby Act to support the
construction of park and recreational improvements. Under the Quimby Act,
parkland dedication fees can be used “only for the purpose of developing new or
rehabilitating existing neighborhood or community park or recreational facilities.”
(Gov. Code, § 66477(a)(3).) Cupertino Municipal Code section 13.08.100(B) provides
that parkland dedication fees are due “[a]t the time of building permit issuance or
recordation of a final subdivision map, whichever is earliest.” If a project approved
by the City expires or does not apply for building permits, the City does not receive
these fees.
OFFICE OF COMMUNITY DEVELOPMENT
CITY HALL
10300 TORRE AVENUE • CUPERTINO, CA 95014-3255
(408) 777-3308 • FAX (408) 777-3333 • planning@cupertino.org
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The Park Dedication Fund began Fiscal Year (FY) 2024-25 with an opening fund
balance of $19,046,081, as reported in the FY 2023-24 Annual Comprehensive
Financial Report. Accounting for budgeted revenues of $478,000 and expenditures
of $5,940,456, the available balance to date is $13,583,625.
Parkland dedication fees are based on the density of development with the fee
decreasing with an increase in density per Chapter 13.08, Parkland Dedication, of
the Municipal Code. Residential development projects that involve the demolition
of existing units receive a credit for the units that were demolished, the fee applies
only to additional units that are developed. Additionally, in-lieu of parkland
dedication fees are waived for affordable units. Finally, if a density bonus for units
is requested pursuant to Density Bonus law, additional in-lieu of parkland
dedication fees would apply to the bonus units. Therefore, the projections provided
in this memo may need to be revised based on actual project metrics at the time of
building permit issuance.
Tables 1 and 2 below indicate the projected in-lieu-of parkland dedication fees for
the projects that have been previously entitled by the City and pending projects
respectively.
Table 1: Projected In-lieu of Parkland Dedication Fees for Entitled Projects
Project
Name
Unit Count Density
(du/ac)
Parkland Fee
estimate
Notes
Bianchi
Townhomes
7 total, 6 market
rate, 1 affordable 20.36 $84,000
Project has parkland credit
for existing units. Building
permits under review.
Vallco 2,669 total, 1,779
market rate, 890
affordable
47.25 $0
Parkland will be dedicated
per Municipal Code Chapter
13.08.
Marina 206 total, 170 market
rate, 36 affordable 40.39 $9,180,000 No building permits
submitted.
Hamptons 943 total, 872 market
rate, 71 affordable 75 $11,587,968
Fee set by Development
Agreement due to expire in
2026. No building permits
submitted.
Coach House 34 units, 29 market
rate, 5 affordable 20.23 $1,566,000 No building permits
submitted. Property for sale
Total 3,859 units, 2,856
market rate, 1,003
affordable
$22,417,968
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Table 2: Projected In-lieu of Parkland Dedication Fees for Pending Projects
Project Name Unit Count Density
(du/ac)
Parkland Fee
estimate Notes
Vista Heights 35 units, 28 market
rate, 7 affordable < 5 $2,940,000 Builder’s Remedy
Project
Scofield condos 20 units, 16 market
rate, 4 affordable 58 $864,000
Builder’s Remedy
Project. Credit for
existing unit.
Summer Hill Staples* 59 units, 47 market
rate, 12 affordable 20.3 $2,538,000 SB 330
Toll Brothers United
Furniture*
55 units, 44 market
rate, 11 affordable 20.22 $2,376,000 SB 330
Stevens Creek Office
Center*
122 units, 98
market rate, 24
affordable
17.6 $5,880,000 SB 330
McClellan Road
Townhomes
27 units, 23 market
rate, 4 affordable 27 $1,242,000
Housing Element
site. Credit for
existing unit.
Dividend Homes*
(20085 & 20111 SCB)
57 units, 46 market
rate, 11 affordable 21.9 $2,430,000 Builder’s Remedy
Evulich Ct 51 units, 41 market
rate, 10 affordable 20.2 $1,794,000
Housing Element
site. Credit for
existing units.
11841 Upland Wy 6 units, 4 market
rate, 2 affordable 4 $420,000 Builder’s Remedy
Total
432 units, 346
market rate, 86
affordable
$20,484,000
* No decisions made regarding whether the City will accept a parkland in-lieu of fee or a parkland dedication.
The Housing Element anticipates the development of 3,237 new units (not including
previously entitled units). If all projects complied with the City’s Below-Market-Rate
(BMR) program, 20% of the units would be affordable and eligible to receive waivers
for in-lieu of parkland dedication fees. Therefore, 2,590 units would be required to
pay in-lieu of parkland dedication fees. Since most development would occur in the
20+ du/ac density range, the development of these units would potentially bring in
$140,030,400 in in-lieu of parkland dedication fees at the currently established fee.
It should be noted that the City adopted Strategy HE-2.3.9 and HE-3.3.5 in the 6th
Cyle Housing Element update as follows “to ensure that impact fees are not a
constraint on the development of housing, the City will ● Review and revise impact
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fees by researching surrounding jurisdictions to determine other possible fee
structures, grant funding opportunities and similar funding sources, review of
average persons per unit at higher densities of development and will consider: »
Alternatives, such as privately owned, publicly accessible (POPA) areas, or allowing
parkland credit for pedestrian connections and trails…..” and “The City will review
and revise its Park Land Ordinance to reduce any potential constraints on residential
development while maintaining access to quality open space. The City will review
requirements for higher-density projects and evaluate the possibility of open space
credits.” Should the City consider lowering fees for developments at higher
densities, the projected in-lieu of parkland dedication fees may need to be revised.