EDC 05-12-2009
City of Cupertino
Economic Development Committee
Regular Meeting
May 12, 2009
1.CALL TO ORDER
At 3:10 p.m Kelly Kline called the meeting to order in Conference Room A at City Hall.
2.ROLL CALL
City Staff: Kelly Kline, Piu Ghosh, Aarti Shrivastava, Ralph Qualls, Dave Knapp
Chamber: Suzi Blackman, Shawna Holmes, Mike Foulkes
City Council: Dolly Sandoval, Kris Wang
Planning Commission: Marty Miller
Absent: Kris Wang
Aarti Shrivastava, the Director of Community Development, was introduced as a new
member on the Economic Development Committee.
3.APPROVAL OF MINUTES
Dave Knapp moved to approve the minutes of the regular meeting on February 10, 2009.
Ralph Qualls seconded and the motion passed unanimously.
4.ORAL COMMUNICATION
- None
5.NEW BUSINESS
A.Housing Element Update
Kline kicked off the discussion by posing the broader question of how the housing
needs should be approached for the future. Shrivastava explained that the City has
been charged with providing enough adequately zoned sites to allow for the
development of 1,147 units. Currently, approved projects and developments under
construction account for 517 units of the total. The Housing Element update
locates sites within the city that can accommodate the balance of 733, mainly low
income housing units at a minimum density of 20 dwelling units per gross acre.
The Planning Commission reviewed the draft housing element and forwarded two
lists to the Council. Tier 1 includes sites that would satisfy the Regional Housing
Needs Allocation and for internal planning purposes. Tier 2 sites address future
growth and housing needs.
nd
Shrivastava said that the City Council will consider this item on June 2. The
draft needs to be sent to the Department of Housing and Community
Development (HCD) by the end of June. HCD has 60 days to review and
comment and to certify the draft. Major changes recommended by HCD will have
to be brought back to the Council for adoption. Additionally, about 40% of the
Tier 1 sites will need to be rezoned to provide the housing overlay. Most of these
sites requiring rezoning are in the Homestead Area and one site is in the Heart of
the City Specific Plan Area.
Shrivastava mentioned that ABAG is currently working on Projections 2009. The
Projections are revisited every two years. There are two methods being used to
project growth – “Focused Future” – which mainly focuses on development
around transit stops and “Scattered Success” – a more traditional development
model. Any changes to the projections will have implications to the next housing
element cycle. Under the Focused Future scenario, population growth in the City
of Cupertino is projected to be lower than under Projections 2007 and
significantly lower than other comparable cities.
The Environmental review of the Housing Element can commence only when
HCD has certified the draft. The Office Allocation environmental review will
occur in conjunction with the Housing Element environmental review. Therefore,
the action on the final general plan amendment and rezoning etc will happen in
the Fall.
B.Economic Development Manager Report
Kline provided the committee with various updates on grand openings, retail
under construction, new leases and sales. Recent grand openings include: Staples
(Ribbon shredding), Tatami Sushi/Seafood Buffet, Terriyaki Experience,
Chiaramonte’s Deli and Aji Ichiban Candy. Under construction: The Learning
Game on N. De Anza Blvd, Takaki Bakery (at the Marketplace), Verde Tea
(relocating to the Marketplace), Orange Tree Yogurt (Oaks Shopping Center).
Coming soon to the food court at Cupertino Square are Subway and Bawarchi
Indian Cuisine. Recent leases/sales include: Bonjour Crepe Co. at Travigne, an
Imax Theater at AMC 16 in the Mall. TGI Friday’s has a new operator and will be
th
opening soon after the July 4 weekend. Café Torre also has a new operator.
Kline mentioned that she, the Chamber and Knapp had informal business
appreciation meetings with two Cupertino businesses Solargen Energy and
Verigy. She said meeting with these businesses gave them a chance to hone the
approach for future business appreciation meetings.
Kline mentioned that several high profile tenants are looking for space in
Cupertino. Tenant negotiations are taking place at Cupertino Square & the
Montebello Development. The status of the Bollywood theatre, at the Oaks, is
unknown at this point.
Kline mentioned that Harvest Restaurant, Hofbrau Express & Frederick’s of
Hollywood closed in the last quarter. She talked briefly about Symantec moving
its world headquarters to Mountain View. However, she mentioned that Symantec
will retain their customer service, operations and sales tax office in Cupertino.
Kline mentioned that several development projects continue to progress including
the Rosebowl and Cupertino Village. KCR Development has applied for their
grading and demolition permits while Cupertino Village has applied for their
building permits. She also mentioned that Cupertino Village had a property tax
assessment which has had a big impact on the small businesses at the center.
Kline mentioned that the City was trying different avenues to obtain Federal
Stimulus money. Most of the money is for “shovel-ready” projects. In conjunction
with Silicon Valley Economic Development Alliance (SVEDA), a proposal has
been submitted called “Main Street & Green Street” for a revolving loan program
benefitting Silicon Valley.
Kline reported that the City now has a preferred caterers list for events at the
Blackberry Farm. All four caterers are Cupertino businesses. Kline also reported
on a partnership between the City, the Chamber and Service Corp of Retired
Executives (SCORE) to offer a New Business Class taught in Mandarin. The pilot
class is targeted to begin in the Fall of this year.
Additionally, Kline also shared that the current office vacancy rate is 12%. While
significantly higher than in previous years, it is still low for Silicon Valley, and
the asking rates are the highest in the Valley.
6.OLD BUSINESS
A.Cupertino Square Update
See Economic Development/Redevelopment Managers Report
B.Cupertino Restaurant Association Update
See Economic Development/Redevelopment Managers Report
7.CURRENT DEVELOPMENT REPORT
A.Development Activity Report Presentation
Shrivastava reviewed the most current copy of this report which can be found on
the City’s website. Qualls mentioned the success of the Mary Avenue pedestrian
bridge opening.
B.Upcoming Development Projects for Planning Commission/City Council
The upcoming projects matrix was distributed to the committee. Changes in
status are highlighted in yellow.
8.MISCELLANEOUS COMMITTEE UPDATES
A.Chamber of Commerce Update
Blackman announced that the Chamber was excited about the pilot project to offer
the SCORE new business class in Mandarin. She also announced the Chamber’s
joint mixer date at the C.J. Olson’s Cherry Stand in Sunnyvale (which has since
been moved to Arya Restaurant.)
9.FUTURE ITEMS
Next Meeting: August 11 – Discuss Fiscal Strategic Plan, including revenue
generation ideas, comparisons to other cities, and an update on the state budget.
10.ADJOURNMENT
The meeting was adjourned at 5:00 p.m.
______________________________
Kelly Kline
Economic Development Manager