Exhibit CC 10-05-2010 No. 9 Metropolitan Mixed Use CC 16151/0
METROPOLITAN MIXED -USE
ON THE AGENDA OF THE SEPTEMBER 28 PLANNING COMMISSION
MEETING IT STATED THAT THE TENTATIVE CITY COUNCIL DATE WAS TO
BE OCTOBER 19, 2010, NOT OCTOBER 5TH.
AT THE PLANNING COMMISSION MEETING THE METROPOLITAN
REPRESENTATIVE APPEARS TO BLAME THE CITY FOR THE DIFFICULTIES
OF THE RETAIL PORTION OF THIS PROJECT.
DURING 2009 AND 2010 THE CITY AND THE COMMUNITY MET AT
LEAST 1 0 TIMES FOR THE HEART OF THE CITY SPECIFIC PLAN
CONCLUDING THAT "...THE HEART OF THE CITY AREA SHOULD BE
COMMERCIAL ORIENTED WITH RESIDENTIAL AS SUPPLEMENTAL USE."
THE METROPOLITAN IS RESIDENTIAL W COMMERCIAL AS
SUPPLEMENTAL USE.
IN 2004 METROPOLITAN RECEIVE AN EXCEPTION TO THE HEART OF
THE CITY MAXIMUM HEIGHT LIMIT OF 35 FEET IN EFFECT AT THAT TIME
BECAUSE OF ITS RETAIL COMPONENT. NOW IT IS REQUESTING AN
EXCEPTION TO REMOVE THE RETAIL.
THE CITY HAS BEEN MORE THAN FLEXIBLE IN CLASSIFYING IN
VARYING DEGREES THE VISION, SALON AND MARTIAL ARTS AS RETAIL.
THE CITY SHOULD REVIEW ITS LIST OF SALES TAX GENERATORS TO
DETERMINE THE AMOUNT OF SALES TAXES FROM THESE TYPES OF
BUSINESSES. NONE OF THESE CATAGORIES ARE IN THE LIST OF THE
TOP SALES TAX GENERATORS IN CUPERTINO.
THE METROPOLITAN REP ALSO STATED THAT THE PROPOSED
DENTAL OFFICE WOULD GENERATE SALES TAX. DENTAL OFFICES, AS
OPPOSED TO DENTAL LABS PRODUCING A TAXABLE PRODUCT, PROVIDE
SERVICES WHICH ARE NOT SUBJECT TO SALES TAX.
CUPERTINO COURIER
OCTOBER 1, 2010
CUPERTINO LOOKS AT LIFE WITHOUT HEWLETT PARKARD
PAGE 1
"THE CITY IS LOOKING TO DIVERSE ITS SALES TAX BASE...
PLANNING COMMISSION STAFF REPORT
SEPTEMBER 28, 2010
PAGE #1 -3
"RECENT COUNCIL ACTIONS
DUE TO THE CURRENT ECONOMIC CONDITIONS, THE CITY HAS
IN THE RECENT PAST LESSENED RETAIL USE RESTRICTIONS FOR
MIXED -USE PROJECTS, INCLUDING:..."
ADOBE TERRACE: THIS CHANGE WAS NOT DUE TO THE
CURRENT ECONOMIC CONDITIONS.
VILLAGIO: THIS CHANGE IN 2006 WAS PRIOR TO THE CURRENT
ECONOMIC CONDITIONS.
TOWN CENTER: CHANGE ON TOWN CENTER LANE, AN INTERNAL
ROADWAY, NOT DEANZA BLVD, A. MAJOR ARTERIAL STREET.
IT IS QUESTIONABLE THAT THE ABOVE CONSTITUTE A PRECEDENT
BY THE CITY TO LESSEN RETAIL USE RESTRICTIONS ON MIXED -USE
PROJECTS.
WITH RESPECT TO THE STATEMENT THAT WHEN THE ECONOMY
RETURNS, THE DEMAND FOR RETAIL SPACE WILL RESULT IN TURNOVER
OF DENTAL SPACE.
THE PLANNING STAFF IS CORRECT IN STATING THAT
"MEDICAL /DENTAL OFFICES TYPICALLY DO NOT HAVE A HIGH
TURNOVER, PARTICULARLY WHEN THEY ARE OWNERSHIP UNITS.
ESSENTIALLY, ONCE A MEDICAL /DENTAL USE OCCUPIES A SPACE,
THERE IS LITTLE LIKELIHOOD OF TURNOVER,..."
THIS IS DUE TO THE FACT THAT DENTAL OFFICES REQUIRE A HIGH
COST OF ELECTRICAL AND PLUMBING IMPROVEMENTS. THIS HIGH
CAPITAL IMPROVEMENT RESULTS IN CONTINUED DENTAL OFFICE USE
BY SUCCESSOR DENTAL TENANTS.
THE REPRESENTATIVE STATED THAT VALLCO AND MAINSTREET
CUPERTINO WERE DESIGNED TO BE INTERNAL PEDESTRIAN ORIENTED.
YET VALLCO PLANNED TO HAVE 2 RESTAURANTS AT THE NORTHWEST
CORNER OF STEVENS CREEK BLVD AND WOLFE. MAINSTREET IS
DESIGNED TO HAVE A 3 /4 ACRE PARK ADJACENT TO THE
METROPOLITAN, AS SHOWN ON THE ATTACHED MAP.
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Transplant Oaks at Entry -
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-� Individual Retail Plazas -- -
_ Existing Ash St ■eet Trees in Lawn r
STEVENS CREEK @ FINCH
MASTER SITE PLAN
SAND HILL PROPERTY COMPANY
CUPERTINO, CALIFORNIA
METROPOLITAN RETAIL IS WEST OF THE PARK
MAINSTREET RETAIL IS EAST OF THE PARK,
IT IS DESIGNED TO HAVE PEDESTRIAN ACCESS FROM STEVENS CREEK
BLVD AS WELL AS FROM THE INTERNAL CORE OF THE PROJECT.
CERTAINTY THE METROPOLITAN, AS OTHERS, IS SUFFERING FROM
THE ECONOMY, BUT CONVERSELY IT BENEFITED FROM THE DEMAND
FOR HOUSING IN 2006 AND 2007.
THE METROPOLITAN REP STATED THAT VISIBILITY WAS A PROBLEM. IT IS.
THE SIGNS ON THE BUILDING ARE NOT VISIBLE FROM THE STREET
BECAUSE OF THE PRESENT LO CANOPY OF THE TREES.
THE STREET SIGN FOR THE COMPLEX IS LOCATED AT THE DRIVEWAY
ENTRANCE. THE SIGN CAN NOT BE SEEN FROM STEVENS CREEK BLVD
AS YOU APPROACH FROM THE EAST, DRIVING WEST.
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A DRIVER AT THE SPEED LIMIT OF 35 MPH WILL NOT SEE THE SIGN IN
ORDER TO BE ABLE TO TURN INTO THE DRIVEWAY
THE WORDS, METROPOLITAN AT CUPEIRTINO, ARE NOT VISIBLE FROM A
DISTANCE. THE ADDRESS IS NOT VISIBLE. THE VISION TENANT OF 4
YEARS IS NOT LISTED, THE SALON IS SOMEWHAT VISIBLE, THE MARTIAL
ARTS IS NOT VISIBLE.
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METROPOLITAN at CUPERTINO
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PARKING
REP STATED THAT THE COMPLEX WORKS W SHARED PARKING. IS THAT
WHY AT THE PRESENT TIME THERE IS A NEED FOR SECURITY
PERSONNEL TO MONITORING THE PARKING IN THE RETAIL AREA?
CONDOMINIUM
THE CONDOMINIUM HAS BEEN ADEQUATELY ADDRESSED BY THE
PLANNING STAFF AND THE PLANNING COMMISSION.
DO 5 CONDOMINIUM SPACES REQUIRE DIFFERENT CONSTRUCTION
FROM THE EXISTING 2 CONDOMINIUM SPACES WITH RENTALS?
DOES CONDOMINIUM SPACE REQUIRE DIFFERENT SEPARATION THAN
RENTAL SPACE?
THE APPEARANCE OF THE OFFICE COMPLEX APPEARS TO BE IN
CONTRAST TO THAT OF THE RETAIL
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Cupertino Housing Partners is requesting approval to:
• Allow 60% non - retail uses and 40% retail uses in the 6,400 sf
retail space in the mixed -use development — Modification to
the Use Permit (U- 2003 -04)
■ Allow 60% of non - retail uses
along the Stevens Creek
Boulevard store frontage
Exception to the Heart of the
City Specific Plan
• Subdivide the 6,400 sf retail space from two existing
condominium units to five commercial condominium units
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Approval History
• December 2003 — Mixed use development of 107 residential units and
6,400 sf of retail space was approved — Use Permit (U- 2003 -04) &
associated applications
• October 2004 — 107 residential units approved as condominiums and the
creation of two (2) separate ground floor retail condominium units facing
Stevens Creek Blvd. by virtue of separating the residential condominiums
(Buildings A and B).
• Existing Tenants
n -, '
ta a 1016 & 1026
. �
V]ones Salon , a -' ' -.a Vacant
102A , ° 4 6 1036
Shaolin Martial T - � , •- FF Visique Eye Care
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Arts . 1 � ;, �e
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September 28, 2010
• On a 3 -1 vote (Comm. Lee voted no, Comm. Giefer was absent) the
Commission recommended approval of the following:
• Modification to the Use Permit to allow up to 60% non - retail uses
(Building B)
• Exception to the Heart of the City Specific Plan to allow non - retail
uses to occupy up to 60% of the project store frontage along
Stevens Creek Blvd.
• Negative Declaration
• On a 4 -0 vote, the Commission recommended denial of the Tentative
Map to subdivide the commercial space into five commercial
condominium units
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Tentative Map
Deny based on the following:
• Enforcement issues — Less ability to ensure adherence to conditions
with multiple owners & as ownership changes hands
• Maintenance issues — Difficult for HOA members to agree on
maintenance work with multiple owners; commercial units maintain their
own plaza areas fronting Stevens Creek which can lead to
inconsistencies
• Precluding Possibility of Future Retail Uses — Potential for future
retail will not be realized if units are owned individually & they become
medical offices even if economy improves
• Inability to Enforce CC &Rs — Even though applicant says these
solutions can be written into the CC &Rs, the City Attorney notes that the
City does not have control over the CC&Rs since they can be amended
by the HOA
3