Chao, Liang-Fang 3-12 1-50pm_UnredactedLiang-Fang Chao Sent via email - Monday 3/12/20181:51 p.m.
Dear Vallco Planner and City Council members,
The City Council for years has promised to revitalize Vallco Shopping Mall, which
every one understood it to mean return Vallco Shopping Mall to its glory so that the
entire 1.2 million square feet of space is occupied by vibrant and up-to-date tenants that
serve the retail needs of Cupertino area residents.
The City has never communicated to the residents the desire to REDUCE the size of the
shopping mall into half the size at 600,000 sqft of retail space. (If I missed any
communication from the city to this effect, please point me to any such
communication.)
So, before any decision is made to reduce the retail space below 1.2 million sqft, please
justify the decision based on real data collected about Cupertino area, not some sad
story about a mall in the midwest where the population is declining.
The population of Cupertino is projected to increase by 1.5% annually, which amounts
to an increase of 30% by 2040. That was before the slew of pro -housing bills to force
rapid production of housing as a result of irresponsible rapid production of office
growth in some other cities, such as San Francisco. So, the population of Cupertino is
likely to increase by 50% by 2040. Should we reduce the size of our only shopping mall
in half at this time?
What's the consequences on the environment since residents in Cupertino and near
Cupertino will have to drive to other malls, such as Great Mall, Westridge, Stanford or
Livermore to shop. A shopping destination closer to Cupertino in fact help reduce trips
generated from shopping, entertainment and community gathering.
Besides at least 80% of the 1.2 million sqft of the former Vallco Shopping Mall was
occupied by viable shops. Please see the analysis in the enclosed blog for more details.
http://bettercupertino.blogspot.com/2016/04/truth-80-of-retail-space-in-vallco-was.html
Developer Sand Hill desperately wants people to believe that Vallco is a ghost mall.
However, the occupancy rate of Vallco is about 66% in Nov. 2014 even after years of
neglect. The sales income of Vallco has remained steady even through 2008 recession.
Vallco was not as "dead" as some people want us to believe. Let's take a look at the total
square footage that's in operation in November 2014 before Sand Hill took over Vallco.
You will be surprised to find out that at least 80% of the 1.2 million square feet of the
former Vallco was occupied with stable businesses and stable customer base. A total
of 994,377 square feet of space were occupied by active businesses in November
2014. More surprising, the retail space provided in Sand Hill's Vallco office park
initiative, disguised as a revitalization plan for Vallco, is only 63% of the occupied part
of Vallco. Cupertino citizens will in fact lose 369,377 square feet of retail space
previously occupied by stable businesses who were a part of the community for 20-30
years. The "ghost" Vallco Mall has 1.59 times MORE occupied retail space than Sand
Hill's Vallco.
From a 2008 appraisal report of Vallco, we found the square footage of various parts as
follows:
• 508,740 sq. ft. - Interior part owned by Son Son, not including AMC
• 80,500 sq. ft. - American Multi -Cinema (AMC)
• 176,962 sq. ft. - Macy's
• 202,360 sq. ft. - JC Penney Company
• 280,185 sq. ft. - Sears, including Bay Club.
Total square footage is 508,740 sq. ft. + AMC + Macy's + JCP + Sears = 1,247,000 sq. ft.
From a Silicon Valley Business Journal report, Sand Hill admitted that the interior part
of Vallco is about 50% tenanted, which refers to the number of tenants. In reality, many
larger spaces in Vallco are tenanted with very stable businesses, such as
• Ice Center
• Bowlmor
• Dynasty Restaurant
• Alexander's Steakhouse
• Victoria Secret
• Magic with 2 shops
• Tatami
• TGI Friday's Restaurant
• Benihana of Tokyo
• Fresh Choice
• New Things West with 2 shops
• Famous Footwear
There are also many businesses with smaller shops that have been at Vallco for many
years:
• Howard's Shoes
• American Nail
• Perfume Plus
• Capezio
• Toys Sports Cards
• SportAction
• Gymboree
• General Nutrition Center (GNC)
• Alteration Express
• Apollo & TZ
• Grain D'or
• Elite Menswear
• Site for Sore Eyes
• Maxi's Fine Jewelry
• Cinnabon
• Preztel Maker
Therefore, we would estimate that at least 50% of the square footage of the interior part
of 254,370 sq. ft. was tenanted in Nov. 2014. The total occupied part in Nov. 2014 was
50% tenanted of interior part (254,370 sq. ft.) + AMC + Macy's + JCP + Sears = 994,377 sq.
ft. = 80% of total square footage.
(994,377 / 1,247,000 sq. ft. = 79.7%)
How "empty" was Vallco? Only 20% empty. A total of 994,377 square feet of space was
occupied by stable businesses in November 2014.
EC 9212 Report for Cupertino Citizens' Sensible Growth Initiative states that the
occupancy rate of Vallco was 66% in Nov. 2014 when Sand Hill took over Vallco. Such
occupancy rate counts the number of stores occupied, not the amount of square footage
occupied. In Vallco, almost all of of the larger spaces are occupied. Therefore, it is no
surprise that at least 80% of the square footage of Vallco was occupied in Nov. 2014.
Sand Hill's Vallco office park project only offers 625,000 square feet of retail space,
which is only 63% of the occupied part of Vallco in November 2014 (994,377 square
feet). (625,000 s.f. / 994,377 = 62.8%)
Is Sand Hill's Vallco office park a project to revitalize a shopping mall at all, as their
fliers told the citizens?
And take a look at all the businesses that we have lost in the "ghost" Vallco Mall.