EDC 01-19-00
City of Cupertino
Economic Development Committee
Regular Meeting
January 19,2000
1.
CALL TO ORDER
At 7:39 a.m., Carol Atwood called the meeting to order in Conference Room C & D,
Cupertino City Hall, 10300 Torre Avenue.
2.
ROLL CALL
City Staff: Carol Atwood, Don Brown, Steve Dowling, Steve Piasecki, Dorothy
Steenfott, Bert Viskovich
Chamber: Linda Asbury, Paula Davis, Bill Sullivan
City Council: Sandra James, Richard Lowenthal
Absent: Bill Jones
Guests: Ron Cali (Cali Financial Management), Deke Hunter (Hunter Properties), Dan
Safier (Pegasus Development Company), John Tze (Sand Hill Properties)
3.
NEW BUSINESS
A.
Revitalization of City Shopping Centers
Carol Atwood updated the committee on the background of the Sedway Report
and our "marginal" shopping centers which is estimated to consist of 435,000
square feet of retail space. She stated that the purpose of the meeting was to
decide whether it is beneficial to create a program to revitalize marginal centers
and if so, what can be done.
Steve Piasecki distributed a map indicating the locations of shopping centers and
stated that 18 of the 26 centers are considered marginal. He also stated that these
marginal centers are 6,000 to 60,000 square feet.
The committee asked each developer to describe their thoughts for redevelopment
of marginal shopping centers in Cupertino.
Deke Hunter:
I. Cupertino lacks a true "retail core component" and as a result, development
does not build off of a core success.
2. For centers that are 25,000 square feet or more, cities need to provide density,
mixed use component, parking flexibility, setback flexibility for landscape
components, etc.
3. Horizontal vs. vertical will work better fòr mixed density.
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Economic Development Committee
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4. Retail is much harder to negotiate vs. office space because the risk profile is
very different.
5. Cities need to speed up the process, be forthright and consolidate processes.
Density is the "norm" now - keep open space but do functional developments.
John Tze:
I. Cupertino Village worked because it was a niche center (this can't be done
with smaller retail sites) and the center had mixed use with apartments, hotel
and retail.
2. Fragmented ownership - the only way to be successful is to establish a
redevelopment agency.
3. Retail is not at the rental rates of other products right now.
4. There is no lack of demand for retail, but high end retail cannot pay enough
for the space. Developers can't afford to do stand alone retail anymore.
Horizontal mixed use that compliments each other will pull in the break-even
retail.
Dan Safier:
I. Changes in land use will be critical to make things work economically (mixed
use).
2. There haven't been a lot of projects where there has been a successful
incorporation ofretail and residential vertically.
3. Need to explore a redevelopment project area. There may be funds available
from the state for a housing component with mixed use projects.
Ron Cali:
I. No incentive for most owners - retail rents are not there to justifY renovation.
2. Target centers that are ripe, gather owners together for education on how to
revitalize.
In conclusion, the developers felt that Cupertino's demographics couldn't be more
attractive; the problem is space and competition in close proximity. Vallco needs
office space to support day use, retailers that people will go to, and high density
housing so people will shop. The committee also asked Ron Cali to assist them in
bringing other owners together to meet with the city regarding redevelopment.
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Economic Development Committee
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4.
MISCELLANEOUS COMMITTEE UPDATES
5.
ADJOURNMENT
The meeting was adjourned at 9:40 a.m.