EDC 02-16-2011 City of Cupertino
Economic Development Committee
Regular Meeting
Minutes for February 16, 2011
1. CALL TO ORDER
At 10:00 a.m. Kelly Kline called the meeting to order in Conference Room A at City
Hall.
2. ROLE CALL
City Staff: Kelly Kline, Dave Knapp, Aarti Shrivastava, Timm Borden, Piu Ghosh
Chamber: Paula Davis, John Zirelli, Maria Streeby
City Council: Orin Mahoney, Kris Wang
Planning Commission: Marty Miller
Guests: Ruby Elbogen
3. APPROVAL OF MINUTES
Dave Knapp made a motion to approve the August 2010 minutes and Aarti Shrivastava
seconded the motion. The motion passed unanimously.
4. ORAL COMMUNICATIONS-None
5. NEW BUSINESS
A. Redevelopment Update: The City Council/Agency Board at a joint meeting on
February 15, 2011 approved agreements to distribute 1.8 million in the
Redevelopment fund for their intended uses— affordable housing and public
infrastructure. The Santa Clara County Housing Trust will receive $lmillion with the
remaining to be used for public improvement and associated costs in the Vallco
Redevelopment Area. The proposed public improvements in the Vallco area will
include a streetscape project along the north side of Vallco Parkway with curbs,
gutters, sidewalks and benches, as well as the installation of two Trash Capture
Devices (TCD)which are an unfunded state mandate for the City.
B. Economic Development Manager Report
Grand Openin�: There were 10 grand openings between August 2010 and January
2011 including: Nutrition Restaurant at Cupertino Village, Pho-licious at the Oaks,
212 New York Pizza on Homestead at Blaney, Addison Credit Union on Stevens
Creek Boulevard, Kong Tofu and One Pot at Marketplace Shopping Center.
Leases: Construction is underway for the following new businesses: Kiddie Academy
(8K of the 20K s.f. at the Furniture 20001ocation). Seagate will be moving in early to
mid-April, Kee Wah Bakery at Civic Center, Village Falafel on Blaney, Flight Wine
and Food and Bonjour Crepe at St. Joseph's Center. The Torre Plaza office building
at the intersection of Torre and Rodriguez will be fully occupied by Lab 126.
Real Estate Notes: Shrivastava noted that the development of new office space is
becoming a topic of conversation again. The current General Plan limits heights to 45
feet, or roughly 3 floors. However, allowing 1-2 additional floors in strategic parts of
town should be studied. Kline noted that the tight office market is encouraging
owners of Class B office buildings to improve their spaces.
The PW Market(Homestead Square) site has been sold by the Franco family to the
Sobrato Organization. Sobrato intends to move forward with the redevelopment of the
site beginning with Rite Aid moving closer to Homestead Road.
The Tomokazu site at the intersection of Alves and Blaney is for sale, and the 5-acre
parcel behind Macy's (old Vallco Mall condo site) is in escrow. City is
communicating with the broker for the Tintin Market site who is actively looking for
tenants.
Citv's Economic Health: Cupertino has the second to lowest vacancy rate in the
South Bay area at 9.07%but its average asking rate is second to highest at $2.78.
Cupertino is the 17th wealthiest ZIl' code as reported in the Business Journal in
November and 194th among over 30,000 zip codes nationally.
6. OLD BUSINESS
A. Vallco/Cupertino Square Update
See Redevelopment Update.
B. Cupertino Restaurant Association Update
None.
C. City Updates
- Green Building Ordinance/DPP—See DevelopmentActivity Report
7. CURRENT DEVELOPMENT REPORT
A. Development Activity Report Presentation
Spring 2011 edition of the DAR included with the EDC agenda. Of note, Results Way
may have momentum to begin their project soon. The prospective owners of the
Rosebowl site have been conducting due diligence. Learning Game construction is
complete. Mervyn's space will be coming in for Tenant Improvements and a new pad
closer to the street. Villa Serra's "Franco Park" has opened.
Green Building Ordinance update: After working for one year with the community
and many stakeholders, a draft was presented for Council review. Council asked for
some amendments which will be presented soon.
Review of the Development Permit Process: Staff has been working for two years in
an effort to simplify the permit process. Council gave direction on February 15, 2011.
Corresponding amendments will be presented for Planning Commission review in
summer 2011.
C. Upcoming Development Proj ects for Planning Commission/City Council
Not discussed
8. MISCELLANEOUS COMMITTEE UPDATES
Chamber of Commerce Update:
• Lunar New Year Luncheon: 2/17 at Dynasty Restaurant
• Star Awards: President's Award to Dave Knapp to honor his support and the hard
work of city staff.
• The next Taste of Cupertino will be held on 4/16 at the same venue as last time.
• Shop Cupertino! Is still in discussion phase. Talking to Loyalty/Smart Card
manufacturers to see how this can be incorporated.
9. FUTURE ITEMS/CALENDAR
• 2011 EDC Meetings— 10:00 a.m. in Conference Room A:
o May 1 gtn
o August 17tn
o November 16tn
10. ADJOURNMENT
The meeting was adjourned at 11:00 a.m.
Kelly Kline
Economic Development Manager