EDC 05-11-2010 (2)
City of Cupertino
Economic Development Committee
Regular Meeting
May 11, 2010
1.CALL TO ORDER
At 3:35 p.m. Kelly Kline called the meeting to order in Conference Room C at City Hall.
2.ROLE CALL
City Staff: K. Kline, Ralph Qualls, Jennifer Li, Piu Gosh, Aarti Shrivastava, Mark Linder
Chamber: Lynn Ching, Maria Streeby
City Council- Gilbert Wong, Orrin Mahoney
Guests: Russell Hancock
Planning Commission: Lisa Giefer
Introductions were made around the table.
3.APPROVAL OF MINUTES
Orrin Mahoney moved to approve the minutes of the regular meeting on February 9,
2010. Ralph Qualls seconded, and the motion passed unanimously.
4.ORAL COMMUNICATIONS-
None
5.NEW BUSINESS
A.Presentation from Russell Hancock, CEO of Joint Venture Silicon Valley on the
State of the Valley 2010
Russell Hancock started off by talking about Silicon Valley’s economy compared to
other locations. Currently Silicon Valley’s unemployment level is 11.5-12% (national
level is 10%.), income levels have stagnated, and commercial vacancies add up to 14
Empire State Buildings. Sales tax is way off and layoffs are occurring across the
board. Hancock mentioned two important structural changes that have occurred in the
Valley. The first is a change in the amount of money venture capitalists will generate
and spend in Silicon Valley. The numbers have dropped 35% from last year and the
Valley hasn’t made money from them in the past 20 years. The second change is in
employment figures. Companies are now competing with global markets and are
trying to stay as small as possible. The majority of the current hiring done is through
contracts. We are new “Valley of Free Agents.” New technology such as webcams,
have made it possible for companies to hire the best from the world. Hancock predicts
only incremental growth in employment figures.
Next, Hancock reviewed this year’s index. Although Silicon Valley still has the
largest percentage of patents, overall patent activity is off. Furthermore, Federal
capital is no longer focused towards the Valley, but is instead being distributed.
Hancock pointed out that Silicon Valley is the most globalized region in the United
States. 60% of the engineers are Indian or Chinese. These numbers have dropped
significantly because China and India are thriving, especially since 9/11. Silicon
Valley has also been affected by California’s debt crisis, which has deteriorated
California’s educational system.
Hancock then talked about two industries that are improving: Clean Tech and
Healthcare. Clean Tech is one key to carrying Silicon Valley forward. It is a new
energy scheme that has massive capital requirements so government approval is
needed; however, in light of the Valley’s dearth of Federal funding, a partnership is
required.
Joint Venture’s job is to create partnerships with cities and companies in order to help
Silicon Valley recover. They have a program for Federal Partnership, and a Climate
Prosperity Council that specifically addresses Clean Tech. Joint Venture’s goal is to
help move California forward by fostering new employment opportunities and
improving education by hiring the best teachers. Hancock mentioned that a Mayor
Forum hosted by Joint Venture will occur in June. Joint
B.Economic Development Manager Report
Kelly Kline briefly went over some grand openings including Aqui and Café
Gratitude. The De Anza Center is 100% leased, and there have been some openings
already. There have been 28 openings so far this year, which is an improvement from
last year’s 20. Kelly Kline pointed out the Business Journal article that talks about
tenant interest in the Mervyn’s space. New leases have been signed for SmokeEaters
which will be located at the previous Miyake’s; 360 Burrito at Vallco; KeeWah
Bakery at Civic Park; and Sweet Passions Bakery at Crossroads. The property owner
of The Bombay Oven and adjacent strip is exploring a new development that would
replace the pad and burned-out center.
6.OLD BUSINESS
A.Cupertino Square Update
Kline said that the mall is pursuing a master entertainment permit to cover individual
requests to provide live music.
B.Cupertino Restaurant Association Update
Kline talked about “Taste of Compassion”, modeled on the successful Mountain
View program “Chefs Who Care”. West Valley Community Services (WVCS) plans
to debut the program in July at Park Place. WVCS will be handling all ticketing and
will reimburse restaurants for their half of the proceeds. Kline then mentioned that the
Chamber is hosting “Taste of Cupertino” next to AMC at Vallco. In other activities,
Kline said that she is talking to a daily commuter service, aimed at midsized
companies in Cupertino. A lunchtime shuttle will be also be explored. Kline
mentioned the goal of increasing the number of green businesses in Cupertino
(currently 10).
C.City Updates
Aarti Shrivastava went over the Upcoming Projects Matrix. Learning Game is still
under construction. Shashi Hotel, Rosebowl, and Mainstreet are all working on their
financing. The first green Building Ordinance focus group will take place in June.
Additional commercial members are being sought. A second meeting will occur to
review a draft ordinance. Staff is also looking at increasing the city’s commercial
allocation, and expanding commercial zoning to larger BQ sites.
7.CURRENT DEVELOPMENT REPORT
Due to a limited amount of time, the Development Activity Report was not reviewed;
however, and updated version can be found on the City website.
8.MISCELLANEOUS COMMITTEE UPDATES
Lynn Ching, President of the Chamber of Commerce then updated the committee. The
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next Chamber mixer is at Arya on May 15, 2010 and Taste of Cupertino will be on June
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26. Another mixer will be at the Quinlin Plaza where a ribbon cutting ceremony will
take place.
9.FUTURE ITEMS/CALENDAR
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The next Economic Development Committee Meeting is scheduled for August 10, 2010
in Conference Room A at 3:30 p.m.
10.ADJOURNMENT
The meeting was adjourned at 5:10 p.m.
___________________________
Kelly Kline
Economic Development Manager