C. Population, Employment, And HousingLSA ASSOCIATES, INC. APPLE CAMPUS 2 PROJECT EIR
JUNE 2015 V. SETTING, IMPACTS AND MITIGATION MEASURES
C. POPULATION, EMPLOYMENT, AND HOUSING
C. POPULATION, EMPLOYMENT, AND HOUSING
This section describes population, employment, and housing statistics in the City of Cupertino and
Santa Clara County, and evaluates the potential impacts associated with population, housing, and
employment that could result from development of the proposed project.
1. Setting
The following section utilizes data from the U.S. Census Bureau, the California Department of
Finance, the Association of Bay Area Governments (ABAG),' and the City of Cupertino Housing
Element Update.
a. Population. Incorporated as a city in 1955, Cupertino grew from an agricultural community
into a suburban community during Silicon Valley's expansion. As shown in Table V.0-1, Cupertino's
population grew rapidly over a 30 -year period, increasing by approximately 177 percent from 1970 to
2000.3 As shown in Figure V.0-1, between 1970 and 1980, Cupertino experienced a significant
population increase due to the development of large housing tracts and the City's annexation of land
developed with residential uses from the City of San Jose. Between 1980 and 1990, population
growth was mostly a result of the City's annexation of large areas in Santa Clara County such as the
Rancho Rinconada area, east of the City, and the Inspiration Heights area, west of the City. Accord-
ing to ABAG projection data, a small and steady population increase is expected to occur through the
year 2030.
Table V.0-1: City of Cupertino Historical Population Growth
Year
Population
10 -Year Percent Increase
1970
18,216
—
1980
34,015
86.7%
1990
40,263
18.4%
2000
50,546
25.5%
2010
1 58,302
1 15.3%
Source: U.S. Census, 2011.
ABAG provides an estimate of the amount of growth that may occur within Cupertino and Santa
Clara County over the next 20 year period. As shown in Table V.0-2, between 2010 and 2020, the
City's population is estimated to increase by 2 percent, and between 2020 and 2030, the City's
population is expected to increase by 1.4 percent. Overall, ABAG estimates the City's population will
increase by 3.4 percent in 20 years .4 Average annual growth rates under such projections would be
approximately 0.17 percent.
1 Some ABAG data is for the City's "subregional study area," or its sphere of influence, and not its jurisdictional
boundaries. Subregional data are only used when no City -level data is available. When subregional data are used, they are
explicitly noted.
2 Bay Area Economics, 2010. City of Cupertino Housing Element Update, 2007-2014. April.
3 Association of Bay Area Governments, 2013. Bay Area Census. Website: www.bayareacensus.ca.gov/cities/
Cupertino.htm (accessed April 29).
4 Association of Bay Area Governments, 2009. Building Momentum, San Francisco Bay Area Population,
Household, and Job Forecasts.
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LSA ASSOCIATES, INC. APPLE CAMPUS 2 PROJECT EIR
JUNE 2015 V. SETTING, IMPACTS AND MITIGATION MEASURES
C. POPULATION, EMPLOYMENT, AND HOUSING
Figure V.0-1: City of Cupertino Population Growth Trend, 1970-2030
65,000
55,000
r0 45,000
7
CL
35,000
25,000
15,000
1970 1980 1990 2000 2010 2020 2030
Year
Source: U.S. Census, 2011; ABAG, 2009. Projections 2009.
The population of Santa Clara County is expected to increase at a faster rate than in the City. Between
2010 and 2020, the County's population is estimated to increase by approximately 13.2 percent, and
between 2020 and 2030, the County's population is expected to increase by 12 percent. Overall, the
County's population is expected to increase by 26.8 percent in 20 years.' Average annual growth rates
under such projections would be approximately 1.34 percent, or approximately seven times the
projected annual growth rate for Cupertino.
Table V.0-2: ABAG Population and Household Projections for Cupertino and Santa
Clara County 2010-20306,7
a For the purposes of this analysis, population is based on ABAG data. only. Discrepancies in current population data are
due to recent annexations of formerly unincorporated County land undertaken by the City.
Source: ABAG, 2009. Projections 2009.
5 Ibid.
6 California, State of, 2011a. Department of Finance. E-1 Population Estimates for Cities, Counties and the State
with Annual Percent ChangeJanuary 1, 2010 and 2011. May. According to California Department of Finance data., as of
January 2011, Cupertino's residential population is approximately 58,747, and Santa. Clara County's residential population
is 1,797,375.
7 California, State of, 2011b. Department of Finance. E-5 Population and Housing Estimates for Cities, Counties,
and the State, 2010-2011, with 2010 Benchmark. May. As of January 2011, there are 20,194 households in Cupertino and
605,274 households in Santa Clara County.
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2010
2020 2030
city
County
City
ount City
County
Population
55,200
1,822,000
56,300
2,063,100 57,100
2,310,800
Households
19,830
614,000
20,360
696,530 21,100
785,090
a For the purposes of this analysis, population is based on ABAG data. only. Discrepancies in current population data are
due to recent annexations of formerly unincorporated County land undertaken by the City.
Source: ABAG, 2009. Projections 2009.
5 Ibid.
6 California, State of, 2011a. Department of Finance. E-1 Population Estimates for Cities, Counties and the State
with Annual Percent ChangeJanuary 1, 2010 and 2011. May. According to California Department of Finance data., as of
January 2011, Cupertino's residential population is approximately 58,747, and Santa. Clara County's residential population
is 1,797,375.
7 California, State of, 2011b. Department of Finance. E-5 Population and Housing Estimates for Cities, Counties,
and the State, 2010-2011, with 2010 Benchmark. May. As of January 2011, there are 20,194 households in Cupertino and
605,274 households in Santa Clara County.
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LSA ASSOCIATES, INC. APPLE CAMPUS 2 PROJECT EIR
JUNE 2015 V. SETTING, IMPACTS AND MITIGATION MEASURES
C. POPULATION, EMPLOYMENT, AND HOUSING
b. Housing. The following section describes the housing characteristics of Cupertino and Santa
Clara County. There are no existing housing units or residential population on the project site.
(1) Households. The City's Housing Element Update uses the U.S. Census Bureau's
definition of a "household" as a person or group of persons living in a housing unit, as opposed to
persons living in group quarters, such as dormitories, convalescent homes, or prisons. According to
ABAG, in 2010, Cupertino had 19,830 households,' comprising approximately 3.2 percent of Santa
Clara County households. By 2030, ABAG estimates the number of Cupertino households will
increase by 6.4 percent to 2 1, 100 households and represent 2.7 percent of Santa Clara County house-
holds. In 2010, Santa Clara County had 614,000 households, and by 2030, ABAG estimates the
number of Santa Clara County households will increase by 27.9 percent to 785,090 households.
In 2000, the average household size in Cupertino was 2.75 and the average household size in Santa
Clara County was 2.92.9 According to the 2010 Census, the average household size in Cupertino was
2.87 persons per household, which was slightly less than the Santa Clara County average of 2.90
persons per household.lo
(2) Existing Housing Stock. According to the California Department of Finance, as of
January 2011, Cupertino's housing stock included a total of 21,041 units. Of the 21,041 units, 847
units are vacant, resulting in a vacancy rate of approximately 4 percent. According to the City's
Housing Element Update, Cupertino's 2008 housing stock was characterized by a majority of single-
family homes (approximately 71 percent of total), and a smaller percentage of multi -family homes
(approximately 28 percent of total), with few mobile homes (less than 1 percent of total)." According
to the City's demographics profile, the average sales price of an existing single-family home in
Cupertino is $1.06 million, and the average sales price for a condo/townhouse is $620,000.12
(3) Regional Housing Needs Allocation. As required by State law, the Housing Element of
the Cupertino General Plan discusses the City's "fair share allocation" of regional housing need by
income group as projected by ABAG. ABAG's determination of the local share of regional housing
takes into consideration the following factors: market demand for housing; employment opportuni-
ties; availability of suitable sites and public facilities; commuting patterns; type and tenure of housing
need; and conversion of affordable units to market -rate units. The Housing Element Update was
adopted by the City Council on April 9, 2010 and certified by the California Department of Housing
and Community Development (HCD) on June 24, 2010.
8 The 2010 U.S. Census data shows there are currently approximately 20,000 households in the City. This analysis
primarily relies on ABAG data for household numbers in order to retain source consistency for existing data and data.
projections.
9 Bay Area Economics, 2010, op. cit.
10 U.S. Census, 2010. 2010 Demographic Profile Data (DP -1), Profile of General Population and Housing
Characteristics. Website: factfinder2.census.gov (accessed January 27, 2012).
11 Single-family homes include both attached and detached single-family homes.
12 Cupertino, City of, 2011. City of Cupertino Demographics. Website: www. Cupertino.org/index.aspx?page=113
(accessed October 3).
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LSA ASSOCIATES, INC. APPLE CAMPUS 2 PROJECT EIR
JUNE 2015 V. SETTING, IMPACTS AND MITIGATION MEASURES
C. POPULATION, EMPLOYMENT, AND HOUSING
In May 2008, ABAG adopted the Final Regional Housing Needs Allocation (RHNA) for the period
of 2007 to 2014, which allocates housing needs for different income levels among the jurisdictions
within the nine -County Bay Area.13 Cities and counties are required to account for the RHNA in the
housing elements of their General Plans. Under State law, all housing elements must be reviewed by
the HCD; housing elements are certified if they comply with State law and meet certain planning
objectives. According to ABAG, some public agencies and private foundations will not provide
funding for housing and redevelopment projects to jurisdictions that do not have a certified housing
element. In addition, jurisdictions without certified housing elements have faced lawsuits from
housing advocacy organizations. While HCD requires cities and counties to show through their
housing elements that they can accommodate the projected housing need, the presence of adequate
amounts of land designated for residential uses does not necessarily result in the actual construction
of adequate housing supplies.
Table V.0-3: City of Cupertino and Santa Clara County Regional Housing Needs
Allocation, 2007-2014
Source: ABAG, 2008. San Francisco Bay Area Housing Needs Plan 2007-2014.
Table V.0-3 shows the RHNA for Cupertino and Santa Clara County for the period of 2007-2014.
Between 2007 and 2009, 547 units have been constructed or approved in the City .14 The City
exceeded its RHNA for above -moderate -income units, but has a remaining total allocation of 717
very low-, low-, and moderate -income units .15
Of the remaining 717 units, 319 are very low-income
units, 213 are low-income units, and 185 are moderate -income units. In order to meet the allocation
during the remaining 2 years of the current planning period, the City proposed to adopt policies and
programs to allow for residential development at appropriate densities on sites with no infrastructure
constraints (see Policies I and 2 under the Housing Element Update in the "Regulatory Framework"
subsection below). The City's Housing Element Update identifies several sites located within the City
that are zoned for housing and that would accommodate Cupertino's fair share of housing obligations
per the RHNA .16 In addition, other potential housing sites in the City (along Stevens Creek Boulevard
13 Association of Bay Area Governments, 2008. San Francisco Bay Area Housing Needs Plan 2007-2014. June.
14 The 547 units include 22 very low-income units, 16 low-income units, 58 moderate -income units, and 451 above -
moderate income units.
15 Bay Area Economics, 2010, op. cit.
16 Cupertino, City of, 2010. Housing Element Technical Report Update 2007-2014. April.
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Housing
Units Allocation
Cupertino
Percent
(%)
Santa Clara
Count
Percent
(%)
Very Low Income
341
29.1
13,878
23.0
Low Income
229
19.6
9,567
16.0
Moderate Income
243
20.8
11,007
18.0
Above Moderate Income
357
30.525,886
43.0
Total
1,170
100.0
60,338
100.0
Source: ABAG, 2008. San Francisco Bay Area Housing Needs Plan 2007-2014.
Table V.0-3 shows the RHNA for Cupertino and Santa Clara County for the period of 2007-2014.
Between 2007 and 2009, 547 units have been constructed or approved in the City .14 The City
exceeded its RHNA for above -moderate -income units, but has a remaining total allocation of 717
very low-, low-, and moderate -income units .15
Of the remaining 717 units, 319 are very low-income
units, 213 are low-income units, and 185 are moderate -income units. In order to meet the allocation
during the remaining 2 years of the current planning period, the City proposed to adopt policies and
programs to allow for residential development at appropriate densities on sites with no infrastructure
constraints (see Policies I and 2 under the Housing Element Update in the "Regulatory Framework"
subsection below). The City's Housing Element Update identifies several sites located within the City
that are zoned for housing and that would accommodate Cupertino's fair share of housing obligations
per the RHNA .16 In addition, other potential housing sites in the City (along Stevens Creek Boulevard
13 Association of Bay Area Governments, 2008. San Francisco Bay Area Housing Needs Plan 2007-2014. June.
14 The 547 units include 22 very low-income units, 16 low-income units, 58 moderate -income units, and 451 above -
moderate income units.
15 Bay Area Economics, 2010, op. cit.
16 Cupertino, City of, 2010. Housing Element Technical Report Update 2007-2014. April.
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LSA ASSOCIATES, INC. APPLE CAMPUS 2 PROJECT EIR
JUNE 2015 V. SETTING, IMPACTS AND MITIGATION MEASURES
C. POPULATION, EMPLOYMENT, AND HOUSING
and De Anza Boulevard) that are not specifically identified in the Housing Element Update are zoned
for mixed uses, including residential uses .17
C. Employment. Cupertino contains and is in close proximity to regional employment centers and
major transportation thoroughfares. Two types of employment data are described below: 1) total jobs
within the community; and 2) employed residents: the number of residents of working age who
actively participate in the civilian labor force. A comparison of this data can provide an indication of
commute patterns in a community (i.e., whether significant out -commuting or in -commuting occurs).
The civilian labor force includes: 1) those who are employed (except in the armed forces); and 2)
those who are unemployed but actively seeking employment. Those who have never held a job, who
have stopped looking for work, or who have been unemployed for a long period of time are not
considered to be in the labor force. According to the California Employment Development Depart-
ment, as of September 2011, an estimated 24,500 persons in Cupertino were in the labor force.18
(1) Total Jobs. According to ABAG's subregional study data, in 2010 Cupertino had 32,010
jobs, comprising approximately 3.5 percent of all jobs in Santa Clara County. Jobs in Cupertino's
subregional study area are expected to increase by 16 percent between 2015 and 2035, from 32,790 to
37,890 jobs (see Table V.0-4).
Total jobs in Santa Clara County are projected to increase by 44 percent between 2015 and 2035,
from 981,230 jobs to 1,412,620 jobs.19 Jobs in Cupertino are expected to remain at approximately 3
percent of the County total and the City is expected to contribute to 1.2 percent of the total increase in
County jobs through the year 2035.
(2) Employed Residents. ABAG defines employed residents as employed people who "live
in the identified community or county but do not necessarily work there." Unemployed residents are
not counted as employed residents, even if they are actively seeing employment. According to
ABAG, the City's subregional study area contained 23,950 employed residents in 2010. Employed
residents in Cupertino's subregional study area are expected to increase by 12 percent between 2015
and 2035, from 24,440 to 27,390 employed residents (see Table V.0-4).
According to ABAG, the County's subregional study area contained 815,800 employed residents in
2010. Residents employed in Cupertino represent approximately 3 percent of the County's total.
Employed residents in Santa Clara County's subregional study area are expected to increase by 39
percent between 2015 and 2035, from 899,900 employed residents to 1,252,500 employed residents.
The City is projected to contribute less than I percent of the total increase in County -employed
residents through the year 2035.
17 Ghosh, Piu, 2012. Associate Planner, City of Cupertino Community Development Department. Personal
communication with LSA Associates, Inc. January 24.
18 California, State of, 2011. Employment Development Department. Monthly Labor Force Data for Cities and
Census Designated Places, September 2011 -Preliminary. Website: www.labormarketinfo.edd.ca.gov (accessed November 9).
19 Association of Bay Area Governments, 2009, op. cit.
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LSA ASSOCIATES, INC. APPLE CAMPUS 2 PROJECT EIR
JUNE 2015 V. SETTING, IMPACTS AND MITIGATION MEASURES
C. POPULATION, EMPLOYMENT, AND HOUSING
d. Jobs -to -Housing Balance. The jobs -to -housing -units ratio is used to evaluate whether a
community has an adequate number of jobs available to provide employment for residents within the
community seeking employment. The jobs -to -housing -units ratio can be useful in understanding the
interconnections among housing affordability, traffic flows, congestion, and air quality within a city
and a larger region. However, the jobs -to -housing -units ratio is best analyzed at the sub -regional or
regional level due to the tendency of people to commute to jobs outside of their community.
(1) Methodology. Typically, the term "jobs -to -housing balance" is used to refer to a
relationship between jobs and housing units within a community. A jobs -to -housing -units ratio of 1.5
takes into account residents who do not participate in the labor force (e.g., those who are retired,
disabled, or students). A 1.5 jobs -to -housing -units ratio indicates a community has an adequate
number of jobs to meet the demand for employment by its residents, and therefore is in balance.
A more helpful indicator of balance, however, is the relationship between the number of jobs provided
to the number of employed residents. An ideal jobs -to -employed -residents ratio is 1.0, which indicates
that there is a job in the community for every employable resident.
A jobs -to -employed -residents ratio that is greater than 1.0 indicates that the community provides
more jobs than it has residents with jobs. In this situation the community is likely to experience traffic
congestion associated with people coming to jobs from outside the area, as well as intensified
pressure for additional residential development to house the labor force. Conversely, a jobs -to -
employed -residents ratio of less than 1.0 indicates that a community has fewer jobs than employable
residents, indicating many residents would need to commute outside of the community (i.e., out -
commute) for employment. The resulting commuting patterns can lead to traffic congestion and
adverse effects on both local and regional air quality.
However, the jobs -to -housing -units ratio does not account for regional in- or out -commuting due to
job/labor mismatches or housing affordability. Even if a community has a numerical balance between
jobs and housing/employed residents, sizeable levels of in- and out -commuting are possible and even
likely, especially where employment opportunities do not match local skills and/or the educational
characteristics of the local labor force. In such instances, regional commuting tends to occur. For
example, a numerically balanced community may have high housing costs and low-wage jobs, thus
encouraging its residents to out -commute to their high wage jobs elsewhere, and its workers to in -
commute from outside the community where housing costs are affordable in relation to their low
wage incomes. This condition is often referred to as a jobs -to -housing mismatch. A jobs -to -housing
match occurs when the types of jobs provided in a community "match" the income needs of the
employed workers within the community.
(2) Jobs -to -Employed Residents in Cupertino and Santa Clara County. According to
ABAG, Cupertino's jobs -to -employed -residents ratios in 2005 and 2010 of 1.47 and 1.34, respec-
tively, indicate that the community had moved slightly toward a balance over the 5 -year period. The
reduction in employees on the project site (as Hewlett-Packard has consolidated operations at its Palo
Alto campus and Apple has transitioned employees from Ridgeview Court to other sites in anticipa-
tion of campus redevelopment activities) may have contributed to the downward -trending jobs -to -
employed -residents ratios. By 2035, ABAG projects that Cupertino's jobs -to -employed -residents
ratio will slightly increase to 1.3 8, indicating that in the future, the City's job growth is expected to
outpace the City's growth in employed residents (see Table V.0-4). In Santa Clara County, the jobs -
to -employed -residents ratio will remain relatively constant through 2035 at 1. 13, with slightly more
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LSA ASSOCIATES, INC. APPLE CAMPUS 2 PROJECT EIR
JUNE 2015 V. SETTING, IMPACTS AND MITIGATION MEASURES
C. POPULATION, EMPLOYMENT, AND HOUSING
jobs than workers Countywide. Table V.0-4 provides housing and employment data for Cupertino
and Santa Clara County. This table also provides data indicating projected jobs -to -housing units and
jobs -to -employed -residents ratios.
Table V.0-4: Housing and Employment Data — Cupertino and Santa Clara County'
a ABAG data are from the subregional study area.
Source: ABAG, 2009. Projections 2009.
e. Regulatory Framework. The following describes the regulatory framework associated with
population, employment and housing.
(1) The Office and Industrial Mitigation Program. This City program, which is part of the
City's Housing Mitigation Program, requires payment of fees from project developers to support the
development of affordable housing for families and individuals who work in Cupertino but live
elsewhere .20 The mitigation fee is determined by the City Council and deposited into the Affordable
Housing Fund. The Affordable Housing Fund provides financial assistance to affordable housing
developments in Cupertino. The options for uses of the fee include, but are not limited to, the follow-
ing: development of new affordable units; conversion of existing market rate units to affordable units;
down payment assistance programs; and second mortgage programs.
(2) Jobs/Housing Program. This City program requires the sponsors of major new office/
industrial development to build housing as part of new development projects. Under this program, the
City evaluates the impact of any application that would produce additional jobs in Cupertino and
identifies housing that would need to be built to accommodate increased demand and maintain the
desired jobs/housing balance.
(3) City of Cupertino General Plan. The City's General Plan also contains policies related
to population, housing, and employment that are applicable to the proposed project. Applicable
population, housing, and employment policies from the General Plan Housing Element Update and
Land Use/Community Design Element are listed below.
20 The Office and Industrial Mitigation Program was adopted by the City Council in 2007. The City adopted a
Housing Mitigation fee of $2.38 per square foot for office and research development projects in Planned Industrial, P(MP)
zoned areas, which includes the project site. All fees are adjusted annually based on the Consumer Price Index.
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2005
2015
2025
2035
city
County
city
County
city
County
city
County
Total Jobs
31,260
872,860
32,790
981,230
34,520
1,177,520
37,890
1,412,620
Employed
21,310
734,000
24,440
899,900
25,840
1,074,500
27,390
1,252,500
Residents
Housing Units
19,530
595,700
20,350
653,810
1 21,040
739,820
21,800
827,330
Jobs -to -Housing -
Units Ratio
1.60
1.47
1.61
1.50
1.64
1.59
1.74
1.71
Ideal is LS
Jobs -to -Employed -
Residents Ratio
1.47
1.19
1.34
1.09
1.34
1.10
1.38
1.13
(Ideal is 1.0)
a ABAG data are from the subregional study area.
Source: ABAG, 2009. Projections 2009.
e. Regulatory Framework. The following describes the regulatory framework associated with
population, employment and housing.
(1) The Office and Industrial Mitigation Program. This City program, which is part of the
City's Housing Mitigation Program, requires payment of fees from project developers to support the
development of affordable housing for families and individuals who work in Cupertino but live
elsewhere .20 The mitigation fee is determined by the City Council and deposited into the Affordable
Housing Fund. The Affordable Housing Fund provides financial assistance to affordable housing
developments in Cupertino. The options for uses of the fee include, but are not limited to, the follow-
ing: development of new affordable units; conversion of existing market rate units to affordable units;
down payment assistance programs; and second mortgage programs.
(2) Jobs/Housing Program. This City program requires the sponsors of major new office/
industrial development to build housing as part of new development projects. Under this program, the
City evaluates the impact of any application that would produce additional jobs in Cupertino and
identifies housing that would need to be built to accommodate increased demand and maintain the
desired jobs/housing balance.
(3) City of Cupertino General Plan. The City's General Plan also contains policies related
to population, housing, and employment that are applicable to the proposed project. Applicable
population, housing, and employment policies from the General Plan Housing Element Update and
Land Use/Community Design Element are listed below.
20 The Office and Industrial Mitigation Program was adopted by the City Council in 2007. The City adopted a
Housing Mitigation fee of $2.38 per square foot for office and research development projects in Planned Industrial, P(MP)
zoned areas, which includes the project site. All fees are adjusted annually based on the Consumer Price Index.
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LSA ASSOCIATES, INC. APPLE CAMPUS 2 PROJECT EIR
JUNE 2015 V. SETTING, IMPACTS AND MITIGATION MEASURES
C. POPULATION, EMPLOYMENT, AND HOUSING
Housing Element Update
Policy 1: Sufficiently Residentially Zoned Land for New Construction Need
Designate sufficient residentially -zoned land at appropriate densities to provide adequate sites that will meet
ABAG's estimate of Cupertino's Regional Housing Needs Allocation (RHNA) of 1,170 units for 2007-2014.
Policy 2: Housing Mitigation Program
The Housing Mitigation Program is based on a nexus study prepared by the City that demonstrated that all new
developments, including market -rate residential developments, create a need for affordable housing.
Program 4: Housing Mitigation Program — Office and Industrial Mitigation
The City will continue to implement the "Office and Industrial Mitigation" fee program. This program requires
that developers of office, commercial, and industrial space pay a fee, which will then be used to support
affordable housing for families who work in Cupertino but live elsewhere. These fees are collected and
deposited in the City's Affordable Housing Fund.
Program 10: Jobs/Housing Balance Program
Require major new office/industrial development to build housing as part of new development projects. As part
of the development review process, the City will evaluate the impact of any application that will produce
additional jobs in the community. The purpose of the evaluation is to describe the impacts of the new jobs on
the City's housing stock, especially in relation to the jobs/housing ratio in the City.
Program 15: Residential and Mixed Use Opportunities in or Near Employment Centers
The City will encourage mixed use development and the use of shared parking facilities in or near employment
centers. In addition to the development opportunities available through the "Heart of the City" Specific Plan, the
City will evaluate the possibility of allowing residential development above existing parking areas except where
mixed use is herein excluded. In specific, these areas would be near or adjacent to employment centers and
could provide additional opportunities for housing.
Land Use/Community Design Element
Policy 2-19: Jobs/Housing Balance
Strive for a more balanced ratio of jobs and housing units.
Policy 2-44: Maintaining Cohesive Commercial Centers and Office Parks
Cohesive commercial centers and office parks are necessary to maintain a healthy sales tax base for the city and
to retain opportunities for existing businesses to expand in response to changing business trends. Cupertino's
major retail commercial centers are located at Vallco Fashion Park, The Marketplace and Portal Plaza centers,
Cupertino Village, the Oaks and the Crossroads Commercial District; the office parks are located at Vallco
(North of Highway 280), North De Anza Boulevard and Bubb Road.
2. Impacts and Mitigation Measures
This section includes an analysis of impacts related to population, housing, and employment that
could result from implementation of the proposed project. The section begins with the criteria of
significance, which establish the thresholds to determine whether an impact is significant. The latter
part of this section presents the impacts associated with the proposed project and identifies mitigation
measures, as appropriate.
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C. POPULATION, EMPLOYMENT, AND HOUSING
a. Criteria of Significance. The proposed project would have a significant impact on population,
housing, and employment if it would:
• Induce substantial population growth in an area, either directly (for example, by proposing
new homes and businesses) or indirectly (for example, through extension of roads or other
infrastructure);
• Displace substantial numbers of existing housing units, necessitating the construction of
replacement housing elsewhere; or
• Displace substantial numbers of people, necessitating the construction of replacement
housing elsewhere.
b. Less -Than -Significant Impacts. The following discussion examines potential less -than -
significant impacts of the proposed project.
(1) Directly Induce Substantial Population Growth. While the project site has a total
capacity of 9,800 employees and has historically operated near this capacity, as of August 2011
(when the Notice of Preparation for this EIR was filed) approximately 4,844 Apple and Hewlett-
Packard employees work on the project site. Historically, the project site accommodated a significant
portion of Hewlett-Packard employees, with up to approximately 5,000 employees during the early
2000s. Because Hewlett-Packard had been consolidating its operations at its Palo Alto campus, the
number of Hewlett-Packard employees on the project site in August 2011 had substantially decreased
from its peak. Similarly, Apple's Ridgeview Court campus, located in the southern portion of the
project site, has capacity to accommodate 4,800 employees. In anticipation of campus redevelopment,
Apple is in the process of transitioning employees from Ridgeview Court to other sites in Sunnyvale
and Mountain View. Due to the evolving business needs of Apple and Hewlett-Packard and the need
for employees to frequently work off-site, the number of employees on the project site fluctuates over
time. The August 2011 employee estimate provides a conservative estimate of the number of
employees on the project site.
The proposed project would replace 2,657,000 square feet of building space with 3,420,000 square
feet of office, research, and development uses; 245,000 square feet of auditorium, fitness center, and
Valet Parking Reception uses; 92,000 square feet of utility plants; and parking and ancillary buildings
(such as security receptions and landscape maintenance buildings). The project would result in a net
increase of approximately 9,356 employees over the number of current employees on the site (and an
increase of approximately 4,400 employees over the total capacity of the project site). The employee
growth associated with the project would occur incrementally, as Apple employees at off-site
locations are transferred to the site and Apple's demand for new employees grows.
The proposed project would not include any new residential units, and therefore would not directly
generate housing -related population growth. However, theoretically, population growth could be
induced by the development of land uses that generate new employment since developers generally
see the opportunity to provide housing for new employees. The location of approximately 9,356 new
employees on the site could cause people to move to Cupertino or surrounding communities, which
could generate additional housing demand in the region. To estimate how many employees would
likely move to Cupertino as a result of the project, the following analysis assumes that new employ-
ees would have the same geographic distribution (in terms of primary residence) as existing Apple
employees currently on the project site (see Figure V.0-2 and Table V.0-5).
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LSA ASSOCIATES, INC. APPLE CAMPUS 2 PROJECT EIR
JUNE 2015 V. SETTING, IMPACTS AND MITIGATION MEASURES
C. POPULATION, EMPLOYMENT, AND HOUSING
Figure V.0-2: Residential Location of Current Employees on the Project Site
Source: LSA Associates, Inc., 2011.
As of 2011, of the 4,844 employees on the project site, approximately 10 percent live in Cupertino,
while a large percentage live in San Jose (24 percent) and San Francisco (13 percent) 2J For the
analysis shown in Table V.0-5, the following assumptions were made: 1) new employees would have
the same geographic distribution (in terms of primary residence) as existing employees; 2) every new
project -generated employee would move to the area from elsewhere; 3) none of the new project -
generated employees would be existing Cupertino residents; and 4) none of the new project -generated
employees would share households. Under these assumptions, the analysis concludes that approxi-
mately 936 employees would be residents of Cupertino as a result of project implementation.
The "Projected Project -Related Housing Demand" numbers in Table V.0-5 were calculated by
multiplying, for each city, the "Residential Location of Current Apple Employees (percent of total)"
by the total number of net new employees that would be generated by the proposed project (9,356).
The "Projected Housing Demand as Percent of Household Growth" numbers were calculated by
dividing, for each city, the "Projected Project -Related Housing Demand" by "Projected Household
21 For the purpose of this analysis, it is assumed that Hewlett-Packard employees in the area have approximately the
same geographic distribution of Apple employees.
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LSA ASSOCIATES, INC. APPLE CAMPUS 2 PROJECT EIR
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C. POPULATION, EMPLOYMENT, AND HOUSING
Growth (2015-2020)." The resulting numbers represent a cautious estimate of project -related housing
demand generated by full buildout of the project. Prior to project buildout and full occupancy of the
project site, project -related housing demand would be lower than shown in Table V.0-5 (both in total
and as a percentage of projected household growth).
Table V.0-5: Projected Housing Demand by City Based on Residential Location of
Current Apple Employees
Ci
Residential
Location of
Current Apple
Employees
(percent of total) a
Projected
Household
Growth
(2015-2020)b
Projected
Project -Related
Housing Demand
Projected
Housing Demand
as Percent of
Household
Growth
Cupertino
10%
330
936
284%
San Jose
24%
26,080
2,245
9%
San Francisco
13%
13,580
1,216
9%
Sunnyvale
8%
2,590
748
29%
Santa Clara
6%
3,430
561
16%
Mountain View
4%
2,000
374
19%
Los Gatos
3%
130
281
216%
Campbell
3%
770
281
36%
Palo Alto
2%
1,470
187
13%
Fremont
2%
3,130
187
6%
Los Altos
2%
210
187
89%
Saratoga
2%
30
187
624%
Top 12 Cities Total
79%
53,750
7,391
All Other California Cities
19%
—
1,778
All Other Locations
Outside of California
2%
—
187
—
Total
1000/0
—
9,356
--
Employee data provided by Apple. Percentages have been rounded up for this analysis.
The year 2020 was chosen because it would be the approximate time of full occupancy of the proposed project.
Projections obtained from: ABAG, 2009. Building Momentum: San Francisco Bay Area Population, Household, and
Job Forecast.
The housing production in each community would rely in part on local zoning and community goals, which would be
unlikely to undergo substantial change as a result of the proposed project. Therefore, the large growth rates associated
with the project, as shown above, are unlikely to occur.
Source: LSA Associates, Inc., 2011.
Because this analysis is based on the conservative assumptions described in the preceding paragraph,
it is likely that at least a portion of "new" Cupertino -dwelling employees would already be Cupertino
residents and/or would share households; therefore, it is important to note that this analysis likely
over-estimates the number of new residents in Cupertino and other cities in the region that would be
associated with the proposed project. Since no housing is proposed as part of the proposed project, it
is expected that over time, future Apple employees would move into existing housing units in the
City that have been sold, or new homes that have been built. The potential for new housing develop-
ments in Cupertino and neighboring communities is low due to the lack of available land that is
appropriate for substantial residential development. As a result, vacancies of existing housing units in
this area would be absorbed quickly. The presence of new employees may result in additional housing
demand in the City, as shown in Table V.0-5 and described in the following paragraphs. However,
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LSA ASSOCIATES, INC. APPLE CAMPUS 2 PROJECT EIR
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C. POPULATION, EMPLOYMENT, AND HOUSING
this increase in demand would occur over many years (as the project is developed in phases and
employees move to the area from elsewhere) and associated effects would not be acute. Housing
supply (in the United States in general, and in the Bay Area in particular) is generally inelastic,
meaning that it typically takes a long time for housing supply to meet growing demand, due to the
length of time needed to secure financing, acquire land, secure the necessary permits, and complete
construction. In addition, any new housing development in Cupertino would be subject to independ-
ent environmental analysis, which also contributes to the inelasticity of the housing supply, and
would ensure that the physical effects of new housing development would be identified and mitigated,
where necessary.
According to this analysis (Table V.0-5), induced housing demand in Cupertino associated with the
project would be 284 percent of the household growth expected by ABAG between 2015 and 2020.
Expected housing demand would also substantially exceed expected household growth over the 5 -
year period in the smaller communities of Los Gatos and Saratoga. It should be noted that the large
growth rates associated with the project in these cities would largely be a function of the relatively
small size of these places, and low expected growth rates under no -project conditions. However, in
jurisdictions other than these, the housing demand that could be induced by the proposed project
would not exceed ABAG projections for household growth.
While the indirect population growth associated with project -related housing demand may exceed
ABAG projections in Cupertino, Los Gatos, and Saratoga, based on the assumption that the geo-
graphic distribution of future Apple employees would remain the same as existing employees, it
should be noted that each of these communities has specific housing production goals, which would
not likely be changed as a result of the proposed project. Since no housing is proposed as part of the
proposed project, it is expected that over time (approximately 10 to 15 years), if future Apple
employees move into these communities, they would likely move into existing homes that have been
sold or new homes that have been built. Additionally, it is more likely that new future Apple employ-
ees would move to locations in the region where housing is available and affordable.
Overall indirect population growth associated with the project would not be considered significant
when evaluated on a regional or sub -regional level. The total population growth associated with the
project (9,356) would be a relatively small percentage (approximately 7.9 percent) of the population
growth expected in Santa Clara County between 2015 and 2020 (117,800) �� Because much of the
growth induced by the project would occur outside the County, the growth associated with the project
would be an even smaller percentage of region -wide growth, and would be considered less than
significant. The total population growth associated with the project would comprise 2.7 percent of the
population growth expected in the Bay Area region between 2015 and 2020 (340,500) 23
In addition, the project site — which is designated in the General Plan as an employment center — is an
appropriate location for employment growth. The City's General Plan policies also support retaining
and intensifying employment at this location (Policies 2-1, 2-13, 2-35 and 2-44, and Strategy 3 of
Policy 2-20). For these reasons, employment growth at the site would be considered desirable and less
than significant.
22 Association of Bay Area Governments, 2009, op. cit.
23 Ibid.
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LSA ASSOCIATES, INC. APPLE CAMPUS 2 PROJECT EIR
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C. POPULATION, EMPLOYMENT, AND HOUSING
(2) Displacement of Housing. There are no existing housing units on the project site, and as
a result, development of the proposed project would not result in the displacement of housing, and
therefore, would not necessitate the construction of replacement housing elsewhere. Table V.0-6
shows that the required RHNA housing units expected to be constructed in the near-term would more
than satisfy the demand for housing associated with the proposed project. As discussed in the Setting
section, RHNA units comprise housing units affordable to a range of households, from very low-
income households to above moderate -income households.
Table V.0-6: Project Housing Demand Compared To RHNA
Ci
ABAG RHNA
(2007-2014) a
Projected Demand
from Proposed Project
Proposed Project
Housing Demand as
Percent of Required
RHNA Development
Cupertino
1,170
936
80.0%
San Jose
34,721
2,245
6.5%
San Francisco
31,193
1,216
3.9%
Sunnyvale
4,426
748
16.9%
Santa Clara
5,873
561
9.6%
Mountain View
2,599
374
14.4%
Los Gatos
562
281
50.0%
Campbell
892
281
31.5%
Palo Alto
2,860
187
6.5%
Fremont
4,380
187
4.3%
Los Altos
317
187
59.0 %
Saratoga
292
187
64.0%
a Association of Bay Area Governments, 2008. San Francisco Bay Area Housing Needs Plan 2007-2014. June.
ABAG RHNA = Association of Bay Area Governments Regional Housing Needs Allocation.
Source: LSA Associates, Inc., 2011.
As described in Chapter IV, Planning Policy, the project would involve the development of office and
research and development uses on the 7.78 -acre portion of the site zoned Planned Development
(Planned Industrial, Residential) (P(MP, Res)). This zone allows for the planned development of light
industrial and residential uses .24 The development of non-residential uses on land zoned — at least in
part — for residential uses could slightly constrain the City's future housing supply. Although the
proposed project would reduce the amount of land in the City available for the development of
housing, this reduction would not result in significant adverse environmental effects, as the project
would not constrain the supply of land available for the development of residential uses such that the
City's future supply of housing or the availability of potential housing sites to meet the City's fair
share of housing obligations would be substantially compromised. Additionally, although the City
Council adopted a lower Housing Mitigation fee (Office and Industrial Mitigation Program fee) rate
24 Prior to 2005, this portion of the site was zoned Planned Industrial (P(MP)). In November 2005, the area was
approved for a townhouse development consisting of 130 townhomes and a 1.1 -acre public park. At that time, the area was
rezoned as Planned Residential (P(Res)) and Public Park/Recreation (PR). Apple purchased the area in 2006 and in 2009
Apple applied for a rezoning of the P(Res) zoned parcels to allow for the development of planned industrial uses in addition
to residential uses. The City granted the rezoning to P(MP, Res). As part of the Apple Campus 2 Project, Apple does not
propose to remove the residential zoning designation on the site.
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LSA ASSOCIATES, INC. APPLE CAMPUS 2 PROJECT EIR
JUNE 2015 V. SETTING, IMPACTS AND MITIGATION MEASURES
C. POPULATION, EMPLOYMENT, AND HOUSING
for the North Vallco Area at 50 percent of the rate for commercial, office, and hotel development in
the rest of the City, Apple would pay 100 percent of the fee. This amounts to twice the amount that a
project in the North Vallco Area would be required to pay as Housing Mitigation fees (Program 4
under Policy 2 of the City's Housing Element Update). Through this voluntary payment, Apple would
pay approximately $5 million in Housing Mitigation fees that would fund the development of
affordable housing in the City, and would further reduce the less -than -significant impact on housing
supplies associated with the project.
(3) Displacement of People. As previously described, there are no existing housing units on
the project site and the project site does not contain residential units. Therefore, the proposed project
would not displace residents, necessitating the construction of replacement housing elsewhere.
(4) Jobs/Housing/Employed Residents Ratios. The following discussion of the jobs -to -
housing -unit and jobs -to -employed -residents ratios that would result from the proposed project is
provided for informational purposes; changes in the ratios on the local or County levels are not
expected to result in substantial physical environmental impacts.
Jobs -to -Housing Units Ratio. The proposed project would result in the creation of 9,356 net
new jobs in Cupertino, based on existing employment conditions on the project site. (As noted above,
while the project site has a total capacity of 9,800 employees and has historically operated near this
capacity, as of August 2011 approximately 4,844 Apple and Hewlett-Packard employees work on the
project site.) Table V.0-7 provides 2010 (existing) and 2035 (projected) housing and employment
data for the City and Santa Clara County, with and without the proposed project. As described above,
a small percentage of Apple employees may move to Cupertino after development of the proposed
project (and could increase demand for housing). The jobs/housing balance could improve if future
Apple employees already live in Cupertino but do not currently work in the City. Table V.0-7 was
thus developed to illustrate the "worst case" effects of the proposed project on the City's jobs/housing
balance.
Table V.0-7: Housing and Employment Data —Without and With Project'
a Data are from the subregional study area. The ABAG demographic data used here represent the best available
baseline/projections data.
b Under existing conditions, employment on the project site could expand to 9,500 employees.
Source: ABAG, 2009. Projections 2009.
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2010
2010
2035
2035
(withoutproject)
(with pro'ect)e
(withoutproject)
(with roject)
City
County
City
County
city
County
City
Count
Total Jobs
32,010
906,270
41,366
915,626
37,890
1,412,620
47,246
1,421,976
Employed Residents
23,950
815,800
23,950
815,800
27,390
1,252,500
27,390
1,252,500
Housing Units
20,120
614,000
20,120
614,000
21,800
827,330
21,800
827,330
Jobs -to -Housing -
Units Ratio
1.59
1.48
2.06
1.49
1.74
1.71
2.17
1.72
(Ideal is E5)
Jobs -to -E mployed-
Residents Ratio
1.34
1.11
1.73
1.12
1.38
1.13
1.72
1.14
Ideal is 1.0
a Data are from the subregional study area. The ABAG demographic data used here represent the best available
baseline/projections data.
b Under existing conditions, employment on the project site could expand to 9,500 employees.
Source: ABAG, 2009. Projections 2009.
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C. POPULATION, EMPLOYMENT, AND HOUSING
As previously stated, 1.5 is the most desirable jobs -to -housing units ratio. As shown in Table V.0-7,
the addition of 9,356 jobs with no net change in housing units could cause the City's estimated 2010
jobs -to -housing -units ratio to increase from 1.59 to 2.06, and would slightly increase the County's
ratio from 1.48 to 1.49. This slight increase in the jobs -to -housing units ratio would not be considered
a significant impact on a regional level. On the City level, in both the short-term and long-term, the
addition of 9,356 jobs on the project site would make the ratio marginally more unbalanced. In other
words, the proposed project could contribute to an increase in the City's jobs -to -housing units ratio.
However, as noted above, Apple has agreed to pay 100 percent, or twice the base fee, of the City's
Housing Mitigation fee, as required in the North Vallco Area. This fee would ensure the future
development of additional affordable housing in Cupertino and would moderate the local jobs/
housing unit imbalance to which the project would make a less -than -significant contribution.
In addition, the jobs/housing balance in Cupertino is addressed in the City's General Plan (see Policy
2-19). In conjunction with the City's Housing Element Update, the City identified housing develop-
ments and sites that would ultimately accommodate a total of 1,170 residential units, in conformance
with the City's RHNA allocation 25 Furthermore, the City has the ability to construct additional resi-
dential units in conformance with the Housing Element Update to balance its jobs -to -housing units
ratio. Thus project -related employment growth (and indirect population growth) would not conflict
with the General Plan.
On the County level, the proposed project would incrementally affect the jobs -to -housing units ratio
in the short- and long-term, but the effect would be minor and would not substantially change patterns
of commuting or housing demand.
Jobs -to -Employed Residents Ratio. As noted above, 1.0 is the most desirable jobs -to -
employed residents ratio. Assuming no future Apple employees move to Cupertino, the jobs generated
by the proposed project would increase the City's 2010 estimated jobs -to -employed residents ratios
from 1.34 to 1.73 and would increase the City's 2035 ratio from 1.38 to 1.72. The proposed project
would cause the City to have a more unbalanced jobs -to -employed residents ratio in the short- and
long-term, indicating that with the addition of the jobs created by the proposed project, the City would
provide more jobs than it has employed residents.
However, the increase in jobs from the proposed project would only incrementally increase the
County's projected ratios (by less than I percent) in the short- and long-term, indicating that on a
regional level, the proposed project would not substantially adversely affect the jobs -to -employed
residents ratio.
As discussed above, in conjunction with the City's Housing Element Update, the City identified
housing developments and sites that would ultimately accommodate a total of 1,170 residential units,
in conformance with the City's RHNA allocation. Thus project -related employment growth (and
indirect population growth) would not conflict with the General Plan, and Apple's payment of twice
25 179 of these units would be in the North Vallco Area and would likely not be developed with implementation of
the project. Nevertheless, the City's other identified housing developments and sites have substantial capacity for the
development of additional residential housing.
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C. POPULATION, EMPLOYMENT, AND HOUSING
the required Housing Mitigation fee would further reduce the less -than -significant impacts of the
project on the local jobs -to -employed residents ratio.
In addition, while Table V.0-7 assumes an increase in jobs in the City, it does not take into account the
increase in employed residents that would likely be associated with the proposed project because it is
not known exactly how many employees would become residents of Cupertino. It is likely that if these
additional employed residents were taken into account, the ratio would be slightly more balanced.
C. Significant Impacts. Implementation of the proposed project would not result in any
significant population, employment, or housing impacts.
d. Cumulative Impacts. The proposed project is not expected to cumulatively cause a substantial
amount of population growth in the City and Santa Clara County. According to ABAG, Cupertino's
Citywide population is expected to increase by 5,020 residents between 2015 and 2035. Countywide
population is expected to increase by 431,390 residents during the same 20 -year period. Based on
conservative assumptions that would likely over-estimate the number of new residents generated by
the project, the project could result in approximately 936 new residents in Cupertino and 9,356 total
new residents in the region, based on existing Apple employee housing trends. The addition of 936
new residents would represent approximately 19 percent of Citywide growth during the 2015-2035
period. The addition of 9,356 new residents would represent approximately 1.9 percent of County-
wide growth during the same time period (the region -wide percentage would be even lower). 26
Approved and foreseeable development in the area would also increase the population of Cupertino
and Santa Clara County. However, because the project would account for such a small percentage of
the anticipated regional population growth during the 20 -year period, and would not cumulatively
exceed 2035 growth projections for population, it would not make a significant contribution to
cumulative population growth.
The proposed project, in conjunction with other projects, would increase employment in the City. The
9,356 net new jobs created by the proposed project (based on existing employment conditions on the
site, which reflect a low rate of utilization of existing commercial space) would exceed Citywide job
growth (5,070 jobs) projected by ABAG between 2015 and 2035 by 4,286 jobs. However, the
proposed project would represent only 2 percent of Countywide job growth projected by ABAG
between 2015 and 2035. The jobs that would be created by the proposed project and other proposed
developments would be within ABAG's projected growth for the County. Therefore, the proposed
project would not substantially contribute to a cumulative impact related to employment growth. In
addition, as previously described, the proposed project would be consistent with General Plan policies
that seek to retain and intensify employment on the project site. Therefore, the project's contribution
to regional employment would be beneficial.
Based on housing patterns of existing Apple employees, approximately 936 project employees would
be expected to live in Cupertino, which could increase demand for housing. In conjunction with other
office and commercial development projects, housing demand is generally expected to increase in the
area. However, as illustrated in Table V.0-6, the RHNA housing units expected to be constructed in
the City and region in the near-term would more than satisfy the demand for housing associated with
26 Ibid.
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V. SETTING, IMPACTS AND MITIGATION MEASURES
C. POPULATION, EMPLOYMENT, AND HOUSING
the proposed project. In addition, Apple has agreed to pay 100 percent of the City's Housing
Mitigation fee, or twice the base rate, which is designed to increase the local supply of affordable
housing. As a result, the proposed project would not make a significant contribution to cumulative
impacts related to the shortage of housing. Lastly, as noted above, the project would not displace
people or housing from the site and thus would not contribute to cumulative impacts in those areas.
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