CC Resolution No. 16-103 Adopting the 2016 Economic Development Strategic Plan (EDSP) in Order to Guide the City's Economic Development ActivitiesRESOLUTION NO. 16-103
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO
ADOPTING THE 2016 ECONOMIC DEVELOPMENT STRATEGIC PLAN (EDSP)
IN ORDER TO GUIDE THE CITY'S ECONOMIC DEVELOPMENT ACTIVITIES
WHEREAS, the City Council of the City of Cupertino authorized staff to develop the 2016
Economic Development Strategic Plan (EDSP) that guides economic activity in the City; and
WHEREAS, sales tax revenue in the City has been trending downwards due to: its location in a
highly competitive retail market which is a challenge to attracting national and regional retailers
to Cupertino due their presence within its trade area, the City's strong economy resulting in small
and independent ratailers struggling to find affordable space in the city or competing with the
service industry that is more parking intensive, a lack of affordable office spaces for growing,
midsize firms in the 20,000 sq. ft. to 100,000 sq. ft. range; and a lack of diversity in revenues for
the City's General Fund; and
WHEREAS, the City Council is interested in overcoming these issues and allow for continued
economic development and improved fiscal health of the City; and
WHEREAS, development of the EDSP included community outreach, including, hosting a
Community Forum on Local Business in August 2015 to engage community members, residents,
business owners, and elected officials in identifying assets, opportunities and potential challenges
to economic development in Cupertino and conducting telephone interviews with local business
leaders and real estate experts to collect information, solicit feedback and present initial findings;
WHEREAS, in-person meetings were facilitated with the City's Economic Development
Committee which includes representatives from the Chamber of Commerce; and
WHEREAS, the findings from these meetings and review of existing regulations of the City were
presented to the City Council at a publicly noticed meeting on August 2, 2016; and
WHEREAS, the City Council adopted the EDSP at a duly noticed regular meeting.
NOW, THEREFORE, BE IT RESOLVED:
Section 1.
That after careful consideration of the facts, exhibits, staff report, testimony and other evidence
submitted in this matter, the City Council does find as follows:
1. The foregoing recitals are true and correct and incorporated into this resolution by this
reference.
2. The EDSP has been prepared to ensure continued economic prosperity and development
within the City.
Reso lution No. 16-103
Page 2
3. Adoption of this resolution is exempt from the California Environmental Quality Act
because adoption of the EDSP in not a project, in that adoption of the Plan is an
administrative activity that will not result in physical changes in the environments (CEQA
Guidelines Section 15378(b)(5)).
Section 2.
The City Council does hereby adopt the 2016 Economic Development Strategic Plan as shown in
"Exhibit A" attached to this resolution.
AYES:
NOES:
ABSENT:
ABSTAIN:
Members of the City Council
Chang, Vaidhyanathan, Paul, Sinks, Wong
None
None
None
Grace Schmidt, City Clerk
EXHIBIT A
Economic Development Strategic Plan
Final Draft
September 13, 2016
prepared for:
City of Cupertino
STRATEGIC ECONOMICS
TABLE OF CONTENTS
I. INTRODUCTION .............................................................................................................. 3
II. SUMMARY OF FINDINGS ............................................................................................... 4
Opportuni ti es ................................................................................................................................... 4
Challenges ....................................................................................................................................... 5
Key Economic Development Issues ................................................................................................ 6
Ill. STRATEGIES AND ACTION ITEMS ............................................................................... 8
Issue A : Connectivity and Place -Making ....................................................................................... 10
Issue B : Support Growth of Small and Mid-S ize Businesses ........................................................ 14
Issue C : Retail Support and Development .................................................................................... 22
Issue D : Hospital ity ........................................................................................................................ 32
Issue E : Marketing ......................................................................................................................... 33
IV. APPENDIX: MATRIX OF STRATEGIES AND IMPLEMENTATION ACTIONS ............ 36
Final Economic Development Strategic Plan I September 13, 2016 2
I. INTRODUCTION
The City of Cupertino's Economic Development Strategic Plan (EDSP) is a policy document that will to
guide the City's economic development activities over the next three to five years . The EDSP is framed
around 11 strategies intended to strengthen existing businesses, foster a healthy economy, and maintain a
healthy fiscal position. For each strategy, the EDSP identifies a range of specific action items for the City
Council to consider. The strategies and action items are designed to strengthen the city's existing
competitive advantages for economic development, and take action to address disadvantages.
The EDSP was developed after completing an analysis of demographic, economic, and real estate market
trends, and receiving feedback from community members , business leaders and City Council. The
community outreach process included the following components:
• Community Forum on Local Businesses: In August 2015, the City of Cupertino hosted a
Community Forum to engage community members about the Economic Development Strategic
Plan. At the Forum, residents, business owners, City staff, and elected officials identified assets,
opportunities, and potential challenges related to economic development in Cupertino .1
• Interviews and Stakeholder Outreach: Strategic Economics completed telephone interviews with
local business leaders and real estate experts to collect information and solicit feedback, and
presented initial findings to the Cupertino Chamber of Commerce Legislative Action Committee.
• Economic Development Committee: Strategic Economics facilitated in-person meetings with the
Cupertino Economic Development Committee, which consists of four City staff members , two City
Coup.cil members and four representatives from the Cupertino Chamber of Commerce, to gather
input regarding technical findings and strategies .
• City Council Study Session: City staff and Strategic Economics presented the findings and
strategies from the Background Report to the Cupertino City Council for feedback.
The Background Report, completed in January 2016, provides the findings from the technical economic
analysis and community outreach, and identifies the City's competitive advantages, issues , and
opportunities for economic development.
This EDSP is organized into three sections: Following this Introduction, Section II presents a Summary of
Findings from the Background Report, as well as the key economic development issues for the EDSP to
address. Section III contains the Strategies and Action Items for implementing the EDSP .
1 The input from the Forum is summarized in th e Background Report.
Final Economic Development Strategic Plan I September 13 , 2016 3
II. SUMMARY OF FINDINGS
In order to provide a nuanced understanding of the City's economic opportunities and ch a llenges, Strategic
Economics analyzed local and regional trends in employment and businesses; Cupertino's fiscal position;
the office sector; the retail sector; and the hotel sector. Strategic Economics also collected input from
community members and stakeholders, including residents , business owners , City staff, and elected
officials. The results of the technical analysis and the input from the community engagement are
summarized in the Background Report. This section highlights the major opportunities and challenges
related to economic development in Cupertino from the Background Report.
OPPORTUNITIES
Cupertino's location in the region , high quality of life, highly educated workforce, and existing employment
base position the city well to attract and retain businesses. These opportunities are described below .
Location at the heart of Silicon Valley. Cupertino is located in western Santa Clara County, bordered by
Sunnyvale, Santa Clara, San Jose, and Saratoga. The city's location provides excellent access to Interstate
280, a freeway that is relatively less congested compared to other of the region's freeways such as Highway
101. I-280 connects the city to highly skilled workers throughout the South Bay and to the Sand Hill Road
Area , the hub of venture capital activity in the region .
Highly educated workforce. Nearly 80 percent of adults aged 25 and above in Cupertino have a college
degree, with 40 percent holding advanced degrees. Most residents are also employed in professional
occupations . The city's significant employment base attracts a net weekday inflow of26,700 workers , who
tend to be highly educated workers in professional occupations .
Excellent quality of life and first-rate school district. Cupertino's public schools have been recognized
for their exce ll ent quality both by the State of California and in the national media . The public school system
and overall quality of life are very attractive for new households, especially families with children .
Thriving technology sector. Cupertino has nine employers with 250 or more workers , of which five are in
technology or biotechnology . These include Apple, Seagate, Pegasystems , and Trend Micro . Other firms
seek to locate in Cupertino in order to do business with these large employers as a vendor, partner, or
consultant, and to take advantage of the city's location in the region .
High concentration of small firms and start-ups. Cupertino's strength in technology is not limited to
large employers. Approximately 20 percent of the city's small and midsized businesses (defined as those
with fewer than 250 employees) are in the technology industry .2 Many of the small and midsize professional
s ervices firms -such as le gal offices and consulting firms -support the technology sector, providing
services to Apple and other technology firms . Compared to the South Bay as a whole, the city also h a s a
very high concentration of very small firms (with one to four employees) in the professional and technical
services industries. Cupertino is attractive for these small start-ups because of the highly skilled,
entrepreneurial workforce th a t lives in the city and in neighboring communities .
2 The te chnology se ctor includ es businesses from several differe nt industri e s , including profess iona l and technical
se rvic es, tran sp ortati o n and di stribution , and manufacturing.
Final Economic Development Strategic Plan I September 13 , 2016 4
Strong demographics to support retail investments. High household spending power, excellent freeway
accessibility, growing employment, and the significant inflow of daily commuters create significant
potential for retail in Cupertino and other West Valley communities. Cupertino has been able to capitalize
on this potential by attracting newer retail investments , including 130,000 square feet in the Main Street
project, as well as renovations of existing centers like Homestead Square and Cupertino Village .
Healthy fiscal position. General fund revenues have gro w n steadily over the past several years as a result
of economic growth and new real estate investments . Revenue sources that are directly tied to economic
growth -including sales taxes , property taxes, and transient occupancy (hotel) taxes have grown steadily
over the past several years as the e conomy has recovered and Cupertino has attracted new investment.
Major development projects , such as Main Street and Apple Campus 2 , have also generated significant one-
time revenues from planning, zoning, engineering , permit processing fees , and other sources. Because of
its strong fiscal position, the City has been able to maintain service levels at 2 .80 to 3 .01 full time equivalent
(FTE) staff per thousand residents over the past ten years , even as Cupertino 's population grew significantly
during that time period .
CHALLENGES
While Cupertino has many economic assets, residents , business owners, City staff, and elected officials
have concerns related to Cupertino's ability to recruit and reta in an appropriate mix of businesses over time
while also maintaining the city 's excellent quality of life. These challenges are discussed below.
Highly competitive retail market. Cupertino has strong demographics for retail , and offers ample
neighborhood shopping centers where residents can shop for groceries and other daily needs . However,
since the downsizing of the Valko shopping mall , residents generally travel to nearby large shopping
centers like Westfield Valley Fair, Santana Ro w , and Stanford Shopping Center for dining and
entertainment opportunities and to shop for clothing and other "specialty" goods . The presence of these
large centers in close proximity poses a challenge for attracting similar types of national and regional
retailers in Cupertino .
Challenging environment for independent retailers. Cupe1tino's strong economy has driven significant
demand for retail space , resulting in low vacancies and high rents . As a result, small and independent retail
businesses reportedly struggle to find affordable space in the city . There is also a concern that traditional
retailers selling goods are being replaced with services (e .g., tutoring centers, day cares) that require more
parking than some existing shopping centers can provide and may not generate the same level of sales tax
revenues .
Lack of affordable office spaces for growing, midsize firms. Compared to the South Bay, Cupertino has
fewer businesses and employees in firms employing between 10 and 250 workers, and the number of
businesses in this size range is declining, partly due to a lack of office space to accommodate them. Strong
demand for office space , combined with competition from corporate users like Apple , results in scarce
leasing opportunities in the 20,000 to 100,000 square foot range. Although larger spaces are also in short
supply, 20,000 to 100 ,000 square feet spaces are in particularly high demand for growing companies such
as midsize technology startups. As a result, many expanding midsize firms have opted to relocate in other
nearby communities .
Final Economic Development Strategic P lan I September 13, 2016 5
Lack of diversity in revenues for the City's General Fund. In FY 2012-13, Apple contributed total
revenues of $9 .2 million , or approximately 18 percent of Cupertino's General Fund budget.3 Most of the
revenues that Apple generates come from sales, property, and utility user taxes . Overall , the opening of
Apple Campus 2 is expected to increase Apple's share of tax revenue. In addition to the direct tax r eve nues
generated by Apple, the company indirectly generates tax revenues from its suppliers, consultants , and other
vendors to the General Fund budget. At the same time , the decline ofVallco Shopping Mall, as well as the
loss of major business-to-business sales tax producers (including Hewlett-Packard), have reduced other
sources of sales tax revenues in Cupetiino . Although the City has partially offset the decline in sales tax by
renegotiating an existing sales tax rebate agreement with Apple, these trends have decreased the diversity
of revenue sources for the City 's General Fund.
Concerns about protecting Cupertino's quality of life. According to the 2014 community survey,
residents believe that the most important issues facing Cupertino are affordable housing (33 percent), traffic
(21 percent), and controlling growth (17 percent).4 Many residents are also concerned about preserving the
quality of the public school system as the community continues to grow and change .
KEY ECONOMIC DEVELOPMENT ISSUES
Based on Cupertino's economic opportunities and challenges described above, there are five key issues
defined in the EDSP for the City to prioritize over the next three to five years. These include :
A. Connectivity and Place-Making: Excellent bicycle, pedestrian , and transit access is becoming
increasingly important for economic development, as more companies consider transportation
alternatives in making location decisions . Moreover, place-making and connectivity improvements
contribute to a high quality of life and help mitigate the traffic impacts of new growth and development.
Strategies including investing in public realm improvements on Stevens Creek Boulevard to support
the implementation of the Heart of the City Specific Plan, and supporting local and regiona l investments
that expand transit, pedestrian, and bicycle access to employment and activity centers in Cupertino.
B. Supporting Growth of Small and Midsize Businesses: Cupertino is very attractive for start-ups and
small companies. However, these businesses are often priced out of Cupertino as they grow due to high
rents and a lack of available office space. Strategies to support the growth of small and mid-size
businesses include facilitating the development of new office spaces in the range of 20 ,000 to 100 ,000
square feet ; encouraging development of incubator spaces for start-ups in order to diversify the city's
industrial mix to include life sciences and other emerging technologies ; expanding visitation and
outreach to existing small and midsize firms ; and providing technical assistance and resources .
C. Retail Support and Development: Cupertino's strong household spending power and growing
employment base create significant demand for retail. Howeve r, while the city offers many
neighborhood shopping centers , residents typically travel outside of the city for dining, entertainment,
and specialty shopping opportunities. By working with property owners to upgrade aging shopping
centers , supporting emerging restaurant, entertainment, and shopping clusters, and developing policies
for regulating food trucks and other mobile services, the City can help foster thriving retail destinations
that pro vi de goods and services desired by community members .
3 This does not include one-time revenues from the construction of Apple C ampus 2. The fiscal analysis related to
App le and presented here is from Keyser Marston Associates , "Economic and Fiscal Imp acts Generated by Apple in
Cupertino-Current Facilities and Apple Campus 2", prepared for Apple Inc., 2013.
4 C ity of Cup ertino -2014 Community Satisfaction Survey, Godbe Research , 2014.
Final Economic Development Strateg ic Plan I September 13, 2016 6
D . Hospitality: Cupertino's growing technology sector drives strong demand for hotel rooms and
conference spaces . While this results in significant hotel tax revenues for the City 's General Fund,
business travelers often strnggle to find rooms in or near Cupertino and local civic organizations have
difficulty finding affordable space for meetings and events. By monitoring the need for additional hotel
rooms and meeting space and entitling additional hotel development as appropriate, Cupertino can
support diversification of the General Fund, and provide hotel rooms and event space to meet the needs
of visitors, businesses , and civic organizations.
E . Marketing: Cupertino is well known throughout the region -and the world -as the home of Apple,
and the city is considered a highly prestigious business address second only to the North Valley cities
of Palo Alto, Mountain View, and Menlo Park. Maintaining and expanding Cupertino's reputation as
an innovation center will help the city continue to attract a diverse range of businesses .
The strategies, implementation actions , and potential partners to address each of these issues is described
in the following section.
Final Economic Development Strategic Plan I September 13, 2016 7
Ill. STRATEGIES AND ACTION ITEMS
As discussed in Section II, the technical analysis and community engagement activities resulted in the
identification of five key e conomic development issues for the EDSP to address . These key issues include :
A. Connectivity and Place-Making
B . Supporting Growth of Small and Midsize Businesses
C . Retail Support and Development
D. Hospitality
E. Marketing
For each of these five issues, the EDSP identifies specific strategies for the City to undertake over the next
three to five years . The key issues and strategies to address them are summarized in Figure 1.
The remainder of this section identifies implementation action items for addressing each of the key issues.
Action items include continuing the City's ongoing efforts to support economic development in Cupertino ,
as well as new action items that the City Council may choose to implem ent to advance economic
development. All action items are classified into one of three categories based on the amount of additional
staff time , legislative action, or budget required for implementation:
• Category 1: Require small amounts of additional staff time in order to implement, but no major
legislative action or budget allocations.
• . Category 2: Require significant staff time and/or legislative action by the City Council.
• Category 3: Require additional budget allocation, as well as significant staff time and/or legislative
action .
The remainder of this chapter describes each potential implementation action item in more detail , and
identifies the lead agency from the City as well as likely partners . A full matrix of all the economic
development issues , strategies , and action items is presented in the appendix to this report.
Final Economic Deve lopment Strategic Plan I September 13, 2016 8
ies for Economic Develo ment
A. Connectivity and Place-1. Invest in public rea lm improvements to support the development of the
Making City's commercial/retail and mixed-use areas as pedestrian-oriented
Invest in infrastructure corridors that serve as welcoming gateways to Cupertino and provide
improvements that support a variety of community gathering spaces .
economic development and 2 . Support local and regional transportation improvements that
mitigate the traffic impacts of improve transit, pedestrian and bicycle connections to employment
new growth. and activity centers in Cupertino.
3. Facilitate the development of new office and industrial/flex space
for small and midsize companies to expand in Cupertino .
B. Support Growth of Small 4. Support development of business incubator, accelerator,
and Midsize Businesses coworking, shared, and "on-demand" workplaces
Provide physical spaces and 5. Continue and strengthen visiting and outreach programs for small
business support to small and and midsize businesses (fewer than 250 employees).
midsize businesses.
6 . Develop a cohesive business support network offering technical
assistance and access to financing, with a focus on enabling
growing businesses to stay in Cupertino .
7. Work with retail property owners and tenants to revitalize and
C. Retail Support and upgrade aging shopping centers on Stevens Creek Boulevard.
Development 8. Support emerging restaurant, entertainment, and shopping clusters
Foster thriving retail that serve as destinations for workers , residents, and visitors.
destinations that provide 9. Develop po licies for regulating food trucks and other mobile goods and services desired services , including the types of mobile services that are permitted, by community members. the locations and times when they may operate, and measures for
mitigating environmental, traffic, and other impacts .
D. Hospitality 10 . Provide adequate hotel rooms and event venues to support the
Support diversification of the City 's General Fund and meet business needs .
City's General Fund, and
provide hotel rooms and
event space to meet the
needs of visitors , businesses,
and civic organizations .
E. Marketing 11. Develop an integrated approach to marketing Cupertino to brokers,
Maintain and expand business owners, and others as a center for innovation and the
Cupertino's reputation as an heart of Silicon Valley.
innovation center.
Final Economic Development Strategic Plan I September 13 , 2016 9
ISSUE A: PLACE-MAKING AND CONNECTIVITY
STRATEGY 1
Invest in public realm improvements to support the development of the
City's commercial/retail and mixed-use areas as pedestrian-oriented
corridors that serve as welcoming gateways to Cupertino and provide a
variety of community gathering spaces.
The General Plan calls for updating the look and feel of the City's neighborhood shopping centers and
commercial corridors to improve bicycle and pedestrian connections to surrounding residential
neighborhoods and create welcoming gateways into Cupertino . The General Plan calls out Stevens Creek
Boulevard as Cupertino's core commercial corridor, and the Heart of the City Specific Plan identifies
streetscape design principles for different segments of the Stevens Creek corridor, including street tree ,
landscaping , and street furnishing concepts, and specifies design standards for new development. The City
ha s also adopted Conceptual Plans for North DeAnza Boulevard (between 1-280 and Stevens Creek), De
Anza Boulevard (between Stevens Creek and Bollinger Road), and the Vallco Shopping District that
provide direction on streetscape and connectivity improvements in these areas. By creating a more
welcoming environment for Cupertino residents and visitors , the new street trees and other improvements
will help support successful retail along these corridors .
Ongoing City Actions:
1.1 Implement the land use and design guidelines from the Heart of the City Specific Plan; require
new development to contribute to planned streetscape and infrastructure improvements. The
Specific Plan lists contributions and in-kind improvements by developers as the primary mechanism
for implementing the streetscape improvements identified in the plan .
o Lead Agency: Planning
o Partners: Stevens Creek Property Owners and Developers
1.2 Implement the land use and transportation policies in the General Plan and Conceptual Plans to
ensure that site, building, street, and streetscape design support the City's goals for community
character and connectivity. The plans call for improvements to neighborhood centers and commercial
corridors throughout the City.
o Lead Agency: Pl anning
Category 1 Actions:
1.3 Support community programming at activity centers along major corridors. The General Plan
identifies a series of special centers and nodes along major corridors, including the Oaks Shopping
Center, Cupertino Memorial Park, DeAnza College, the North Crossroads Node, City Center, and the
Civic Center . By partnering with civic organizations, retailers, and property owners to sponsor
programming and e vents in these nodes , the City can help bring new activity to the corridors .
o Lead Agencies: E conomic Development, Planning , Parks and Recreation
o Partners: Chamber of Commerce, DeAnza College , Retail Businesses and Property
Owners
Final Economic Deve lopment Strateg ic Plan I September 13 , 2016 10
Category 2 Actions:
1.4 Develop implementation plans for improving major corridors such as Stevens Creek Boulevard,
including identifying phasing and specific funding sources for planned improvements. For
example, a comprehensive implementation strategy for the Heart of the City Specific Plan would
identify the desired phasing for the streetscape improvements called for in the plan, provide updated
construction costs, and identify the full range of potential funding sources . Adopting an implementation
strategy could position the City to apply for grants and seek other funds, above and beyond
contributions from developers . In addition, a clear strategy could help lay the groundwork for the
eventual establishment of a BID or PBID (see discussion of BIDs and PB IDs above, under Strategy 7).
o Lead Agency: Planning
o Partners: Property Owners and Developers , Business Owners, Residents
1.5 Pursue grants for streetscape and other improvements as they become available. For example , the
One Bay Area Grant (OBAG) program provides grants for local streets and roads preservation,
bicycle and pedestrian improvements, and streetscape improvements. At least 70 percent of OBAG
funds must be spent in Priority Development Areas (PDAs); as a PDA, the Stevens Creek corridor
would be eligible for this funding . The Santa Clara Valley Transportation Authority (VT A)
administers the OBAG capital grant program in Santa Clara County . VTA has fully allocated its
share of OBAG dollars through FY 2015-16. After FY 2015-16, however, more OBAG funds may
become available.
0
0
Lead Agency: Public Works, Planning
Partners: Santa Clara Valley Transportation Authority
(VTA)
Category 3 Actions:
1.6 Allocate funds in the City's capital improvement program to implement landscaping, pedestrian,
and other infrastructure improvements envisioned in the Heart of the City Specific Plan and
other Conceptual Plans. Setting aside capital improvement funds from the City budget would help
facilitate faster implementation of the Plan, and help meet the local match required by many grant
programs .
o Lead Agency: Public Works, Finance, Planning
STRATEGY 2
Support local and regional transportation improvements that improve
transit, pedestrian and bicycle connections to employment and activity
centers in Cupertino.
Access to transit and excellent bicycle and pedestrian connections are becoming increasingly important for
economic development, as more companies consider transportation alternatives in making location
decisions. Facilitating transit , walking, and bicycling can also help reduce strain on the automobile network,
improve health and quality of life for Cupertino residents , and help mitigate the traffic impacts of new
growth and development -a major concern for many community members .
Final Economic Development Strategic Plan I September 13 , 2016 11
Ongoing City Actions:
2.1 Implement and regularly update and the Bicycl e Transportation Plan, including pursuing grants
as they become available. In 2015, the City Council adopted the 2015 Bikeway Improvement
Prioritization Update to the 2011 Cupertino Bicycle Transportation Plan. Together, these documents
provide a roadmap designed to encourage bicycling as a safe, practical , and healthy alternative to the
automobile. The City has also established a Bicycle Pedestrian Commission charged with reviewing,
monitoring , and making recommendations regarding bicycle and pedestrian traffic, parking , education
and recreation, and other transportation issues. The Commission and City staff work together to
implement the Bicycle Transportation Plan and expand the share of trips taken by on foot or by bicycle.
o Lead Agency: Public Works
o Partners: Bicycle Pedestrian Commission
2.2 Require major employers to meet transportation demand management goals. The General Plan
Mobility Element requires large employers to develop and maintain transportation demand
management (TDM) programs to reduce vehicle trips generated by their employees, and de ve lop a
tracking method to monitor results.
o Lead Agencies: Planning, Public Works
2.3 Actively participate in regional transportation planning processes and advocate for decisions that
meet Cupertino's needs. Public Works, Planning, and other departments regularly participate in
regional transpo rtation planning processes to advocate for programs that are consistent with the goals
and policies of Cupertino's General Plan . City staff also work with neighboring cities to address
regional transportation and land use issues of mutual interest.
o Lead Agency: Public Works, Planning
2.4 Work with Caltrans and the Santa Clara Valley Transportation Authority to explore new
regional transit options, such as on Highway 85. In antici pation of a potential Santa Clara County
Transportation Sales Tax measure on the ballot in the November 2016 election, the City of Cupertino
h as been working with other West Valley and North County cities on developing a mass transit project
that would serve this portion of the region's jobs utilizing VTA and concentrating on the 85 Corridor.
In April 2016, Cupertino's Director of Public Works introduced the concepts to the Chamber of
Commerce Legislative Action Committee and held a Business Workshop to faci litate a more detail ed
discussion .
o Lead Agency: Public Works
Category 1 Actions:
2.5 Work with major employers to leverage corporate transportation programs (e.g., shuttles, bike
share) to benefit the community as a whole. Apple and other large emp lo yers operate shuttles , bike
share, and other transportation programs to help their employees travel to and around Cupertino without
a car. While e mploy ers may nee d to restrict access to some of these services in order to maintain
corporate security , there may be opportunities to expand on som e existing corporate transportation
programs -such as bike share -to serve the bro ader community .
o Lead Agency: Public Works , Planning, Economic Development
o Partners: Major Employers
Fina l Eco nom ic Deve lopme nt Strateg ic Plan I September 13, 2016 12
Category 2 Actions:
2.6 Work with regional and county agencies to explore new funding sources for local and regional
transit improvements. As revenues from the fed eral and state gas tax es decline , funding for local and
regional transportation improvements is becoming increasingly scarce . MTC and Bay Area cities and
counties are exploring new options, including new taxes and fees (such as the proposed Santa Clara
County Transportation Sales Tax Measure), revenues from California's cap-and-trade program , and
property-based land financing or "value capture" tools (such as Enhanced Infrastructure Financing
Districts and Community Facilities Districts). By remaining actively involved in these conversations,
Cupertino staff can ensure that the City is aware of emerging tools and sources , and represented in
conversations about how funding should be allocated .
o Lead Agency: Public Works, Planning
2.7 Pursue grants for high priority transportation projects, including bicycle and pedestrian
improvements, as they become available. In addition to improvements on Stevens Creek, this could
include walking and bicycling paths that connect employment areas with destinations such as local
retail centers.
o Lead Agency: Public Works, Planning
2.8 Prioritize investments in bicycle, pedestrian, and other transportation improvements that
connect workers and workplaces with local retailers. These include bicycle paths and sidewalk
improvements that directly connect the City's major employment centers with retail and restaurant
nodes .
o Lead Agency: Public Works , Planning
2.9 As part of the approvals process for large commercial development projects, design a community
benefits policy that encourages projects to provide transportation demand management (TOM)
programs, potentially including funding for a community shuttle. As discussed above, the General
Plan Mobility Element already contains a similar provision for ensuring major employers provide TDM
programs . This policy could be extended to major development projects , and include incentives for
developers (as well as employers and shopping center owners) to contribute funding for a community
shuttle that would improve connections among major community destinations such as local civic and
cultural centers , retail centers, schools , and nearby Caltrain stations .
o Lead Agency: Planning
Final Economic Deve lopment Strateg ic Plan I September 13 , 2016 13
ISSUE B: SUPPORT GROWTH OF SMALL AND MID-SIZE
BUSINESSES
STRATEGY 3
Facilitate the development of new office and industrial/flex space for small
and midsize companies to expand in Cupertino.
Cupertino is highly attractive for start-ups and small companies . However, a very tight market for office
space, combined with the high share of office space occupied by Apple, results in scarce leasing
opportunities in the 20,000 to 100 ,000 square foot range . As a result, many expanding midsize firms have
opted to relocate in other nearby communities. In the long term, retaining these growing companies will
require providing office space to meet their needs .
Ongoing City Actions:
3.1 Create opportunities for small office users by encouraging developers to reserve space for small
offices. For example, the City negotiated an agreement with Sand Hill Property Company to reserve
space for small office users in the Main Street project. These would range from 3,000-10 ,000 square
feet and would include small business ventures, co-working spaces, etc.
Category 2 Actions:
3.2 Increase allocation for office development for mid-size businesses in the 20,000-100,000 sq. ft.
range. The City lacks office space in the 20,000 to 100,000 square foot range that can accommodate
growing companies and midsize startups.
o Lead Agency: Planning
3.3 Create a new development allocation category for Innovation Space. This allocation would provide
for the development of new laboratory and R&D space for businesses in the greentech, biosciences , life
sciences, and other creative industries.
o Lead Agency: P lanning
3.4 Cons id er establish in g a new "Innovation District" in the Bubb Road and/or Bandley DriveNalley
Green Drive areas . By formally designating some of the less intensive, Light Industrial areas in the
City as "Innovation Districts ," the City could encourage and incentivize the reuse and rebuilding of
existing buildings to create spaces appropriate for small to midsize businesses in sectors such as
greentech, biosciences , life sciences, and other creative industries. For example , the designation could
apply to the Bubb Road area (roughly bounded by Stevens Creek Boulevard on the north, McCl e llan
Road on the south, Highway 85 on the east, and Imp erial A venue on the west) and/or the Light
Industrial properties located on the west side of Bandley Drive and north of Valley Green Drive. The
City could support th e Innovation Di s tricts with a coordinated branding and marketing strategy, and
explore incentives (such as development allocations for innovation space) to encourage property
owners to dedicate new and existing space to greentech , biosciences, and other innovation uses . The
new "Inno vation District" wou ld a lso require or incentivize street improvements and transportation
demand management measures aimed at encouraging walking and bicycling and mitigating the traffic
impacts of new businesses , as well as the provision of other uses th at wo uld serve the district (food
uses , etc).
Final Economic Development Strategic Plan I September 13, 2016 14
o Lead Agency: Planning
3.5 Review and update land uses in the zoning designations related to Office and Industrial uses to
ensure that they arc adaptable to current and future business needs. Some of the uses in the
existing zone code are outdated and do not reflect current industry needs. The code should be revisited
to better align with current and emerging space needs, and to more clearly state the types of uses (such
as biosciences, greentech, etc.) that the City envisions for different locations within Cupertino.
o Lead Agency: Planning
3.6 Allow for the conversion of underutilized ground floor retail space to office space. In
underperforming shopping centers, allow for spaces to be occupied by smaller office users, providing
that there is sufficient parking and infrastructure to support office uses. Note that this may require a
zoning change in some locations, such as in the Heart of the City Specific Plan area.
o Lead Agency: Planning
3.7 Conduct parking study to review parking ratios for retail/commercial/office uses. Note that
changes in parking ratios may require zoning and regulation changes in some locations, such as the
Heart of the City Specific Plan area.
o Lead Agency: Planning
STRATEGY 4
Support development of business incubator, accelerator, co-working,
shared, and "on-demand" workplaces.
Co-working, shared, and on-demand spaces provide flexible office space where entrepreneurs, freelancers,
or other individuals can rent a desk at a relatively low cost. Examples include We Work and NextSpace (see
text box below). Start-up accelerators or incubators provide mentorship, training, and sometimes investment
capital an d/or lo w-cost space for emerging tech companies, often in exchange for a small amount of equity .
While some start-up accelerators have proven highly profitable,5 co-working businesses typically operate
on a thin profit margin,6 and some incubators that provide low-cost space for start-ups have required public
subsidy.7 For example, the San Jose BioCube was originally funded by the San Jose Redevelopment Agency
(see text box below).
Cupertino already has at least one co-working space: Pacific Workplaces, an 18,000 square foot location
on Stevens Creek Boulevard that provides flexible co-working spaces for approximately 300 small
businesses. By supporting these types of flexible workspaces , the City can continue to nurture Cupertino's
existing ecosystem of start-ups and help grow the next generation of innovative businesses.
5 Tomio Green , "Top Startup Incubators and Accelerators: Y Combinator Tops with $7 .8 Million in Value," Forbes,
April 30, 2012, http://www.forbes.com /sites/tomiogeron/2012 /04 /30 /top-tech-incubators-as-ranked-by-forbes-y-
combinator-tops-with-7-bill ion-in-value/.
6 DeskMag, "The 2nd Global Coworking Survey: How Profitable Are Coworking Spaces?"
http ://www .deskmag.com/en/how-profitable-are-coworking-spaces-177 .
7 Diana Samuels , "Silicon Valley Incubators Fee l the Pain of Redevelopment's Demise ," Silicon Valley/San Jose
Bu siness Journal, July 13 , 2012, http://www.bizjournals.com/sanjose/print-edition/2012/07 /13/silicon -valley-
incubators-feel-the.html?page=all .
Final Economic Development Strategic Plan I September 13, 2016 15
Category 2 Actions:
4.1 Allow for the conversion of underutilized ground floor retail space to incubator or co-working
uses. There are a number of underutilize d retail sites (such as second-floor retail space and spaces
located to the side or rear of a property) th at could be converted to smaller co-working spaces or
incubators . Note that the conversion of some existing ret ai l buildings may require property owners to
make investments in infrastructure or building improvements to serve such businesses .
o Lead Agency: Planning
Case Study: We Work and NextSpace
WeWork and NextSpace are privately-funded providers of co-working spaces with national and
international locations. WeWork currently has about six locations in San Francisco and one in
San Jose, while NextSpace has five Bay Area locations. Membership with these spaces can
take many forms and could include : occasional access, day passes , long term passes to
common workspaces, dedicated workstations and offices, and conference rooms. Typically,
these co-working spaces tout the benefits of connecting with other innovators and creative
enterprises as a key value proposition of membership.
Case Study: San Jose BioCube
The San Jose BioCube is a business incubator providing facilities for life science, nanotech,
and cleantech startup companies. These facilities include office space, laboratory facilities, and
business support services to a variety of startups who can either locate directly onsite or utilize
BioCube's facilities on a pro-rated basis. Originally called the San Jose BioCenter , it was
created in 2004 under the San Jose Bioscience initiative sponsored by the San Jose
Redevelopment Agency. Although public funding was phased out with the agency's dissolution
2012, the facility was able to survive with the assistance of private investment and a name
change to the "BioCube." In 2014 the BioCube became 100 percent self-sufficient.
Sources : wework .com ; nextspace .co m; San Jose BioC ube website (http ://www.sanjosebiocube.com); "Silicon Valley
incubators feel the pain of redevelopment's demise", Silicon Valley Business Journal, 2012
(http ://www. bizjournals .com /sanjose/print-edition/2012/07 / 13/silicon-valley-incubators-feel-the .html); "San Jose
BioCube Creates Self-Sustaining Biotech Dream", PRWeb , 2013
(http://www.prweb .com/releases /2013/5/prweb 10716857 .htm).
Category 3 Actions:
4.2 Seek out partnerships for developing a new small business incubator or accelerator, and consider
contributing City funds if needed. The City may explore potential partners like DeAnza Community
College, the Santa Clara County Library District, other nearby universities , colleges , or other
organizations, to operate a small incubator or accelerator. The City may contribute funding to support
the incubator spaces , either by directly subsidizing its operations or by encouraging private developers
to provide low-cost spaces for this type of use as part of a community benefits process for approving
large commercial projects (see discussion under Strategy 3).
o Lead Agency: Economic D evelop ment
o Potential Partners: DeAnza Community College, Santa Clara County Libra1y District
Final Economic Development Strategic Plan I September 13, 2016 16
STRATEGY 5
Continue and strengthen visitation and outreach programs for small and
midsize businesses (fewer than 250 employees).
The Economic Development Division of Cupertino 's Community Development Department already
conducts a robust program of business outreach aimed at providing new and growing businesses with
information about doing business in Cupertino (see "Ongoing City Efforts " described below). The City's
business outreach program could be expanded and refined to focus on retaining small and midsize
businesses , especially those that are at risk of moving out of the City as they grow. Fostering a diverse
range of firms will help build a resilient business ecosystem that can better withstand future changes in
broader economic conditions .
Ongoing City Actions:
5.1 Conduct outreach to existing businesses, including regularly visiting local businesses to discuss
programs, events, and/or incentives that may be of interest. Economic Development staff visit local
businesses and attend meetings of the Chamber of Commerce and other local organizations to provide
information on business resources offered by the City and partner organizations (such as the Silicon
Valley Economic Development Alliance and the Silicon Valley Small Business Development Center).
o Lead Agency: Economic Development
5.2 Distribute and regularly update "How to Start Your Business in Cupertino" booklet. The "How
to Start Your Business in Cupertino" booklet is published by the Economic Development Division and
provides step-by-step instructions and informational links for developing a business plan, selecting a
location, applying for permits and licenses , and accessing incentives.
o Lead Agency: Economic Development
5.3 Continue to host the annual Small Business Symposium. The City of Cupertino and the Cupertino
Chamber of Commerce co-host an Annual Small Business Symposium that provides workshops
covering essential topics for those wanting to start a new business or who are ready to grow their
existing businesses . In past years, workshop topics have included marketing and social media, accessing
capital , legal issues, and green business practices.
o Lead Agency: Economic Development
o Partners : Cupertino Chamber of Commerce, Cupertino Library
Category 1 Actions:
5.4 Provide assistance to new and expanding businesses with obtaining needed permits and licenses
from the City and other agencies. The Planning and Economic Development Divisions could work
together to explore a "concierge" service that would assign specific staff members to work closely with
high-priority applicants, including providing a single point of contact to expedite the City permitting
and licensing process. Staff could also assist businesses in receiving permits from other agencies .
o Lead Agencies: Planning and Economic Developm ent
Fina l Economic Development Strategic Plan I September 13 , 2016 17
5.5 Identify growing, small and midsize companies that are at risk of moving out of Cupertino as
they expand, and focus existing business retention efforts on these companies. Economic
development staff could identify growing companies that are at risk of leaving the City in order to
expand, and help connect them with resources such as those offered by the Silicon Valley Economic
Development Alliance and the Silicon Valley Small Business Development Center.
o Lead Agency: Economic Development
5.6 Work with local brokers to match growing companies to space in Cupertino. Finding office space
in Cupertino is a significant barrier for many companies that wish to grow in the City . Building on
existing relationships with brokers, Economic Development staff can help provide information on
office space vacancies to small and midsi ze businesses that have been identified as being at risk of
leaving the City.
o Lead Agency: Economic Development
5.7 Conduct an online survey of existing businesses to determine key advantages and disadvantages
of doing business in Cupertino. This survey could be conducted on a regular (e.g., annual basis) help
evaluate existing City services and programs, and help identify challenges or gaps in the resources
available to local businesses .
o Lead Agency: Economic Development
Category 2 Actions:
5.8 Conduct regular outreach to growing small and midsize businesses to determine what services
would help them expand in Cupertino, including individual visits, roundtables or focus groups, ·
and citywide events. These visits, roundtables , or events could focus on key audiences (such as
growing midsize companies) or important topics identified in the online survey (described under
Category l Actions). Regular, formal discussions with businesses could inform the City's future
business outreach and retention efforts .
o Lead Agency: Economic Development
Final Economic Development Strategic Plan I September 13, 2016 18
STRATEGY 6
Develop a cohesive business support network offering technical assistance
and access to financing, with a focus on enabling growing businesses to
stay in Cupertino.
Cupertino staff maintain excellent relationships with local and regional business organizations that provide
technical assistance to businesses, and regularly refers local businesses to those technical service providers .
There may be opportunities to build on these relationships to expand the range of services and resources
available to Cupertino businesses, or for the City to provide services directly to businesses .
Ongoing City Actions:
6.1 Meet regularly with local and regional business organizations and technical assistance providers
to build partnerships. Economic Development staff regularly attend meetings held by the Cupertino
Chamber of Commerce (including the Chamber's Legislative Action Committee and the Asian
American Business Council), the Silicon Valley Economic Development Allianc~, CREW Silicon
Valley ( a commercial real estate professional organization), and the Rotary Club of Cupertino .
o Lead Agency: Economic Development
o Partners: Cupertino Chamber of Commerce, Silicon Valley Economic Development
Alliance, CREW Silicon Valley, Rotary Club of Cupertino
6.2 Continue to hold quarterly meetings with Economic Development Committee. The Committee
consists of four City staff members, two City Council members and four representatives from the
Cupertino Chamber of Commerce. The Committee's activities are targeted at enhancing the Cupertino
business environment, developing business and community relationships , working with existing
business to identify and eliminate any barriers to retention or redevelopment, recruiting compatible
businesses to the City, and supporting a strong local economy and fiscal base to enable to the City to
provide excellent municipal services .
o Lead Agency: Economic Development
Category 1 Actions:
6.3 Explore additional opportunities to connect small businesses with existing micro-credit providers
or other small business lenders. For example , the Silicon Valley Small Business Development
Corporation in San Jose offers workshops and individual business counseling on access to capital ,
including bank finance , Small Business Administration (SBA) loans, and venture capital.
o Lead Agency: Economic Development
o Partners: Silicon Valley Small Business Development Corporation , Small Business
Administration , Silicon Valley Talent Partnership
Final Economic Development Strategic Plan I September 13 , 2016 19
Category 2 Actions:
6.4 Partner with technology, design, and arts programs at De Anza College and local middle and
high schools to offer assistance to Cupertino businesses, such as support in building websites and
applications. For example, students could help local businesses design webs it es , participate in
hackathons, launch social media advertising campaigns, etc .
o Lead Agency: Economic Development
o Partners: D e Anza College , Cupertino Union and Fremont Union School Districts ,
Library
6.5 Establish the City of Cupertino as a Kiva Zip trustee to find and endorse local businesses seeking
to borrow money on the Kiva Zip website. Kiva Zip is a microfinancing platform that connects
entrepreneurial borrowers with individuals interested in supporting small businesses . A Kiva Zip
"trustee," which can be a City or other organization, recommends borrowers for a loan based on the
borrower's qualifications and local knowledge. The trustee can support borrowers in other ways but
does not have any fiduciary responsibility for the loan . Trustees take on no direct financial risks, but
their reputation is based on the repayment of the lo ans that they endorse . See the text box below for an
example of the City of Oakland's KivaZip Trustee Program.
o Lead Agency: Economic D evelopment
o Partners: Kiva Zip
Category 3 Actions:
6.6 Contract with business assistance providers to provide targeted services to Cupertino businesses,
or hire staff and provide services in-house. Rather than referring businesses to the Silicon Valley
Small Business Development Corporation or other business technical assistance organizations, the City
could contract directly with providers to offer services in Cupertino, and/or hire additional Economic
Development staff with the capacity to provide training, counseling, and other services in-house. This
could include worki ng with Small Business Developm ent Centers of Northern California to sponsor a
local office (see text box below for more inforniation).
o Lead Agency: Economic Development
o Partners: Small Business Development Centers of Northern California
6.7 Provide seed capital to start a revolving loan fund to provide small loans for small and midsize
businesses in Cupertino for business expansion and other business needs. Revolvi ng loan funds
provide financing for small businesses that are meet local goals (such as creating loca l employment
opportunities) and are creditworthy, but do otherwise do not qualify for bank loans . See the text below
for an examp le sponsored by the City of Berkeley.
o Lead Agency: Econom ic Development
Fina l Eco nomic Devel o pmen t Strategic Plan I September 13 , 2016 20
Case Study: City of Oakland's Kiva Zip
Trustee Program
Kiva Zip is a microfinancing platform that
connects entrepreneurial borrowers with
individuals interested in supporting small
businesses in the U.S. A Kiva Zip "trustee,"
which can be an entire organization,
recommends borrowers for a loan based on
the borrower's qualifications and local
knowledge. The trustee can support
borrowers in other ways but does not have
any fiduciary responsibility for the loan.
Truste.es take on no direct financial risks, but
their reputation is based on the repayment of
the loans that they endorse. In 2013, the City
of Oakland became the first city government
to serve as a Kiva Zip trustee. Since that time,
the City has endorsed 33 loans for a total
value of approximately $235,000, and a
repayment rate of 87 percent. The City uses
billboard advertising to promote the program,
which supports locally owned businesses,
often in food service .
Advertising for Oakland's Kiva Zip
program on a local bus shelter
Image: Strategic Economics
Case Study: Berkeley Revolving Loan Fund
The Berkeley Revolving Loan Fund is a source of financing for small businesses that
otherwise do not qualify for conventional bank loans. Borrowers still need to be creditworthy
and satisfy other criteria, such as demonstrating that their business creates local
employment opportunities . The fund was started in 1984 with a $500 ,000 grant from the
federal Economic Development Administration, initially targeting minority-owned
businesses in the South Berkeley neighborhood. In 2011, the City expanded the program
to be citywide, and brought in an independent underwriter. Loans are approved by a Loan
Administration Board composed of members with expertise in business operations, legal
issues, and commercial lending. The target loan size is between $35,000 to $50,000, with
a term of up to seven years. Borrowers have flexibility to use the credit for working capital,
tenant improvements, or asset purchases. Since the program began, the fund has grown to
$700 ,000. The total amount loaned since 1984 is nearly $1.6 million , with 38 borrowers. It
is estimated that the program has created 176 new private sector jobs, and saved 38 private
sector jobs. Currently , there are six borrowers with active loans totaling $405,000. These
borrowers include a high-end tent manufacturer, a reseller of biofuels, and a cooking school.
Sources : Kiva Zip (https ://zip .kiva.org/trustees/573); Oakland Local , "Kiva Zip Loans Fuels Oakland Small
Business Community", 2015 (http://oaklandlocal.com/2015/05/kiva-zip-loans-fuels-oakland-small-business-
community/); City of Berkeley Office of Economic Development (http://www .ci.berkeley .ca .us/loanfund/); City of
Berkeley , Economic Dashboard, 2015.
Final Economic Deve lopment Strategic Plan I September 13 , 2016 21
Case Study: Small Business Development Centers of Northern California
The Small Business Development Centers of Northern California are a network of business
assistance offices whose services include educational and training seminars and counseling at low-
or no-cost. The NorCal network is operated out of CSU Humboldt, and the network is funded by
the Small Business Administration, with satellite offices typically at the county level. The Silicon
Valley SBDC, in downtown San Jose, is the satellite office serving Santa Clara County. NorCal
SBDC also has a handful of strategic initiatives with services tailored to particular industry sectors,
including technology , procurement, international trade, and green business. For example, the "Tech
Futures Group", with an office in Berkeley, advises tech startups and growing firms with advisors
that have expertise navigating the particular issues confronted by high growth technology firms,
such as intellectual property strategy and venture capital fundraising .
Sources: Small Business Development Centers of Northern California (http://www.norcalsbdc.org); The Tech Futures Group
(http://www.techfuturesgroup.org ).
ISSUE C: RETAIL SUPPORT AND DEVELOPMENT
STRATEGY 7
Work with retail property owners and tenants to revitalize and upgrade
aging shopping centers on Stevens Creek Boulevard.
The Cupertino General Plan identifies the Stevens Creek corridor as the "Heart of the City" -the key mixed-
use area that functions as Cupertino's do w ntown. The General Plan and the Heart of the City Specific Plan
(discussed in more detail above, under Strategy 1) envision an improved corridor that provides a greater
sense of place , more community identity, and a memorable experience for residents, workers and visitors .
The qualities of successful pedestrian-oriented retail districts are explained in more detail in the te xt box
on the following page.
One key part of implementing this vision is revitalizing and upgrading aging shopping centers on the
corridor. While the smaller, strip shopping centers on Stevens Creek Boulevard have generally been
successful at attracting new tenants, many have not been upgraded in years . In particular, the eastern
segment of Stevens Creek Boulevard -extending from North De Anza Boulevard to the city border - is
characterized by relatively small, shallow lots with limited visibility, parking constraints , and relatively
underp erforming retailers. Programs and policies that incentivize property owners and businesses to
reinvest in aging shopping centers will help support continued, successful retail activity on the corridor,
and contribute to upgrading the look and feel of Stevens Creek to create a welcoming gateway into
Cupertino .
Final Economic Development Strategic Plan I September 13 , 2016 22
Characteristics of Successful Pedestrian-Oriented Retail Districts
At the August 2015 Community Forum on Local Businesses, Cupertino residents cited
Burlingame Avenue (Downtown Burlingame), Castro Street (Downtown Mountain View),
Downtown Los Gatos , and Downtown Campbell as examples of attractive destinations for
dining , shopping, and entertainment. These districts share some common elements that
contribute to their success :
• Concentration of retail within a convenient walking distance: A critical mass of
retail and services within a comfortable walking distance enables visitors to park once
and walk to their destination, or browse shopping and dining options on foot.
Successful pedestrian-oriented retail districts are often quite compact. For example, the
majority of activity on Burlingame Avenue is concentrated within a quarter-mile section
of the street, or about a five-minute walking distance from end to end.
• Pedestrian-friendly atmosphere: Burlingame Avenue, Castro Street, Downtown Los
Gatos, and Downtown Campbell all have wide sidewalks and attractive street trees,
lighting, and other furniture. The storefronts are active, and many restaurants have
invested in attractive outdoor dining.
• High concentration of restaurants : In these successful retail districts, about one-
quarter to one-third of businesses are restaurants or food stores.
• Comprehensive parking management strategies: Mountain View and Los Gatos
provide ample visitor parking in public lots and garages located within walking distance
of downtown shops and restaurants, while restricting long-term parking in surrounding
residential neighborhoods.
• Active merchants' associations: Downtown Burlingame, Downtown Mountain View,
and Downtown Campbell all have active merchants' associations that partner with the
cities in sponsoring marketing, community events , and other activities.
Downtown Burlingame
Image : Strategic Economics
Downtown Mountain View
Imag e: Strategic Economi cs
Fin al Economic Development Strategic Plan I September 13, 2016 23
Category 2 Actions:
7.1 Provide incentives in key locations for upgrading or intensifying existing retail and/or replacing
retail with mixed-use development. Some small parcels with existing retail centers may not be able
to accommodate sufficient parking to meet current code requirements , limiting the property owner's
ability to upgrade , replace the existing retail space , or redevelop with higher-intensity retail or mixed-
use project. Providing some flexibility on parking requirements for these properties, allowing for
mixed-use development, and/or providing incentives such as increased heights or densities on
challenging parcels, could encourage property owners to invest in major improvements or redevelop
aging retail buildings.
o Lead Agency: Planning
o Partners: Retail Property Owners, Developers
7.2 Develop design standards for retail space in mixed-use developments to ensure that new retail
space contributes to the desired look and feel of the community, and functions well for retailers.
Some mixed-use projects struggle to lease ground floor retail space in part due to the limited visibility
from the street, lack of signage, poor vehicle and pedestrian access, low ceiling heights, and/or lack of
specific requirements such as adequate ventilation for restaurant cooking. Providing guidelines on
appropriate design could help ensure the success of future ground floor retail space . While the Heart of
the City Specific Plan includes design guidelines for building exteriors , the plan does not provide
specific standards for ground floor retail.
o Lead Agency: Planning
o Partners: Retail Property Owners , Developers
7.3 Conduct outreach to Stevens Creek property and business owners to explore the potential to form
a Business Improvement District (BID) or Property-Based Business Improvement District
(PBID) on all or part of the Stevens Creek corridor, to fund marketing, landscaping,
maintenance, and/or other local needs. BIDs and PB IDs are a type of special assessment district in
which business or commercial property owners vote to be assessed a fee to fund programs and projects
within the business area. Typically, a BID or PBID provides resources to develop marketing campaigns ,
increase lobbying efforts , secure additional funding, and invest in public improvements and
beautification projects in partnership with a city. By pooling private resources , business owners in BIDs
collectively pay for activities that they could not afford on an individual basis. A BID or PBID on
Stevens Creek Boulevard (or on some segment of the corridor) could pay for these types of activities ,
potentially including some of the landscaping and other streetscape improvements identified in the
Heart of the City Specific Plan (see discussion under Strategy 8, below).
o Lead Agencies: Planning and Economic Development
o Partners: Stevens Creek Business Owners and/or Property Owners
Final Economic Development Strategic Plan I September 13, 2016 24
Category 3 Actions:
7.4 Provide grants or loans to retail property owners and/or tenants to encourage them to upgrade
their fa~ades. Fai;:ade improvement programs provide matching grants or loans to incentivize retail
property owners and/or tenants to invest in improvements to the exterior of their buildings. Typical
improvements include new paint, installation or replacement of signs or awnings , and refurbishments
to non-structural architectural features (e.g., trim, cornices , windows, etc.). In order to receive a grant
or loan, applicants must meet certain criteria such as contributing a matching amount of money to the
project, complying with local design guidelines , and receiving all necessary city permits. In addition to
providing funding , some programs also provide design assistance to ensure that fai;:ade improvements
meet city standards . Fai;:ade improvement programs are often targeted to a particular district, such as a
downtown or major retail corridor. In Cupertino, this type of program could be targeted to Stevens
Creek Boulevard to help achieve the goals of the Heart of the City Specific Plan. Prior to 2011, most
fai;:ade improvement programs in California were funded by redevelopment agencies . Since the
dissolution of redevelopment in 2011, however, some cities have managed to find other funding
sources, including Santa Cruz and Dublin (profiles in the text box below).
o Lead Agencies: Planning and Economic Development
o Partners : Property Owners, Retail Businesses
Final Economic Development Strategic Plan I September 13 , 2016 25
Case Study: City of Santa Cruz Fa,;ade
Improvement Program
Since 1994, the City of Santa Cruz has offered
grants for fa<;:ade improvements to its retail
businesses , with over 100 grants disbursed since
the program's inception benefitting more than 260
small business establishments. Any ground floor
retail business (or commercial property
containing such a business) can apply for a grant,
as long as each storefront benefiting from
improvements has at least three years remaining
on its lease. While the program prioritizes painting
entire buildings, improving public safety lighting,
and anti-graffiti measures, signs, awnings , and
landscaping can also be funded as part of an
overall fa<;:ade improvement project. Grants are
available for up to $10,000 for the entire project ,
and up to $5,000 matching grant per storefront.
Up to $1,000 is provided for a City-selected
designer. The grant program is paid for with the
City's General Fund.
Case Study: City of Dublin Sales Tax
Reimbursement Program.
Enacted in 2009, the Sales Tax Reimbursement
Program in the City of Dublin reimburses up to
fifty percent of the net new sales tax paid to the
city after eligible physical improvements have
been made to retail businesses. Participants
generating between $100 ,000 and $500,000 in
net new annual sales tax revenue are eligible for
annual reimbursements over five years, up to the
total costs of improvements . Participants
generating over $500,000 are eligible for annual
reimbursements over ten years. Costs covered
by the program include exterior improvements,
interior tenant improvements, and site
improvements such as parking and landscaping.
A participant in the program ordinarily needs to be
a business newly locating in Dublin, not an
existing business .
Santa Cruz Fac;ade Improvement
Program Brochure
Image : Economic De ve lopment and
Red eve lopment Department, City of Santa Cruz.
Sources : Economic Development and Redevelopment Department, City of Santa Cruz
http ://cityofsa ntacruz.co m/departments/econo mic-development/business-support/facade-improvement-program ;
"Grant puts new face on riot-damaged business; City's Facade Improvement Program has helped 240 other sites ",
Santa Cruz Sentinel, 2010 http ://www .santac ruzsentinel.com /a rticle/ZZ/20100616/N EWS/100618140 ; City of
Dublin , http ://www.d ubli nca . gov/16 72/City-l ncentives.
Final Economic Development Strategic Plan I September 13 , 2016 26
STRATEGY 8
Support emerging restaurant, entertainment, and shopping clusters that
serve as destinations for workers, residents, and visitors.
Because retail sales taxes are a major contributor to the General Fund, a thriving retail market is important
to the City 's fiscal health. Retail nodes that offer a diverse range of shopping, dining, and entertainment
options can also serve as community gathering places for residents and workers, and help attract new
visitors to the city. Vallco Shopping Mall used to fill this role in Cupertino, and may do so once again when
it is eventually redeveloped (however, Valko Shopping Mall is subject to a separate Specific Plan process,
and is therefore outside the focus of this Economic Development Strategic Plan). The new Main Street
project also provides some new retail and community space. In addition to continue to monitor the success
of these larger projects, the City can also help support smaller retail and community gathering nodes
throughout Cupertino.
Ongoing City Actions:
8.1 Meet regularly with retail and commercial brokers to answer questions, build relationships, and
get updates on projects. Economic development staff maintain excellent relationships with retail and
commercial brokers who are active in the Cupertino real estate market.
o Lead Agency: Economic Development
8.2 Represent the City at ICSC and other local and regional conferences. Economic Development staff
regularly attend conferences held by the International Council of Shopping Centers (ICSC) and other
local and regional retail recruiting events to market Cupertino to retailers.
o Lead Agency: Economic Development
8.3 Maintain "Eats 95014" app/website and "Cupertino at a Glance" website. "Eats 95014" is a local
restaurant app that showcases Cupertino dining and food opportunities including restaurants, grocery
stores, the farmer's market, and vineyards. The app provides information on store hours, parking
information, noise level, directions, and links to websites. Users can search and sort restaurants by type
of cuisine and services offered. The "Cupertino at a Glance" website provides a map with business
information and website links for Cupertino's cultural, civic, recreational, and dining facilities.
o Lead Agencies: Economic Development, Communications
Category 1 Actions:
8.4 Work with brokers and retail site selection professionals to market Cupertino to desired tenants,
such as high-end restaurants and comparison retailers, and match retailers with appropriate sites
in Cupertino. Cupertino should continue communicating with brokers and site selection professionals
to inform them of the types of retail that are desired by the community, and to match businesses to
existing properties.
o Lead Agency: Economic Development
o Partners: Retail Brokers, Property Owners, Retail Businesses
F ina l Eco nomic Development Strategic Plan I September 13 , 2016 27
Category 2 Actions:
8.5 Create a marketing campaign to increase awareness of local retailers and service providers
among workers employed at Cupertino businesses. The City can develop a new campaign to inform
workers in Cupertino about the range of restaurants, retailers, and personal service providers av ailable
in the city in order to encourage them to shop and dine locally and support small businesses . Examples
of promotional materials could include a mobile app featuring local businesses, printed posters , and a
new website.
o Lead Agency: Economic Development
o Partners: Major Employers , Local Retail Businesses
8.6 Seek out social media partnerships to promote shopping local. There are many examples of cities
partnering with private companies such as Yelp and American Express to promote local shopping
events that could be models for Cupertino (see text box examples, below).
o Lead Agency: Economic Development
Case Study: Yelp Shop Local Pledge
In 2012 , Yelp created a program to encourage users to shop at independent retailers in their local
areas for the holiday season. Users were asked to pledge to shop locally. For participants in the
South Bay/Peninsula area, Yelp sponsored several events to promote independent retailers, such
as happy hours and pop up events.
Case Study: American Express Shop Small and Small Business Saturday
Shop Small is a program sponsored by American Express to promote small businesses.
Participants in the free program can get personalized marketing materials and other assistance
promoting their businesses through the platform as well as a listing on the Shop Small Map.
"Neighborhood Champions " are local business associations, chambers of commerce, or other
community organizers that organize events to promote Small Business Saturday, the first Saturday
after the Thanksgiving holiday. In the past, American Express has offered credits for purchases
made on that day.
Sources: Yelp Official Blog, 2012, https://www.yelpblog.com /2012/12 /get-your-local-shop-on-with-yelp-this-holiday-
season; American Express Shop Small , https ://www .americanexpress .com/us/small-business /shop-small/.
Final Economic Development Strateg ic Plan I September 13, 2016 28
STRATEGY 9
Develop policies for regulating food trucks and other mobile services,
including the types of mobile services that are permitted, the locations and
times when they may operate, and measures for mitigating environmental ,
traffic, and other impacts.
Mobile services include food trncks , mobile auto care services, mobile dry cleaning, and any other goods
and services offered from a vehicle. These services create an opportunity to fill existing gaps in services ,
stimulate economic activity, and activate underutilized spaces with events and programming. In Silicon
Valley, many major corporations regularly host mobile vendors on campus in order to provide convenient
services for workers. However, the increasing popularity of mobile services has also raised concerns in
many communities about public safety, sanitation, traffic, and competition with existing brick-and-mortar
businesses. Many California cities are revisiting their regulatory framework to ensure that mobile services
can continue to provide needed goods and services without detracting from local businesses or the
community's quality of life.
Ongoing City Efforts:
9.1 Issue limited special events permits for food truck events, and require mobile service vendors to
apply for a Cupertino business license in order to operate in the City. Currently, Cupertino
companies or other organizations can apply for up to four special events permits per year to host food
truck or other mobile services events. Food trucks are required to obtain a Cupertino business license
in order to operate in the City.
o Lead Agencies: Planning, Economic Development
9.2 Support the weekly Off the Grid food truck festival in the Whole Foods parking lot. Off the Grid
Cupertino is held every Tuesday evening in the Whole Foods parking lot on Stevens Creek Boulevard
and features a rotating assortment of food trucks.
o Lead Agencies: Planning, Economic Development
Category 1 Actions:
9.3 Work with Chamber of Commerce to reach out to mobile service vendors, ensure that they aware
of existing local and state laws and regulations , and involve them in Chamber activities. Currently,
mobile service vendors receive information about joining the Cupertino Chamber of Commerce when
they apply to receive a business license. Planning and Economic Development staff could partner with
Chamber staff to conduct additiona l, proactive outreach at Off the Grid and other mobile service events ,
in order to inform vendors about opportunities to participate in Chamber activities and ensure that
businesses are aware of local and state laws and regulations .
o Lead Agencies: Planning and Economic Development
o Partners: Chamber of Commerce
Category 2 Actions:
9.4 Conduct outreach to Cupertino residents and the local business community on appropriate
locations and regulations for mobile services. Brick-and-mortar business owners sometimes perceive
mobile vendors a s having an unfair advantage because they do not pay rent or prop erty taxes , and in
Fina l Econom ic Deve lopment Strategic Plan I September 13 , 2016 29
some instances may avoid paying sales tax as well. Regulating the number of food trucks that can gather
in a particular site or district may help address retailers' concerns about impacts on local businesses, in
addition to addressing traffic and safety issues. Economic development programs that seek to activate
underutilized areas or attract more street activity (such as the Fremont Street Eats program described
in the text box below) can also help brick-and-mortar retailers recognize an advantage to allowing food
trucks or other mobile services to locate nearby . By conducting outreach to concerned business owners
and residents, the City can help educate stakeholders about the potential impacts of food trucks , and
determine what types of policies or regulations might be best suited for Cupertino .
o Lead Agencies: Planning and Economic Development
o Partners: Retail Businesses, Residents, Mobile Food Vendors
9.5 Develop policies to allow and manage mobile service vendors, which may include a new licensing
and/or permitting process. Policies should be tailored to meet Cupertino's specific needs and
conditions . For example, based on community and business feedback and further study, the City could
create new licensing or permitting processes that restrict mobile vendors to specific geographic areas
within the city, times of day, or special events. The text box below provides an example of the City of
Mountain View's recently adopted permitting process for mobile vendors.
o Lead Agencies: Planning and Economic Development
o Partners: Retail Businesses , Residents, Mobile Food Vendors
Final Economic Development Strategic Plan I September 13 , 2016 30
Case Study: Mountain View's Permitting Process for Mobile Vendors
In 2013, the City of Mountain View passed an ordinance to address concerns about traffic flow
and public safety arising from the increased presence of mobile vendors in that community. The
ordinance also streamlined street vendor permitting to account for mobile services operating on
both public and private property, rather than on designated sites . Mountain View's rules address
safety and congestion by requiring mobile vendors to maintain a minimum distance of 100 feet
from schools, and by limiting vending on private property to a maximum of four hours on a
particular site per day, with no more than three vendors on a property simultaneously. A
separate Temporary Use permitting process was created to allow for longer hours and larger
clusters of vendors at food truck rallies and other special events. In Mountain View's downtown
area , vendors are prohibited from operating on the most centralized streets. This restriction is
an additional safety measure that also mitigates some of the competitive concerns of brick-and-
mortar stores in that area.
Case Study: Fremont Street Eats
Beginning in 2013, the City of Fremont began working with the Fremont Chamber of Commerce
to establish a weekly food truck event in Downtown Fremont. Fremont Street Eats is now a
weekly event in its third season, sponsored by the Chamber. Street Eats was intended as an
economic development program intended to help activate the Downtown. Many existing
businesses, including small retailers and restaurants, consider the program a successful
economic development effort because it helps bring pedestrian traffic to an area that was
historically underused.
Fremont Street Eats
Image: Fremont Chamber of Commerce
Sources : Interviews with Chris Costanzo, Code Enforcement, City of Mountain View and Jessica von Borek , Deputy
City Manager, City of Fremont; Intuit Network , "Food Trucks Motor Into the Mainstream," December 2012,
http ://network .intuit.com/wp-contenUuploads/2 012/12/lntuit-Foo d-Tru cks-Report .pdf; Silicon Valley Economic
Development Alliance , Unpublished White Paper.
Final Economic Deve lopment Strategic Plan I September 13 , 2016 31
ISSUE D: HOSPITALITY
STRATEGY10
Provide adequate hotel rooms and event venues to support the City's
General Fund and meet business needs.
Transient occupancy taxes (TOT) generated by hotels are a significant source of revenues to the City's
General Fund. Cupertino's existing hotels perform very strongly, driven by business travel associated with
the expanding tech sector. Occupancy rates are very high (approaching 90 percent on weekdays), and
business travelers often struggle to find rooms in or near Cupertino unless they book well ahead. In addition,
because of the competition for hotel conference space, Cupertino civic organizations have struggled to find
affordable space for meetings and events. The strong office market, along with Apple's planned expansion ,
suggest that demand for hotel rooms in Cupertino will remain strong for the foreseeable future . Expanding
the supply of hotel rooms and event space could help support Cupertino's businesses and civic
organizations , and support increased TOT revenues. In addition, enabling more business travelers to stay
in Cupertino could help support local restaurants and other retailers.
Category 1 Actions:
10.1 Monitor the need for additional hotel rooms and meeting space. Continue tracking hotel
occupancy rates and conference bookings to determine whether the hotel supply is meeting demand.
o Lead Agency: Planning , EconomiG Development
Category 2 Actions:
10.2 Consider increasing allocation for new hotel development, prioritizing proposals that include
ample meeting and event space for businesses and community use. As part of a public benefits
agreement for a new hotel project, the City Council could require developers to set aside low-cost
space for civic and community organizations to hold events and meetings.
o Lead Agency: Planning
Final Econom ic Development Strategic Plan I September 13 , 2016 32
ISSUE E: MARKETING
STRATEGY 11
Develop an integrated approach to marketing Cupertino to brokers,
business owners, and others as a center for innovation and the heart of
Silicon Valley.
Cupertino is well known throughout the region -and the world -as the home of Apple, and the city is
considered a highly prestigious business address second only to the North Valley cities of Palo Alto ,
Mountain View, and Menlo Park . The City's current website and other marketing materials are largely
geared towards highlighting business resources and promoting existing retailers and other local businesses
and organizations. In order to help maintain and expand the City's reputation and attract a diverse range of
businesses, these materials could be repositioned to communicate more directly to the business community
and market the City's unique assets, including its innovative tech sector, central location, and highly skilled
workforce.
Ongoing City Actions:
11.1 Continue "C upertino Business Buzz" electronic business newsletter featuring updates on local
small businesses. The Business Buzz is published on a quarterl y basis and highlights business
resources and events as well as city initiatives related to economic development.
o Lead Agency: Economic Development
11.2 Continue to offer the GreenBiz Cupertino program, which provides support to interested
small/mid-size businesses , non-profit organizations, and schools in navigating the statewide
Green Business Program certification process. The City 's GreenBiz team works with businesses
to create a plan for conserving energy and water, minimizing material use and disposal, preventing
pollution, and cutting costs . The team also connects businesses to services , free equipment, and
financial incentives to help achieve certification requirements. The program has been recognized as
a leader in environmental sustainability with awards from ICLEI , the Silicon Valley Leadership
Group , Green Technology, and Acterra.
o Lead Agency: GreenBiz Cupertino
Category 1 Actions:
11.3 Update the City 's marketing materials with current economic data. The City 's website and market
materials require regu lar updating in order to provide more current information on demographics,
employment by sector, and top sales tax producers .
o Lead Agency : Economic Development
11.4 Update the Economic Development and business-related webpages as part of the City's overall
website redesign. Economic Development can partner with the City 's Communications team to
upgrade business-related we bpages and ensure consistency wi th the redesigned City we bsite.
o Lead Agencies : Economic Developm ent , Communications
Final Economic Development Strategic Plan I September 13, 2016 33
11.5 Expand the resources available on the Economic Development website by providing links to or
embedding maps and information from other relevant websites. For example , this could include
the Silicon Valley Economic Development Alliance 's commercial real estate listing website (AREAS
Silicon Valley), and the business resources available on the Santa Clara County Library District's
website.
o Lead Agencies : Economic Development, Communications
Category 2 Actions:
11.6 Partner with other West Valley cities to develop marketing materials that market the sub-
region as a center of innovation. The City may consider partnering with other West Valley cities,
which share some common characteristics, to broaden the reach of its marketing efforts and
establish the West Valley as a hub of innovation. This coordination could take place through the
Silicon Economic Development Alliance, which is comprised city and county economic
development professionals throughout San Mateo, Santa Clara, Santa Cruz, and southern Alameda
Counties and of which Cupertino is an active member.
o Lead Agency : Economic Development
o Partners: Silicon Valley Economic Development Alliance
Category 3 Actions:
11. 7 Develop a brand identity focused on economic development (logo, wordmark, and colors) The
City could develop a new brand identity (separate from the existing citywide identity) to support
economic development initiatives. The brand identity would be intended to communicate Cupertino's
assets , such as the City's strengths in the innovation industries , including arts and design. The
marketing identity should be developed through a collaborative process involving focus groups, one-
011-one interviews , and other outreach to the business community to help define a focused marketing
approach . The City may also wish to hire a m arke ting and communications specialist to assist with
this effort. The text box below provides examples of brand identities developed by the cities of
Fremont, San Jose, and Santa Cruz.
o Lead Agencies: Economic Development, Communications
o Partners: Chamber of Commerce, Businesses
11.8 Redesign the Economic Development website, "Cupertino Business Buzz" electronic business
newsletter, and other marketing efforts with a consistent brand. As part of establishing a
consistent brand for economic de ve lopment , review existing communications materials to identify
potential areas for improvement, and create new materials as necessary to reflect the brand.
o Lead Agencies: Eco nomic D evelopment, Communications
o Partners : Chamber of Commerce, Businesses
Final Economic Development Strategic Plan I September 13 , 2016 34
Branding and Marketing Campaign in Fremont, Santa Cruz, and San Jose
In 2013, Fremont commissioned a communications consulting firm to help with a media
relations campaign. This effort led to the creation of a state-of-the-art website ,
thinksiliconvalley.com, devoted to the City 's economic development communications. The
website introduces and reinforces a branding message that closely associates the City with
Silicon Valley, by dubbing Fremont "Silicon Valley East."
Other cities looking to attract business investment , such as Santa Cruz and San Jose, have
also rolled out visually appealing web presences that rely on many of the principles a typical
startup venture would use. Common to all these websites are a prominent brand message
(San Jose is "The Capital of Opportunity", while Santa Cruz is "Where Work & Culture
Converge"), vivid imagery (particularly through photographs), and evolving content , though
a blog , newsfeed, and links to social media .
Fremont
SAN JOSE
CAPITAL OF OPPORTUNITY
INOUSTRlfS IHSOURC[S CUlTUAE PIIOJHTS jOURNAl
Sources : "Hitching website wagon to tech capital puts Fremont on the map", Ragan·s PR Daily; City of Fremont,
http://thinksiliconvalley.com ; City of San Jose ,http://sjeconomy.com; City of Santa Cruz,
http://choosesantacruz .com.
Final Economic Development Strategic Plan I September 13 , 2016 35
IV. APPENDIX: MATRIX OF STRATEGIES AND IMPLEMENTATION ACTIONS
Ke Issues, Strate ies, and Menu of Potential Action Items
Issue A: Connectivity and Place•Making
Strategy 1. Invest in public realm
improvements to support the
development of the City's
commercial/retail and mixed-use
areas as pedestrian-oriented
corridors.
1.1 Implement the land use 1.3 Support community programming
and design guidelines from the at activity cen ters along major
Heart of the City Specific Pl an: corridors.
require new development to
contribute to planned
streelscape and infra structure
improvements.
1.2 Implement the la nd use
and transportation policies in
the General Plan and
Conceptual Plans to ensure
that site, building, street. and
streetscape design support the
City's goals for community
character and connectivity.
Final Economic De ve lopment Strategic Plan I September 13, 2016
1.4 Develop an implementation plan
for improving major corridors such as
Stevens Creek Boulevard, including
identifying phasing and specific
funding sources for planned
improvements.
1.5 Pursue grants for streelscape and
other improvements as they become
available.
1.6 Allocate funds in the City's capital
improvement program to implement
landscaping, pedestrian , and other
infrastructure improvements
envisioned in the Heart of the City
Specific Plan and other Conceptual
Plans.
36
Strategy 2. Support loca l and
re gional tran sportation
improvements that improve
transit, pedestrian and bicycle
connections to employment and
activity ce nters in Cupertino.
. :• .
2.1 Imp le ment and regularly
update the Bicycle
Transportation Plan, including
pursuing grants as they
become available.
2.2 Require major employers
to meet tra nsportation demand
management goa ls.
2.3 Actively participate in
reg iona l transportation
planning processes and
advocate for decisions that
meet Cupertino's needs.
2.4 Wo rk with Caltrans and the
Santa Clara Va lley
Transportation Authority to
explore new regiona l transit
options, such as on Highway
85.
2.5 Work with major employers to 2.6 Work wilh regional and coun ty
leverage corporate transportation agencies to explore new fun ding
programs (e.g., shuttles, bike share) lo sources for local and regional transit
benefit the community as a whole. improvements.
2.7 Pursue gra nt s for high priority
tran sportation projects as they
become available.
2.8 Prioritize investments in bicycle,
pedestrian, and other transportation
improve ments that connect worke rs
and wo rk places with local retai lers.
2.9 As part of the approvals process
for large co mmercia l deve lopment
projects, design a community benefits
policy tha t encourages projects to
provide transportation demand
management programs, potentially
including a community shuttle.
Fi nal Economic Deve lopment Strategic Plan J September 13, 2016 37
Issue B: Support Growth of Sm all and Midsize Busi nesses
Strategy 3. Facilitate the
development of new office and
induslriaVnex space for small and
midsize companies to expand in
Cupertino.
3.1 Encourage office
de velopers to rese rv e space for
small offices.
Fina l Economic Development Strategic Plan I September 13 , 2016
3.2 Increase allocation for office
development for mid-size businesses
in the 20,000-100 ,000 sq. fl . range.
3.3 Create a new development
allocation category for innovation
space.
3.4 Consider establishing a new
"Innovation Districr in the Bubb Road
and for Bandley DriveNalley Green
Drive areas.
3.5 Review and update land uses in
the zon ing designations related to
Office and Industrial uses to adapt to
current and future business needs.
3.6 Allow for the conversion of
underutilized g round floor re tail space
to office space .
3. 7 Conduct parking study to review
parking ratios for re tail! commercial!
office uses .
• Allowing for the conversion of
underutilized ground floor retail
space to office space may require a
zoning change in some locations ,
such as in the Heart of the City
Specific Plan area.
38
Strategy 4. Support development
of business incubator,
accelerator, coworking, shared,
and ·on-demand" workplaces
Strategy 5. Continue and
streng then visitation and
outreach programs for small and
midsize businesses {fewer than
250 employees).
5.1 Conduct outreach to
existing businesses, including
regularly visiting loca l
businesses to discuss
programs, events, and/or
incentives that may be of
interest.
5.2 Distribute and regular ly
update "How to Start Your
Business in Cupertino· booklet.
5.4 Provide assistance to new and
expanding businesses with obtaining
needed permits and licenses from the
City and other agencies.
5.5 Identify growing , small and midsize
companies that are at risk of moving
out of Cupertino as they expand, and
focus existing business retention
efforts on these companies.
5.6 Work with local brokers to match
5.3 Continue to host the annua l growing companies to space in
Sma ll Business Symposium. Cupertino.
5. 7 Conduct an online survey of
existing businesses to determine key
advantages and disadvantages of
doing business in Cupertino.
Final Economic Development Strategic Plan I September 13, 2016
4.1 All ow for the conversion of 4 .2 Seek out partnerships for
underutilized ground floor retail space developing a new sma ll business
to incubator or coworking uses. incubator or accelera tor, and
consider contributing City funds if
needed.
5.8 Conduct regu lar outreach to
growing small and midsize
businesses to detennine what
services would he lp them expand in
Cupertino, including individual vis its,
roundtables or focus groups, and
citywide events.
• Note that the conversion or retail
space for other, higher-intensity uses
may requ ire property owners to make
in vestments to serve such
businesses. See Strategy 7 for
discussion of property owner
incentives.
39
Strategy 6. Develop a cohesive
business support network
offering technical assistance and
access to financing, with a focus
on enabling growing businesses
to stay in Cupertino.
6.1 Meet regu larly with local
and regiona l business
organizations and techni cal
assistance providers lo build
partnerships.
6.2 Continue to ho ld quarterly
meetings with Economic
Development Committee.
6.3 Explore additional opportunities to 6.4 Partner with technology programs
connect sma ll businesses with existing at De Anza Co ll ege and at middle
micro-credit providers or other small and high schools to connect students
business le nders. to Cupertino businesses. Students
could offer techn ical support in
building websites and applications,
6.6 Contract with business
assistance providers to provide
targeted services to Cupertino
businesses, or hire staff and provide
services in -house.
partic ipating in hackathons, and other 6.7 Provide seed capital lo start a
activities. revo lving loan fund to provide sma ll
6.5 Establish the City of Cupertino as
a Kiva Zip trustee to find and endorse
loca l businesses seeking to borrow
money on the Kiva Zip website.
(Trustees have no financia l liability for
loans and do not handle the loans ,
but thei r reputa tion is tied to the
repayment rate of the borrowers they
endorse.)
loans for small and mid size
businesses in Cupertino for bus iness
expansion and other business needs .
Final Economic Development Strategic Plan I September 13, 20 16 40
Issue C: Retail Support and Development
Strategy 7. Work with retai l
property owners and tenants to
rev ital ize and upg rade ag ing
shopping centers on Stevens
Creek Boulevard.
Strategy 8. Support emerging
restaurant , entertainment, and
shopping clusters that serve as
destinations for workers,
res idents, and visitors.
8.1 Meet regularly with reta il
and commercial brokers to
answer questions , build
re lationships , and get updates
on projects
8.2 Represent the City at ICSC
and other loca l and regional
conferences.
8.3 Maintain ·Eats 950 14.
app/website and ·cupertino at
a Glance· website
8.4 Work with brokers and retail site
se lection professionals to market
Cupertino to desired tenants, such as
high-end restaurants and comparison
retailers, and match retailers with
appropriate sites in Cupertino.
Fina l Economic Deve lopmen t Strategic Plan I Septe mber 13, 20 16
7 .1 Provide incentives in key
locations for upgrading or intensifying
retail and/or replacing retai l with
mixed-use development.
7 .2 Develop design standards for
retail space in mixed-use
developments to ensure that new
retail space co ntributes to the desired
look and fee l of the community, and
functions well for retailers.
7 .3 Conduct outreach to Stevens
Creek property and business owners
lo explore the potential to form a BID
or PBID on all or part of the Stevens
Creek corridor, to fund marketing ,
landscaping , maintenance . and/or
other local needs .
8.5 Create a marketing campaign to
increase awareness of local retailers
and service providers among workers
employed at Cupertino businesses.
8.6 Seek out socia l media
partnerships to promote shopping
loca l.
7 .4 Provide grants or loans to retail
property owners and /or tenants to
encourage them to upgrade their
fai;ades.
41
Strategy 9. Develop po licies for
regulating food trucks and other
mobile services, including the
types of mobile services that are
perm itted, the locations and
times when they may operate.
and measures for mitigating
environmenta l, traffic, and other
impacts.
Issue D: Hospitality
Strategy 10 . Provide adequate
hotel rooms and event venues lo
support the City's General Fund
and meet business need s.
9.1 Issue limited specia l events
permits for food truck even ts,
and requ ire mobile service
vendors to apply for a
Cupertino business license in
order to operate in the City.
9.2 Support the weekly O ff th e
Grid food truck festival in the
Whole Foods parking lot.
9.3 Work with Chamber of Commerce
to reach out to mobile service vendors,
ensure that they aware of existing
local and state laws and regulations ,
and involve them in Chamber
activities.
10.1 Monitor the need for additional
hotel rooms and meeting space .
Fina l Eco nomic De ve lopmen t Stra tegic Plan I September 13, 20 16
9.4 Conduct outreach to Cupertino
residents and the tocal business
community on appropriate locations
and regulations for mobile services.
9.5 Develop policies to allow and
manage mobile service vendors.
which may include a new licensing
and/or permitting process.
10.2 Consider increasing allocation
for new hotel development,
priori tizing proposals that include
ample meetin g and event space for
businesses and community use .
42
Issue E: Ma rketing
Strategy 11. Develop an 11.1 Continue •cupertino
integrated approach to marketing Business Buzz" electronic
Cupertino to brokers, business business newsletter featuring
owners, and others as a center updates on local small
for innovation and the heart of
Si licon Valley.
businesses
11 .2 Continue to offer the
GreenBiz Cupertino program ,
wh ich provides support to
11 .3 Update the City's marketing
materials with cu rrent economic da ta.
11.4 Update the Economic
Development and business-related
webpages as part of the City's overall
website redesign.
11.5 Expand the resources available
interested sma ll/mid-size on the Economic De velo pment
businesses , non-profit website by provi ding links to or
organ izations and schools in embedd ing maps and information from
navigating the statewide Green other relevant websites.
Business Program certification
process
Fina l Economic Deve lopment Strategic Plan J Se ptember 13, 20 16
11 .6 Partner with other West Valley
cities to develop a common message
and coord inate marketing efforts.
11.7 Develop a brand identity
focused on economic development
(logo, wo rdmark, and colors).
11 .8 Redesign the Economic
Development website, ·cupertino
Business Buzz~ electronic business
newsletter, and other marketing
efforts with a consistent brand.
43