CC packet 8-20-2019, agenda and item 11 docs onlyCITY OF CUPERTINO
CITY COUNCIL
AGENDA
10350 Torre Avenue, Council Chamber
Tuesday, August 20, 2019
5:30 PM
Televised Special Meeting Study Session (5:30) and Regular Meeting (6:45)
NOTICE AND CALL FOR A SPECIAL MEETING OF THE CUPERTINO CITY COUNCIL
NOTICE IS HEREBY GIVEN that a special meeting of the Cupertino City Council is hereby
called for Tuesday, August 20, 2019, commencing at 5:30 p.m. in Community Hall Council
Chamber, 10350 Torre Avenue, Cupertino, California 95014. Said special meeting shall be
for the purpose of conducting business on the subject matters listed below under the
heading, “Special Meeting." The regular meeting items will be heard at 6:45 p.m. in
Community Hall Council Chamber, 10350 Torre Avenue, Cupertino, California.
SPECIAL MEETING
ROLL CALL - 5:30 PM
STUDY SESSION
1.Subject: Study session to discuss how the 2016 Bicycle Transportation Plan and 2018
Pedestrian Transportation Plan Projects have been brought to Council for
consideration, how currently funded projects are being scheduled for completion, and
recommendation of project information and impacts staff is to consider and describe for
future funding requests
Recommended Action: Receive presentation and provide input
Staff Report
A - Master Plan Process
B - Project Initiation Form
C - CIP Approval Process
D - Bike-Ped Project Schedules
E - Budget Detail Modified rev 1
ADJOURNMENT
REGULAR MEETING
PLEDGE OF ALLEGIANCE - 6:45 PM
Page 1
08/20/19
1 of 598
City Council Agenda August 20, 2019
ROLL CALL
CEREMONIAL MATTERS AND PRESENTATIONS
POSTPONEMENTS
ORAL COMMUNICATIONS
This portion of the meeting is reserved for persons wishing to address the Council on any matter not on
the agenda. The total time for Oral Communications will ordinarily be limited to one hour. Individual
speakers are limited to three (3) minutes. As necessary, the Chair may further limit the time allowed to
individual speakers, or reschedule remaining comments to the end of the meeting on a first come first
heard basis, with priority given to students. In most cases, State law will prohibit the Council from
discussing or making any decisions with respect to a matter not listed on the agenda.
REPORTS BY COUNCIL AND STAFF (10 minutes)
1.Subject: Report on Committee assignments
Recommended Action: Report on Committee assignments
CONSENT CALENDAR
Unless there are separate discussions and/or actions requested by council, staff or a member of the
public, it is requested that items under the Consent Calendar be acted on simultaneously.
2.Subject: FY 2017-18 Comprehensive Annual Financial Report (CAFR) and related
supplemental reports.
Recommended Action: Approve the FY 2017-18 Comprehensive Annual Financial
Report (CAFR) and related supplemental reports.
Staff Report
A - FY 2017-18 CAFR
B - FY 2017-18 GAGAS Report
C - FY 2017-18 Appropriation Limit AUP Report
D - FY 2017-18 Investment AUP Report
3.Subject: Treasurer’s Investment Report for period ending June 30, 2019
Recommended Action: Approve the Treasurer's Investment Report for period ending
June 30, 2019.
Staff Report
A - Chandler Investment Report
B - Wells Fargo Market Cost Report
Page 2
08/20/19
2 of 598
City Council Agenda August 20, 2019
4.Subject: Updated Joint Use Agreement between the City of Cupertino and Cupertino
Union School District (CUSD) pertaining to maintenance and improvements of certain
open space areas within specific school sites for reimbursement of authorized Clean
Water and Storm Protection Fees
Recommended Action: 1. Authorize the City Manager to execute an updated Joint Use
Agreement between the City of Cupertino and CUSD; and
2. Authorize expenditures in the amount of $8,705.80 from the Non-Point Source Fund
to reimburse CUSD for Clean Water and Storm Protection Fees associated with certain
open space areas within specific school sites
Staff Report
A - Red-lined version of the November 16, 2016 JUA
B - Clean copy version of the proposed JUA
5.Subject: Adopt the City of Cupertino Annex to the Santa Clara County Community
Wildfire Protection Plan as the City of Cupertino Community Wildfire Protection Plan.
Recommended Action: Adopt Resolution No. 19-107 which adopts the City of
Cupertino Annex to the Santa Clara County Community Wildfire Protection Plan as the
City of Cupertino’s Community Wildfire Protection Plan.
Staff Report
A - Draft Resolution
B – City of Cupertino Community Wildfire Protection Plan – Annex 7
6.Subject: Award Byrne Avenue Sidewalk Improvements, Project Number 2016-10
Recommended Action: Authorize the City Manager to award a contract to Granite
Construction Company in the amount of $1,853,984 and approve a construction
contingency of $185,398, for a total of $2,039,382 for the Byrne Avenue Sidewalk
Improvements, Project Number 2016-10
Staff Report
A - Draft Contract
7.Subject: Authorize the City Manager to execute a lease agreement with the Regents of
the University of California for the Rolling Hills 4H Club for facilities at the McClellan
Ranch Preserve
Recommended Action: Authorize the City Manager to execute a lease agreement with
the Regents of the University of California for the Rolling Hills 4H Club for facilities at
the McClellan Ranch Preserve for a period of five years, from September 1, 2019
through August 31, 2024
Staff Report
A - Draft Rolling Hills 4-H Lease Agreement - 2019
B - Existing Rolling Hills 4-H Lease Agreement - 2009
C - Amendment 1 to Existing 4-H Agreement
D - Amendment 2 to Existing 4-H Agreement
Page 3
08/20/19
3 of 598
City Council Agenda August 20, 2019
8.Subject: Agreement with Nomad Transit LLC (Via Transportation Inc.) for the
18-month On-Demand Community Shuttle Pilot Program
Recommended Action: Authorize the City Manager to execute an agreement with
Nomad Transit LLC (Via Transportation Inc.) for the 18-month On-Demand
Community Shuttle Pilot Program with a not-to-exceed cost of $1,750,000
Staff Report
A - Draft Agreement
9.Subject: Accept termination of Audit Committee member James (Jim) Luther and direct
staff to fill the unscheduled vacancy in January 2020 concurrent with the annual
recruitment for all commission and committee members’ terms expiring in January,
2020.
Recommended Action: Accept termination of Audit Committee member James (Jim)
Luther and direct staff to fill the unscheduled vacancy in January 2020 concurrent with
the annual recruitment for all commission and committee members’ terms expiring in
January, 2020.
Staff Report
A - Termination Letter
B – Adopted Resolution No. 16-137 Establishing Rules Governing Recruitment
SECOND READING OF ORDINANCES
10.Subject: Second reading of Ordinance No. 19-2186, approving a development
agreement between the City of Cupertino and Cupertino Village LP for the Cupertino
Village Hotel project located at 10801 and 10805 North Wolfe Road; APN #316-45-017,
316-05-056
Recommended Action: Conduct the second reading of Ordinance No. 19-2186: "An
Ordinance of the City Council of the City of Cupertino Approving a Development
Agreement for the Development of a new 5-story, 185 room hotel with associated site
and landscaping improvements located at 10801 and 10805 North Wolfe Road (APN:
316-45-017 and 316-05-056.”
Staff Report
A - Ordinance No. 19-2186
B - Development Agreement
C - Redline Version of Development Agreement
PUBLIC HEARINGS
11.Subject: Vallco Shopping District Special Area General Plan Amendments and
Associated Zoning Amendments; and Second Addendum to the Environmental Impact
Report for the 2014 General Plan Amendment, Housing Element Update, and
Associated Rezoning Project
Page 4
08/20/19
4 of 598
City Council Agenda August 20, 2019
Recommended Action: That the City Council:
1. Conduct the public hearing; and
2. Adopt:
a. Resolution No. 19-108, a resolution adopting a Second Addendum to the
Environmental Impact Report for the 2014 General Plan Amendment, Housing Element
Update, and Associated Rezoning Project (Attachment 1);
b. Resolution No. 19-109 (GPA-2019-01), a resolution amending the General Plan to
remove Office as a permitted use from the Vallco Shopping District Special Area and
remove associated office allocations (Attachment 2);
c. Resolution No. 19-110 (GPA-2019-02), a resolution amending the General Plan and
General Plan Land Use Map to establish height limits and enact development standards
for residential uses within the Vallco Shopping District Special Area and identifying a
recommended location for future residential development on 13.1 acres of the Special
Area (Attachment 3);
2. Introduce and conduct the first reading of:
a. Ordinance No. 19-2187 (MCA-2019-01), "An Ordinance of the City Council of the
City of Cupertino eliminating references in the Municipal Code to the Vallco Town
Center Specific Plan and adding language establishing development standards for a
new Mixed Use Planned Development with Multifamily (R3) Residential and General
Commercial zoning designation (P(R3,CG))" (Attachment 4); and
b. Ordinance No. 19-2188 (Z-2019-01), "An Ordinance of the City Council of the City of
Cupertino amending the zoning map to rezone 13.1 acres within the Vallco Shopping
District Special Area to Mixed Use Planned Development with Multifamily (R3)
Residential zoning P(R3,CG) and General Commercial uses and the remainder of the
Special Area to General Commercial (CG)" (Attachment 5).
Staff Report
1 - Draft City Council Resolution Adopting Addendum
2 - Draft GPA-2019-01 City Council Resolution Approving Office GPA
3 - Draft GPA-2019-02 City Council Resolution Approving Residential GPA
4 - Draft MCA-2019-01 City Council Ordinance re Vallco Municipal Code Amends
5 - Draft Z-2019-01 City Council Ordinance re Vallco Zoning Amends
6 - August 2, 2019 Letter to City from HCD
7 - August 12, 2019 Response Letter to HCD from City
8 - Existing General Plan Vallco Shopping District Special Area policies
9 - Aerial of Vallco Shopping District Special Area and APN Map
10 - Alt Site Locations for Res Uses within Vallco Shopping District
11 - Planning Commission Resolution 6884
12 - August 14, 2019 Hausrath Economics Group Memo
13 - Second Addendum to GPA, HE, and Associated Rezoning Project EIR
14 - Responses to Comments on 2nd Addendum to 2014 Certified GPA, HE, and Associated Rezoning
Draft EIR
ORDINANCES AND ACTION ITEMS
Page 5
08/20/19
5 of 598
City Council Agenda August 20, 2019
12.Subject: Establish a Residential Clean Water Rebate Program offering various financial
incentives to decrease storm water runoff and establish a 20% cost-share of Clean Water
and Storm Protection Fees for extremely low and very low-income property owners
Recommended Action: 1. Authorize expenditures not to exceed $25,000 per year from
the Environmental Management/Clean Creeks Fund to:
A. fund the Santa Clara Valley Water District’s Rainwater Capture Program to
match rebates for rain barrels, cisterns, and rain garden construction for Cupertino
residential property owners offered through the Santa Clara Valley Water District’s
new program, and
B. to fund a separate City program that would provide property owners up to $3.00
per square foot of impervious surface removed and replaced with pervious hardscape;
and
2. Adopt Resolution No. 19-111 to approve a Budget Adjustment in the amount of
25,000 in the Non-Point Source Fund for the Santa Clara Valley Water District’s
Rainwater Capture Program, and the new impervious pavement conversion rebate
pilot program (230-81-802); and
3. Authorize a 20% cost-share of Clean Water and Storm Protection Fees for extremely
low and very low-income property owners; and
4. Authorize expenditures not to exceed $14,000 per year from the Non-Point Source
Fund for a 20% cost-share of the 2019 Clean Water and Storm Protection fee for
extremely low and very low-income property owners (230-81-802)
Staff Report
A - City SCVWD Cost Share Agreement
B - Draft Resolution
13.Subject: Amendment to the FY 2019-2020 City Council Work Program to add a new
Community Development Work Program Item related to increasing noticing for
development projects.
Recommended Action: That the City Council decide whether to amend the 2019/2020
City Work Program as proposed and appropriate funds to complete the project.
Staff Report
A - Excerpts from FY 2019-2020 Work Program
ORAL COMMUNICATIONS - CONTINUED (As necessary)
COUNCIL AND STAFF COMMENTS AND FUTURE AGENDA ITEMS
ADJOURNMENT
The City of Cupertino has adopted the provisions of Code of Civil Procedure §1094.6; litigation
challenging a final decision of the City Council must be brought within 90 days after a decision is
announced unless a shorter time is required by State or Federal law.
Page 6
08/20/19
6 of 598
City Council Agenda August 20, 2019
Prior to seeking judicial review of any adjudicatory (quasi-judicial) decision, interested persons must
file a petition for reconsideration within ten calendar days of the date the City Clerk mails notice of the
City’s decision. Reconsideration petitions must comply with the requirements of Cupertino Municipal
Code §2.08.096. Contact the City Clerk’s office for more information or go to
http://www.cupertino.org/index.aspx?page=125 for a reconsideration petition form.
In compliance with the Americans with Disabilities Act (ADA), anyone who is planning to attend the
next City Council meeting who is visually or hearing impaired or has any disability that needs special
assistance should call the City Clerk's Office at 408-777-3223, 48 hours in advance of the Council
meeting to arrange for assistance. Upon request, in advance, by a person with a disability, City Council
meeting agendas and writings distributed for the meeting that are public records will be made available
in the appropriate alternative format. Also upon request, in advance, an assistive listening device can be
made available for use during the meeting.
Any writings or documents provided to a majority of the Cupertino City Council after publication of
the packet will be made available for public inspection in the City Clerk’s Office located at City Hall,
10300 Torre Avenue, during normal business hours and in Council packet archives linked from the
agenda/minutes page on the Cupertino web site.
IMPORTANT NOTICE: Please be advised that pursuant to Cupertino Municipal Code 2.08.100
written communications sent to the Cupertino City Council, Commissioners or City staff concerning a
matter on the agenda are included as supplemental material to the agendized item. These written
communications are accessible to the public through the City’s website and kept in packet archives. You
are hereby admonished not to include any personal or private information in written communications to
the City that you do not wish to make public; doing so shall constitute a waiver of any privacy rights
you may have on the information provided to the City.
Members of the public are entitled to address the City Council concerning any item that is described in
the notice or agenda for this meeting, before or during consideration of that item. If you wish to address
the Council on any issue that is on this agenda, please complete a speaker request card located in front
of the Council, and deliver it to the Clerk prior to discussion of the item. When you are called, proceed to
the podium and the Mayor will recognize you. If you wish to address the City Council on any other
item not on the agenda, you may do so by during the public comment portion of the meeting following
the same procedure described above. Please limit your comments to three (3) minutes or less.
Page 7
08/20/19
7 of 598
1
CITY COUNCIL STAFF REPORT
August 20, 2019
Subject
Vallco Shopping District Special Area General Plan Amendments and Associated Zoning
Amendments; and Second Addendum to the Environmental Impact Report for the 2014
General Plan Amendment, Housing Element Update, and Associated Rezoning Project
Recommended Action
That the City Council:
1. Receive a staff presentation;
2. Conduct the public hearing;
3. Adopt:
a. Resolution No. _______, a resolution adopting a Second Addendum to the
Environmental Impact Report for the 2014 General Plan Amendment, Housing
Element Update, and Associated Rezoning Project (Attachment 1);
b. Resolution No. _______ (GPA-2019-01), a resolution amending the General Plan to
remove Office as a permitted use from the Vallco Shopping District Special Area
and remove associated office allocations (Attachment 2);
c. Resolution No. _______ (GPA-2019-02), a resolution amending the General Plan
and General Plan Land Use Map to establish height limits and enact development
standards for residential uses within the Vallco Shopping District Special Area and
identifying a recommended location for future residential development on 13.1
acres of the Special Area (Attachment 3);
4. Introduce and conduct the first reading of:
a. Ordinance No. _______ (MCA-2019-01), an ordinance eliminating references in the
Municipal Code to the Vallco Town Center Specific Plan and adding language
establishing development standards for a new Mixed Use Planned Development
with Multifamily (R3) Residential and General Commercial zoning designation
(P(R3,CG)) (Attachment 4); and
b. Ordinance No. _______ (Z-2019-01), an ordinance amending the zoning map to
rezone 13.1 acres within the Vallco Shopping District Special Area to Mixed Use
Planned Development with Multifamily (R3) Residential zoning P(R3,CG) and
2
General Commercial uses and the remainder of the Special Area to General
Commercial (CG) (Attachment 5).
Discussion
Background:
The City’s General Plan designates the "Vallco Shopping District Special Area" for office,
commercial, and residential uses at a density of 35 dwelling units per acre on-site to be
developed pursuant to a specific plan, which generally covers the properties on which
the Vallco Mall is developed. The General Plan identifies approximately 58 acres within
the Vallco Shopping District Special Area as available for development and assigns
development allocations for the permitted office, commercial, and residential uses.
Because the General Plan contemplated that redevelopment of the Vallco Shopping
District Special Area would occur pursuant to a specific plan developed for the area,
development standards apart from the residential density limitation (such as height and
setbacks) were to be imposed through the specific plan.
The Housing Element of the General Plan further identifies the Vallco Shopping District
Special Area as a "Priority Housing Site," which means that the City plans to
accommodate a portion of its Regional Housing Need Allocation (RHNA) by permitting
residential development within the Vallco Shopping District Special Area. The Housing
Element identifies 389 residential units to be a realistic development yield for the site,
and it provides that the specific plan would allow 389 units "by right" at a minimum
density of 20 units per acre and a maximum of 35 units per acre.
To ensure that the Priority Housing Sites identified in the Housing Element are available
for residential development as required by State law, the Housing Element includes two
scenarios to satisfy its RHNA: “Scenario A” and “Scenario B”. Scenario A is consistent
with the existing land use regulations described above. The General Plan Land Use
Element provides that the City will consider removing the Office and Residential
development allocations in the Vallco Shopping District Special Area if a Specific Plan for
the area is not adopted by May 31, 2018. Under Scenario B, if the Residential development
allocations are removed from the Vallco Shopping District Special Area, the remaining
RHNA would be accommodated on other sites by approving General Plan and zoning
amendments to increase their residential capacity.
The Specific Plan that had been prepared for the Vallco area was the subject of a certified
petition calling for a referendum, and the City Council rescinded that Specific Plan at its
May 7, 2019 meeting. Subsequently, at its June 18, 2019 meeting, the City Council
considered removing the Office and Residential development allocations in the Vallco
Shopping District Special Area and adopting Scenario B as described in the Housing
Element. After considering its options, the City Council directed staff to prepare a
3
General Plan Amendment to permit 389 residential units by right within the Vallco
Shopping District Special Area, which would provide a mechanism to accommodate the
RHNA in a manner consistent with Scenario A in advance of completing a specific plan
for the area rather than adopting Scenario B to accommodate the City’s RHNA. In
addition, the City Council directed that staff bring forward a General Plan Amendment
to remove Office as a permitted use within the Vallco Shopping District Special Area and
remove the associated office development allocation. The City Council also provided
direction to continue the planning effort to create a specific plan, which could create the
potential for additional residential development within the Vallco Shopping District
Special Area.
Note that parcels comprising 50.82 acres of the Vallco Shopping District received a
ministerial approval of a mixed-use project pursuant to Senate Bill 35 (Government Code
Section 65913.4, or SB 35). That approval would not be affected by the proposed General
Plan and zoning amendments. SB 35 grants approved projects a right to proceed
regardless of subsequent changes in the local planning and zoning requirements. The
amendments would apply to future project applications if the Vallco SB 35 project is not
developed. There are two parcels in the Vallco Shopping District that are not a part of the
SB 35 project. One parcel is the site of the soon-to-open Hyatt Hotel which would remain
a permitted use under all the options above. The other parcel is the 5.16 acre Simeon
parcel which is currently a parking lot associated with the mall. Future use of that site
would be subject to any General Plan amendments adopted.
On August 2, 2019, the Department of Housing and Community Development (HCD)
sent the City a letter regarding a potential violation of State housing element law if the
Vallco SB 35 project is overturned and the City does not take action to complete the
rezoning called for in its adopted Housing Element to implement either Scenario A or
Scenario B (see Attachment 6, and see Attachment 7 for the City's response letter to HCD).
As discussed in HCD's letter, because the Vallco SB 35 project is approved, the City has
satisfied its Housing Element obligation to make land available to accommodate at least
389 residential units within the Vallco Shopping District Special Area. If the approval is
overturned, however, the City will be required to identify a location (or locations) in the
City to accommodate the City's remaining RHNA. The proposed General Plan and
zoning code amendments would make at least 389 residential units available to develop
by-right within the Vallco Shopping District Special Area.
The remainder of this analysis describes the General Plan and zoning code amendments
that are proposed to implement City Council's direction.
Analysis:
To implement the City Council’s direction, City staff have prepared draft General Plan
and zoning amendments. The draft amendments were considered by the Planning
4
Commission following a public hearing on July 30, 2019. Each of these amendments, and
the Planning Commission's recommendations, are described in detail below.
General Plan Amendments
Land Use Designations
The current General Plan Land Use map identifies the Vallco Shopping District as
allowing the following land use: Commercial/Residential/Office. The General Plan
provides that this designation is intended for mixed-use development that would feature
predominantly commercial and office uses, with residential uses allowed to offset job
growth, better balance the Citywide jobs to housing ratio, and where compatible with the
primarily non-residential character of the area.
The City Council has expressed concern that by allowing office development within the
Vallco Shopping District Special Area, the City would be further contributing to the
imbalance between high-paying jobs and available housing in the City. Accordingly, the
proposed General Plan amendment would remove the “Commercial/Residential/Office”
land use designation from the Vallco Shopping District Special Area (see Attachment 2)
and replace it with two new land use designations: “Regional Shopping” and “Regional
Shopping/Residential” (see Attachment 3) to remove Office as a permitted use while
retaining the Commercial and Housing uses contemplated for the site in the existing
General Plan.
The Regional Shopping Designation would permit retail sales, businesses, service
establishments with direct contact with customers, and hotel uses, along with restaurant
and entertainment uses, in the Vallco Shopping District Special Area. The Regional
Shopping/Residential designation would permit residential development "by right" at a
maximum density of 35 dwelling units per acre and a minimum density of 29.7 dwelling
units per acre. It would also permit all of the uses allowed under the Regional Shopping
Designation as ground floor uses beneath residential uses, however the commercial uses
would not be required in the areas designated “Regional Shopping/Residential”.
For historic reference, in amending the General Plan land use designation at this site in
2014 the General Plan amendments added the “Office” land use to the existing land use
designation for the Vallco Shopping District Special Area. Prior to that, the "Vallco Park
Area" covered the current special area and the former Rose Bowl site (now the
Nineteen800 development). The 2005 General Plan designated the area
"Commercial/Residential," although the land use designation description contemplated
some office uses within the Vallco Park Area that were included in a development
agreement that expired in 2009. In the 1993 General Plan, Vallco Park Area permitted
Commercial/Residential uses in the Special Area, which is similar to the new designations
5
now proposed, with office and industrial uses permitted on what is now the Nineteen800
development.
Development Standards
Non-Residential Development: The development standards for non-residential
development in the Vallco Shopping District Special Area would be as follows:
1. Development Allocations: The General Plan Amendment would delete the Office
development allocation within the Vallco Shopping District Special Area. The
following mix of non-residential uses would continue to be allowed in the Special
Area, consistent with the current General Plan:
a. Commercial – 1,207,704 square feet
b. Hotel – 339 rooms
2. Building Heights: Up to 60 feet.
3. Setbacks: Establish a minimum one-foot setback for every one-foot increase in
height from the existing North Blaney neighborhood. Setbacks remain the same
from the curb line of Wolfe Road and Stevens Creek Boulevard.
Residential Development: The development standards for residential development would
be amended as follows:
1. Development Allocations: The General Plan Amendments would not change the
Residential allocation. 389 units would continue to be allocated within the Vallco
Shopping District Special Area (note, however, that some State laws such as
density bonus and SB 35 may require the City to approve additional development
when certain conditions are satisfied, as described below).
2. Residential Density: 35 units per acre on 13.1 acres.
To maintain consistency with the Housing Element, the Vallco Shopping District
Special Area must permit at least 389 residential units by right at a density of 35
dwelling units per acre. This would require a minimum of 11.1 acres for residential
use; however, the City's Housing Element assumes that a project site will not
develop with 100% efficiency (to account for required setbacks, driveways, open
space etc.). The Housing Element (which HCD determined complied with the
requirements of State housing element law) assumed that Priority Housing Sites
would yield 85% of the maximum unit count. Therefore, to be consistent with the
Housing Element’s methodology and demonstrate that 389 units are realistically
achievable, enough land should be designated to allow 458 units at 35 dwelling
units per acre (85% x 458 units = 389 units).
6
To accommodate 458 units at 35 dwelling units per acre, a minimum of 13.08 acres
of land must be designated for Regional Shopping/Residential Use. For purposes
of the General Plan amendment, this has been rounded to 13.1 acres, which could
allow for 459 units. Note that if future development is proposed at the maximum
allowed density and provides sufficient affordable housing to qualify for a 35%
density bonus (allowed under State law), as many as 620 residential units may be
developed in this area.
3. Building Heights:
a. For mixed use development: Up to 75 feet for residential over ground-floor
commercial uses
b. For residential only development: Up to 60 feet
4. Setbacks: Would be the same as the setbacks discussed previously under non-
residential development. Minimum one-foot setback for every one-foot increase in
height from the existing North Blaney neighborhood. Setbacks remain the same
from the curb line of Wolfe Road and Stevens Creek Boulevard.
Amendments to Goal LU-19
The General Plan contains provisions concerning future planning for the Vallco Shopping
District within Goal LU-19. The existing General Plan policies regarding the Vallco
Shopping District Special Area are attached to this Staff Report as Attachment 8. The
following amendments are proposed to the policies and strategies included as part of
Goal LU-19.
1. Figures: A new Figure LU-4 reflecting the new Regional Shopping/Residential Use
where residential uses would be permitted will be included based on the City
Council's determination regarding the location of residential uses. An aerial view
of the project site and an Assessor Parcel Map have been included as Attachment
9 to help the discussion. In addition, aerials with overlays covering approximately
13.1 acres of the Special Area illustrating potential alternative locations for the
Regional Shopping/Residential Use designation have been provided as
Attachment 10. Among several locations on the site, Attachment 10 identifies four
potential locations for the City Council to consider:
a. West of Wolfe Road and north of Vallco Parkway;
b. West of Wolfe Road at the terminus of Vallco Parkway;
c. West of Wolfe Road between Vallco Parkway and Stevens Creek Boulevard; or
d. East of Wolfe Road and north of Vallco Parkway.
7
Potential locations (a) and (b) are unlikely to support any commercial
development, because they lack visibility from major streets and have fewer
opportunities for pedestrian connections to other large developments. However,
these potential locations could likely support residential uses without a
commercial component.
Potential location (c) would have frontage along Stevens Creek Boulevard and be
located directly across Wolfe Road from existing higher density residential mixed-
use developments, i.e., the Nineteen800 and Main Street developments. This may
make the location better-suited for a mixed-use development, rather than solely
for residential uses. Potential location (d) is located directly across Vallco Parkway
from the Nineteen800 development, which may create a similar relationship and
potential for mixed-use.
2. Policies: To reflect the removal of office as a permitted use, to regulate housing
development that may occur by-right prior to a specific plan, and to provide policy
guidance for a future specific plan that may increase the residential capacity in the
Vallco Shopping District Special Area (all as previously discussed), the General
Plan amendments would revise the text related to these policies as shown in
Attachment 3. The text amendments would:
a. Allow residential as a permitted use by-right on 13.1 acres, with the heights
and densities discussed above;
b. Provide guidance for a future specific plan and related General Plan
Amendment, which may allow additional housing within the Vallco Shopping
District, especially affordable to low, very low, and extremely low-income
households and housing for persons with special needs, including
developmental disabilities.
c. Provide for appropriate cultural sensitivity training concerning Native
American tribal resources prior to ground-disturbing activities.
The General Plan would retain policies related to requiring a minimum of 600,000
square feet of retail use and no more than 30 percent of commercial space
developed with entertainment uses, requiring development in a street grid with
improved public street connections to encourage development in the form of a
town center.
8
Zoning Amendments
To implement the General Plan amendments, the following two zoning amendments are
also required.
1. Municipal Code Amendment: A new zoning category: Mixed-Use Planned
Development with Multifamily (R3) Residential and General Commercial zoning
designation (P(R3,CG)) is proposed to be added to the text of the Municipal Code.
This zoning designation would include development standards enabling the mixed
use or residential-only development contemplated for the Vallco Shopping District
Special Area as discussed above (see Attachment 4).
2. Zoning Map Amendment: The Vallco Shopping District Special Area would be
rezoned to designate 13.1 acres within the Special Area as Mixed Use Planned
Development with Multifamily (R3) Residential and General Commercial zoning
(P(R3,CG)) and the remainder of the Special Area to General Commercial (CG) (see
Attachment 5).
Planning Commission Recommendations
On July 30, 2019, the Planning Commission held a public hearing regarding the proposed
General Plan and zoning amendments. Following the public hearing, the Planning
Commissioners deliberated regarding the amendments. The Planning Commission
discussed the importance of providing options for additional residential development
within the Vallco Shopping District Special Area, but the Commissioners did not reach
agreement that the proposed amendments were necessary at this time. The Planning
Commission did not want to identify a precise location for residential uses within the
Vallco Shopping District Special Area before conducting a more comprehensive planning
process. Commissioners also expressed concern regarding the economic feasibility of
redeveloping the Special Area if residential uses were limited to 13.1 acres, and there was
discussion of conducting a more robust community engagement process regarding future
development.
Two motions were introduced to approve resolutions recommending adoption of the
General Plan amendments, but neither motion passed. Because the Planning
Commission did not recommend adoption of the General Plan amendments, they also
did not recommend adoption of the zoning amendments that would have implemented
the proposed General Plan amendments.
The Planning Commission approved Resolution 6884 by a vote of 4-0 (Commissioner
Moore recused), which recommends that the City Council adopt a General Plan
Amendment solely to establish a height limit of 60 feet for residential uses and 75 feet for
residential uses above ground-level commercial within the Vallco Shopping District
9
Special Area; subject to economic analysis of the feasibility of development consistent
with those General Plan amendments and subject to additional public engagement.
Planning Commission Resolution 6884 is included as Attachment 11.
Financial Feasibility Assessment
To assess the viability of developing 13.1 acres of the Vallco Shopping District Special
Area as residential or residential over ground floor commercial uses, but without office
development, the City commissioned a preliminary financial feasibility assessment of the
proposed General Plan and zoning amendments, which is included as Attachment 12.
The analysis studied the feasibility of residential or mixed use development that would
be allowed under the proposed Regional Shopping/Residential land use designation and
associated zoning, independent from development on the remainder of the site.
The analysis identifies high-density ownership product as the most economically
beneficial use under the proposed Regional Shopping / Residential land use designation.
Assuming 459 units develop (at the maximum 35 dwelling units an acre on all 13.1 acres
without a density bonus), 69 units would be dedicated at affordable sales prices to
moderate and median income households and the remaining 390 units could be sold at
market rates. Based on the analysis's estimates of an adjusted land basis, lease rates, sale
values, development costs (including an assumed developer return on investment),
operating costs, and permits and fees, this program results in a positive residual land
value, i.e., the development program would be financially feasible based on the
preliminary analysis results.
Consistency with Government Code Section 65863
State housing law requires that the City maintain sufficient sites to accommodate its
RHNA at each income level throughout the eight-year “planning period” that its Housing
Element is effective. Government Code Section 65863 prohibits the reduction of
residential capacity on sites included in the Housing Element inventory unless: (1) the
reduction is consistent with the adopted General Plan, including the Housing Element;
and (2) the remaining sites identified in the Housing Element are adequate to meet the
remaining RHNA by income level.
As an initial matter, the Housing Element identified a realistic capacity of 389 units at a
density suitable for housing affordable to lower income households in the Vallco
Shopping District Special Area. The General Plan and zoning amendments do not reduce
the capacity of the Special Area below 389 units, so the amendments do not result in a
“lower residential density” in the Special Area (as that term is used in Government Code
Section 65863(g)(1)).
However, even if the amendments did result in a lower residential density as defined in
the statute, they would still be permitted under Government Code Section 65863. The
10
Land Use and Housing Elements of the General Plan both contemplated that 389 units
would be developed in the Special Area, and the amendments make the development of
at least 389 units permitted by right. Therefore, the amendments are consistent with the
adopted General Plan, including the Housing Element.
In addition, the amendments leave a surplus of sites available for development that is
suitable for housing affordable to lower income households. For the current Housing
Element, the City is required to plan for at least 563 lower income units. So far in the
cycle, the City has issued building permits for 19 units and approved projects (the
Hamptons and Marina) that would provide up to 57 more units. These units, plus the 389
units that would be permitted in the Vallco Shopping District Special Area, leave a
balance of 98 units. The Housing Element identifies the Oaks in its inventory as being
available for 200 units, more than enough to meet the remaining RHNA. Therefore, the
amendments are both consistent with the requirements of Government Code Section
65863 and serve to implement the rezoning called for in the Housing Element.
Environmental Analysis
In 2014, the City Council certified a Final Environmental Impact Report (EIR) for the
General Plan Amendment, Housing Element Update, and Associated Rezoning Project
(State Clearinghouse No. 2014032007), which was a program EIR prepared in compliance
with California Environmental Quality Act (CEQA) Guidelines Section 15168. The Final
EIR analyzed land use alternatives that included Citywide development allocations (as
well as building heights and densities) for five Special Areas, seven Study Areas, and
other Special Areas in connection with the adoption of the Cupertino Community Vision
2015-2040 (General Plan). The General Plan and Associated Rezoning were adopted in
December 2014, the Housing Element Update was adopted in May 2015, and
modifications to the text and figures of the General Plan were adopted in October 2015
following adoption of an Addendum to the EIR.
When a lead agency has certified an EIR, Public Resources Code Section 21166 and CEQA
Guidelines 15162 provide that no subsequent environmental review shall be required
unless specified conditions have occurred (substantial changes in the project, substantial
changes with respect to the circumstances under which the project is undertaken, or new
information of substantial importance which was not known and could not have been
known when the EIR was certified) and would result in new significant environmental
effects or a substantial increase in the severity of significant environmental effects
requiring major revisions to the EIR. CEQA Guidelines Section 15164 further states that
if some changes or additions to a previously certified EIR are needed, but subsequent
review is not required under CEQA Guidelines 15162, an addendum shall be prepared.
The City has prepared a Second Addendum to the Final EIR to evaluate whether the
proposed modifications to the Vallco Shopping District Special Area described in this
11
Staff Report would require major revisions to the Final EIR due to new significant
environmental effects or a substantial increase in the severity of significant
environmental effects previously identified in the EIR. The Second Addendum is
included as Attachment 13, and responses to comments received on the Second
Addendum are provided in Attachment 14. As demonstrated in the Second Addendum
and the responses to comments, the record includes substantial evidence in support of
the conclusion that no subsequent environmental review is required because none of the
conditions that would require preparation of a subsequent EIR pursuant to Public
Resources Code Section 21166 and CEQA Guidelines Section 15162 have occurred.
Therefore, it is recommended that the City Council adopt the Second Addendum, and no
further environmental review is required for the modifications to the Vallco Shopping
District Special Area described in this Staff Report.
Public Noticing and Outreach
The following noticing has been conducted for this project:
Notice of Public Hearing & Legal Ad
(available at least 10 days prior to hearing, unless noted otherwise)
Agenda
(posted five days prior to
hearing, unless noted
otherwise)
Legal ad placed in newspaper
96 Public Hearing notices mailed to property owners
within 300 feet of the site
36 notices mailed to agencies, service and utility providers
E-notification sent to 776 email addresses
Display (courtesy) ad placed in newspaper
Posted on the City's
official notice
bulletin board
Posted on the City
of Cupertino’s Web
site
Prepared by: Benjamin Fu, Director, Community Development Department
Approved for Submission by: Deb Feng, City Manager
Attachments:
1. Draft Resolution No. _______, adopting a Second Addendum to the Environmental
Impact Report for the 2014 General Plan Amendment, Housing Element Update,
and Associated Rezoning Project
2. Draft Resolution No. _______, adopting GPA-2019-01, a resolution amending the
General Plan to remove office as a permitted use from the Vallco Shopping District
Special Area and remove associated office allocations
3. Draft Resolution No. _______, adopting GPA-2019-02, a resolution amending the
General Plan and General Plan Land Use Map to establish height limits and enact
development standards for residential uses within the Vallco Shopping District
12
Special Area and identifying a recommended location for future residential
development on 13.1 acres of the Special Area
4. Draft Ordinance No. _______, adopting MCA-2019-01, an ordinance eliminating
references in the Municipal Code to the Vallco Town Center Specific Plan and
adding language establishing development standards for a new Mixed Use Planned
Development with Multifamily (R3) Residential and General Commercial zoning
designation (P(R3,CG))
5. Draft Ordinance No. _______, adopting Z-2019-01, an ordinance amending the
zoning map to rezone 13.1 acres within the Vallco Shopping District Special Area to
Mixed Use Planned Development with Multifamily (R3) Residential zoning
P(R3,CG) and General Commercial uses and the remainder of the Special Area to
General Commercial (CG)
6. August 2, 2019 letter from the Department of Housing and Community
Development to the City
7. August 12, 2019 response letter from the City to the Department of Housing and
Community Development
8. Existing General Plan Vallco Shopping District Special Area policies
9. Aerial of Vallco Shopping District Special Area and Assessor Parcel Map
10. Alternative Site Locations for Residential Uses within Vallco Shopping District
Special Area
11. Planning Commission Resolution 6884
12. August 14, 2019 Hausrath Economics Group Memorandum re: Preliminary financial
feasibility assessment of the proposed General Plan Amendment for the Vallco
Shopping District
13. Second Addendum to the 2014 General Plan Amendment, Housing Element
Update, and Associated Rezoning Project Environmental Impact Report (State
Clearinghouse No. 2014032007)
14. Response to Comments on the Second Addendum to the 2014 Certified General Plan
Amendment, Housing Element Update, and Associated Rezoning Draft EIR (SCH#
2014032007)
CITY OF CUPERTINO
10300 Torre Avenue
Cupertino, California 95014
RESOLUTION NO. XXXX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO
ADOPTING A SECOND ADDENDUM TO THE ENVIRONMENTAL IMPACT
REPORT FOR THE 2014 GENERAL PLAN AMENDMENT, HOUSING
ELEMENT UPDATE, AND ASSOCIATED REZONING PROJECT
SECTION I: PROJECT DESCRIPTION
Application No: GPA-2019-01, GPA-2019-02, MCA-2019-01, Z-2019-01
Applicant: City of Cupertino
Location: 10101 to 10333 N Wolfe Rd
APN#s: 316-20-080, 316-20-081, 316-20-088, 316-20-092, 316-20-094, 316-20-095,
316-20-099, 316-20-100, 316-20-101, 316-20-103, 316-20-104, 316-20-105,
316-20-106, 316-20-107
SECTION II: RECITALS
WHEREAS, the City Council is considering General Plan Amendments and associated
Zoning Ordinance Amendments relating to the Vallco Shopping District Special Area;
and
WHEREAS, pursuant to the provisions of the California Environmental Quality Act
Public Resources Code Section 21000 et seq.) (“CEQA”) together with the State CEQA
Guidelines (California Code of Regulations, Title 14, Section 15000 et seq.) (hereinafter,
CEQA Guidelines”), the City prepared a Final Environmental Impact Report (Final
EIR”) for the General Plan Amendment, Housing Element Update, and Associated
Rezoning Project (State Clearinghouse No. 2014032007), which was a program EIR
prepared in compliance with California Environmental Quality Act Guidelines Section
15168; and
WHEREAS, the City Council certified the Final EIR on December 4, 2014 , approved the
General Plan Amendments and Associated Rezoning on December 4, 2014 and December
16, 2014, respectively, approved the Housing Element Update on May 19, 2015, and
approved modifications to the text and figures of the General Plan on October 20, 2015
following adoption of an Addendum (together, the “Project”); and
WHEREAS, since certification of the Final EIR, the City has proposed modifications to
the Project for the Vallco Shopping District Special Area consisting of amendments to the
08/20/19
503 of 598
General Plan to reflect that office uses are not permitted within the Vallco Shopping
District Special Area and remove the associated office development allocation, set height
limits for the area, and make other conforming/clarifying text edits to create density
standards to permit up to 458 units with a minimum density of 29.7 units per acre (389
units) and a maximum density of 35 units per acre on designated parcels totaling 13.1
acres within the Vallco Shopping District Special Area; amendments to the Zoning Map
to rezone the 13.1 acres of Vallco Shopping District Special Area to Mixed Use Planned
Development with Multifamily (R3) Residential and General Commercial zoning
P(R3,CG)) and the remainder of the Special Area to General Commercial; and
amendments to Municipal Code Title 19 to remove references to the former Vallco Town
Center Specific Plan and identify development standards for the new P(R3,CG) zoning
designation in Chapter 19.80; and
WHEREAS, the proposed modifications will not result in any of the conditions requiring
preparation of a subsequent EIR as described in Public Resources Code Section 21166 and
CEQA Guidelines Section 15162; and
WHEREAS, the City has caused to be prepared a Second Addendum to the Final EIR
pursuant to CEQA Guidelines Section 15164; and
WHEREAS, the Second Addendum provides analysis and cites substantial evidence that
supports the conclusion that no subsequent environmental review is required because
there are no substantial changes in the Project or the circumstances under which the
Project is to be undertaken that would result in new or substantially more severe
environmental impacts requiring major revisions to the Final EIR, and there is no new
information that involves new significant environmental effects or a substantial increase
in the severity of previously identified environmental effects that would require
preparation of a subsequent EIR pursuant to Public Resources Code Section 21166 and
CEQA Guidelines Section 15162; and
WHEREAS, following necessary public notices given as required by the procedural
ordinances of the City of Cupertino and the Government Code, the Planning Commission
held a public hearing on July 30, 2019 to consider the Second Addendum and adopted
Resolution No. [###] recommending that the City Council adopt the Second Addendum
to the Final EIR; and
WHEREAS, the City Council of the City of Cupertino is the decision-making body for
this Resolution; and
WHEREAS, prior to taking action on this Resolution, the City Council has exercised its
independent judgment and reviewed and considered the information in the Second
Addendum, which concludes that no further environmental review is required for the
modifications to the Project.
08/20/19
504 of 598
SECTION III: RESOLUTIONS
NOW, THEREFORE, BE IT RESOLVED:
After careful consideration of the, maps, facts, exhibits, testimony and other evidence
submitted in this matter, the City Council hereby takes the following actions:
1. Determines that the Second Addendum reflects the independent judgment of the
City.
2. Adopts the Second Addendum to the Final EIR for the modifications to the Vallco
Shopping District Special Area consisting of amendments to the General Plan,
Zoning Map and Municipal Code Title 19.
NOW, THEREFORE, BE IT FURTHER RESOLVED:
The foregoing recitals are true and correct and are included herein by reference as findings.
PASSED AND ADOPTED this 20th day of August 2019, at a Regular Meeting of the City
Council of the City of Cupertino by the following roll call vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
ATTEST:APPROVED:
Grace Schmidt Steven Scharf
City Clerk Mayor, City of Cupertino
08/20/19
505 of 598
CITY OF CUPERTINO
10300 Torre Avenue
Cupertino, California 95014
RESOLUTION NO. XXXX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO
AMENDING THE GENERAL PLAN TO REMOVE OFFICE AS A PERMITTED
USE FROM THE VALLCO SHOPPING DISTRICT SPECIAL AREA AND
REMOVE ASSOCIATED OFFICE ALLOCATIONS
SECTION I: PROJECT DESCRIPTION
Application No: GPA-2019-01
Applicant: City of Cupertino
Location: 10101 to 10333 N Wolfe Rd
APN#s: 316-20-080, 316-20-081, 316-20-088, 316-20-092, 316-20-094, 316-20-095,
316-20-099, 316-20-100, 316-20-101, 316-20-103, 316-20-104, 316-20-105,
316-20-106, 316-20-107
SECTION II: RECITALS
WHEREAS, Strategy 1 in the Housing Element of the Cupertino General Plan identifies
the Vallco Shopping District Special Area as being appropriate to accommodate at least
389 dwelling units to be developed pursuant to a specific plan for the Special Area; and
WHEREAS, the City Council desires to improve the jobs/housing balance within
Cupertino by decreasing the amount of future office uses the be developed relative to
housing, which will reduce traffic congestion, reduce vehicle miles traveled (VMT), and
contribute to a reduction in greenhouse gas emissions from commuting patterns that
follow unbalanced office development without adequate residential opportunities; and
WHEREAS, this General Plan Amendment to remove office uses as a permitted land use
within the Vallco Shopping District Special Area and remove the associated office
development allocation (the "General Plan Amendment") will allow for planning and
development that is consistent with the community's vision for the Vallco Shopping
District Special Area while the City continues its effort to develop a specific plan for the
Special Area; and
WHEREAS, the City has prepared a Second Addendum (“Second Addendum”) to the
Final Environmental Impact Report (“Final EIR”) for the General Plan Amendment,
Housing Element Update, and Associated Rezoning Project (State Clearinghouse No.
2014032007) for modifications to the General Plan and zoning affecting the Vallco
08/20/19
506 of 598
Shopping District Special Area in compliance with the California Environmental Quality
Act (Public Resources Code Section 21000 et seq.) (“CEQA”) together with the State
CEQA Guidelines (California Code of Regulations, Title 14, Section 15000 et seq.)
hereinafter, “CEQA Guidelines”); and
WHEREAS, following necessary public notices given as required by the procedural
ordinances of the City of Cupertino and the Government Code, the Planning Commission
held a public hearing on July 30, 2019 to consider the General Plan Amendment; and
WHEREAS, on July 30, 2019, by Resolution 6884, the Planning Commission
recommended on a 4-0 vote (Commissioner Moore recused) that the City Council adopt
a General Plan Amendment solely to impose height limitations within the Vallco
Shopping District Special Area subject to certain conditions and recommended that the
City Council adopt the Second Addendum for modifications to the Project (as defined in
Resolution No. [XXXX]) affecting the Vallco Shopping District Special Area; and
WHEREAS, on August 20, 2019, upon due notice, the City Council held a public hearing
to consider the General Plan Amendment; and
WHEREAS, the City Council of the City of Cupertino is the decision-making body for
this Resolution; and
WHEREAS, prior to taking action on this Resolution, the City Council has exercised its
independent judgment and reviewed and considered the information in the Second
Addendum, which concludes that no further environmental review is required for the
modifications to the Project defined in Resolution No. [###].
SECTION III: RESOLUTIONS
NOW, THEREFORE, BE IT RESOLVED:
After careful consideration of the, maps, facts, exhibits, testimony and other evidence
submitted in this matter, the City Council hereby takes the following actions:
1. Adopts the amendments to the General Plan (Application No. GPA-2019-01) as
shown in Exhibit GPA-01A and authorizes the staff to make grammatical,
typographical, numbering, and formatting changes necessary to assist in
production of the final published General Plan.
2. Adopts the amendments to the General Plan Land Use Map as shown in Exhibit
GPA-01B.
NOW, THEREFORE, BE IT FURTHER RESOLVED:
The foregoing recitals are true and correct and are included herein by reference as findings.
08/20/19
507 of 598
NOW, THEREFORE, BE IT FURTHER RESOLVED:
The City Council directs the Director of Community Development to file a Notice of
Determination with the Santa Clara County Recorder in accordance with CEQA and the
CEQA Guidelines.
PASSED AND ADOPTED this 20th day of August 2019, at a Regular Meeting of the City
Council of the City of Cupertino by the following roll call vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
ATTEST:APPROVED:
Grace Schmidt Steven Scharf
City Clerk Mayor, City of Cupertino
08/20/19
508 of 598
Exhibit GPA-01A
Chapter 2, page PA-8
Delete "Office" from legend of Vallco Shopping District Special Area Diagram.]
Chapter 3, Page LU-13
Table LU-1: Citywide Development Allocation Between 2014-2040
Commercial (s.f.)Office (s.f.)Hotel (rooms)Residential (units)
Current
Built
Oct. 7,
2014)
Buildout Available
Current
Built
Oct. 7,
2014)
Buildout Available
Current
Built
Oct. 7,
2014)
Buildout Available
Current
Built
Oct. 7,
2014)
Buildout Available
Vallco
Shopping
District**
1,207,774 1,207,774 --2,000,000 2,000,000 148 339 191 -389 389
Make conforming edits to "Citywide" totals]
Buildout totals for Office and Residential allocation within the Vallco Shopping District are
contingent upon a Specific Plan being adopted for this area by May 31, 2018. If a Specific Plan is
not adopted by that date, City will consider the removal of the Office and Residential allocations
for Vallco Shopping District. See the Housing Element (Chapter 4) for additional information and
requirements within the Vallco Shopping District.
Chapter 3, Pages LU-50 and LU-51
LU-19.1.2: Parcel Assembly.
Parcel assembly and a plan for complete redevelopment of the site is required prior to adding
residential and office uses. Parcelization is highly discouraged in order to preserve the site for
redevelopment in the future.
LU-19.1.4: Land Use.
The following uses are allowed on the site (see Figure LU-2 for residential densities and
criteria):
1. Retail: High-performing retail, restaurant and entertainment uses. Maintain a minimum of
600,000 square feet of retail that provide a good source of sales tax for the City. Entertainment
uses may be included but shall consist of no more than 30 percent of retail uses.
2. Hotel: Encourage a business class hotel with conference center and active uses including
main entrances, lobbies, retail and restaurants on the ground floor.
3. Residential: Allow residential on upper floors with retail and active uses on the ground floor.
Encourage a mix of units for young professionals, couples and/or active seniors who like to live
in an active “town center” environment.
4. Office: Encourage high-quality office space arranged in a pedestrian-oriented street grid with
active uses on the ground floor, publicly-accessible streets and plazas/green space.
08/20/19
509 of 598
Exhibit GPA-01B
City of Cupertino Land Use Map
Designate Vallco Site as Commercial/Residential from Commercial / Office / Residential]
08/20/19
510 of 598
CITY OF CUPERTINO
10300 Torre Avenue
Cupertino, California 95014
RESOLUTION NO. XXXX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO
AMENDING THE GENERAL PLAN AND GENERAL PLAN LAND USE MAP
TO ESTABLISH HEIGHT LIMITS AND ENACT DEVELOPMENT STANDARDS
FOR RESIDENTIAL USES WITHIN THE VALLCO SHOPPING DISTRICT
SPECIAL AREA AND IDENTIFYING A RECOMMENDED LOCATION FOR
FUTURE RESIDENTIAL DEVELOPMENT ON 13.1 ACRES OF THE SPECIAL
AREA
SECTION I: PROJECT DESCRIPTION
Application No: GPA-2019-02
Applicant: City of Cupertino
Location: 10101 to 10333 N Wolfe Rd
APN#s: 316-20-080, 316-20-081, 316-20-088, 316-20-092, 316-20-094, 316-20-095,
316-20-099, 316-20-100, 316-20-101, 316-20-103, 316-20-104, 316-20-105,
316-20-106, 316-20-107
SECTION II: RECITALS
WHEREAS, Strategy 1 in the Housing Element of the Cupertino General Plan identifies
the Vallco Shopping District Special Area as being appropriate to accommodate at least
389 dwelling units at a minimum density of 20 units per acre and a maximum density of
35 units per acre and provides that if a specific plan is not adopted by May 31, 2018, the
City will consider removing the Special Area as a Priority Housing Site; and
WHEREAS, as required by Housing Element Strategy 1, at a study session on June 18,
2019 the City Council considered removing the Vallco Shopping District Special Area as
a Priority Housing Site; and
WHEREAS, after consideration of its options at the June 18, 2019 study session, the City
Council provided direction to staff to retain the Vallco Shopping District Special Area as
a Priority Housing Site, and City Council directed staff to prepare a General Plan
Amendment for its consideration to permit 389 residential units by right within the Vallco
Shopping District Special Area to accommodate the City's Regional Housing Need
Allocation (RHNA) consistent with the Housing Element and with Government Code
Section 65863; and
08/20/19
511 of 598
WHEREAS, the proposed General Plan amendment would establish a minimum density
of 29.7 units per acre and a maximum density of 35 units per acre to permit residential
uses by right on 13.1 acres of the Vallco Shopping District Special Area, which would
accommodate between 389 and 458 residential units, consistent with the Housing
Element's requirements for the Special Area as a Priority Housing Site; and
WHEREAS, the proposed General Plan amendment is not a reduction in density as
defined by Government Code Section 65863 and the City has adequate sites to
accommodate its RHNA, so no additional findings are required to comply with
Government Code Section 65863; and
WHEREAS, this General Plan Amendment establishes height limits and enacts
development standards for residential uses within the Vallco Shopping District Special
Area (the "General Plan Amendment") to ensure that the policies and strategies contained
in the City's Housing Element are implemented and will allow for planning and
development that is consistent with the community's vision for the Vallco Shopping
District Special Area while the City continues its effort to develop a specific plan for the
Special Area; and
WHEREAS, the City has prepared a Second Addendum (“Second Addendum”) to the
Final Environmental Impact Report (“Final EIR”) for the General Plan Amendment,
Housing Element Update, and Associated Rezoning Project (State Clearinghouse No.
2014032007) for modifications to the General Plan and zoning affecting the Vallco
Shopping District Special Area in compliance with the California Environmental Quality
Act (Public Resources Code Section 21000 et seq.) (“CEQA”) together with the State
CEQA Guidelines (California Code of Regulations, Title 14, Section 15000 et seq.)
hereinafter, “CEQA Guidelines”); and
WHEREAS, following necessary public notices given as required by the procedural
ordinances of the City of Cupertino and the Government Code, the Planning Commission
held a public hearing on July 30, 2019 to consider the General Plan Amendment; and
WHEREAS, on July 30, 2019, the Second Addendum was presented to the Planning
Commission; and
WHEREAS, on July 30, 2019, by Resolution 6884, the Planning Commission
recommended on a 4-0 vote (Commissioner Moore recused) that the City Council adopt
a General Plan Amendment solely to impose height limitations within the Vallco
Shopping District Special Area subject to certain conditions and recommended that the
City Council adopt the Second Addendum for modifications to the Project (as defined in
Resolution No. [XXXX]) affecting the Vallco Shopping District Special Area; and
WHEREAS, on August 20, 2019, upon due notice, the City Council held a public hearing
to consider the General Plan Amendment; and
08/20/19
512 of 598
WHEREAS, on August 20, 2019, by Resolution No. [XXXX], the City Council adopted the
Second Addendum to the Final EIR (EA-2013-03); and
WHEREAS, the City Council of the City of Cupertino is the decision-making body for
this Resolution;
WHEREAS, prior to taking action on this Resolution, the City Council has exercised its
independent judgment and reviewed and considered the information in the Second
Addendum, which concludes that no further environmental review is required for the
General Plan amendment to establish height limits and enact development standards for
residential uses in the Vallco Shopping District Special Area.
SECTION III: RESOLUTIONS
NOW, THEREFORE, BE IT RESOLVED:
After careful consideration of the, maps, facts, exhibits, testimony and other evidence
submitted in this matter, the City Council hereby finds that the proposed amendments are
consistent with the City's Comprehensive General Plan (Community Vision 2040),
including the Housing Element. The Housing Element of the General Plan identifies the
Vallco Shopping District Special Area as a "Priority Housing Site," that can accommodate
a portion of its Regional Housing Need Allocation (RHNA) by permitting 389 units "by
right" at a minimum density of 20 units per acre and a maximum density of 35 units per
acre. The amendments define development standards for the Vallco Shopping District
Special Area that will allow residential development by right on 13.1 acres at a minimum
density of 29.7 units per acre maximum density of 35 units per acre, which provides for
development of at least the 389 units called for in the Housing Element. The City Council
determined to retain the Vallco Special Area as a Priority Housing Site, and the proposed
amendments implement Housing Element Strategy 1 and related actions to enable the
development of at least 389 units by right within the Vallco Shopping District Special Area
to meet the City's RHNA, and therefore, they are consistent with the Housing Element.
NOW, THEREFORE, BE IT FURTHER RESOLVED:
After careful consideration of the, maps, facts, exhibits, testimony and other evidence
submitted in this matter, and based on the preceding findings, the City Council hereby
adopts:
1. Amendments to the General Plan (Application No. GPA-2019-02) as shown in
Exhibit GPA-02A and authorizes the staff to make grammatical, typographical,
numbering, and formatting changes necessary to assist in production of the final
published General Plan; and
2. Changes to the Land Use Map as shown in Exhibit GPA-02B.
08/20/19
513 of 598
NOW, THEREFORE, BE IT FURTHER RESOLVED:
The foregoing recitals are true and correct and are included herein by reference as findings.
NOW, THEREFORE, BE IT FURTHER RESOLVED:
The City Council directs the Director of Community Development to file a Notice of
Determination with the Santa Clara County Recorder in accordance with CEQA and the
CEQA Guidelines.
PASSED AND ADOPTED this 20th day of August 2019, at a Regular Meeting of the City
Council of the City of Cupertino by the following roll call vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
ATTEST:APPROVED:
Grace Schmidt Steven Scharf
City Clerk Mayor, City of Cupertino
08/20/19
514 of 598
Exhibit GPA-02A
Chapter 2, page PA-8
CONTEXT
The Vallco Shopping District Special Area encompasses Cupertino’s most significant commercial
center, formerly known as the Vallco Fashion Park. This Special Area is located between
Interstate 280 and Stevens Creek Boulevard in the eastern part of the city. The North Blaney
neighborhood, an established single-family area, is adjacent on the west side of the Vallco
Shopping District. Wolfe Road bisects the area in a north-south direction, and divides Vallco
Shopping District into distinct subareas: Vallco Shopping District Gateway West and Vallco
Shopping District Gateway East. In recent years there has been some façade improvement to
the Vallco Fashion Mall; however, there has been no major reinvestment in the mall for
decades. Reinvestment is needed to upgrade or replace older buildings and make other
improvements so that this commercial center is more competitive and better serves the
community. Currently, the major tenants of the mall include a movie theater, bowling alley and
three national retailers. The Vallco Shopping District is identified as a separate Special Area
given its prominence as a regional commercial destination and its importance to future
planning/redevelopment efforts expected over the life of the General Plan.
VISION
The Vallco Shopping District will continue to function as a major regional and community
destination. The City envisions this area as a new mixed-use “town center” and gateway for
Cupertino. It will include an interconnected street grid network of bicycle and pedestrian-
friendly streets, more pedestrian-oriented buildings with active uses lining Stevens Creek
Boulevard and Wolfe Road, and publicly-accessible grade-level parks and plazas that support
the pedestrian-oriented feel of the revitalized area. New development in the Vallco Shopping
District should be required to provide buffers between adjacent single-family neighborhoods in
the form of boundary walls, setbacks, landscaping or building transitions.
Designate 13.1 acres as new "Regional Shopping/Residential" and designate the bulk of the
sites as new "Regional Shopping" designation within the Vallco Shopping District Special Area
Diagram.]
08/20/19
515 of 598
Chapter 3, Page LU-13
Table LU-1: citywide Development Allocation Between 2014-2040
Commercial (s.f.)Office (s.f.)Hotel (rooms)Residential (units)
Current
Built
Oct. 7,
2014)
Buildout Available
Current
Built
Oct. 7,
2014)
Buildout Available
Current
Built
Oct. 7,
2014)
Buildout Available
Current
Built
Oct. 7,
2014)
Buildout Available
Vallco
Shopping
District**
1,207,774 1,207,774 ----148 339 191 -389 389
Buildout totals for Residential allocation within the Vallco Shopping District are available by-
right as defined in Government Code Section 65863.2.
Chapter 3, Pages LU-16 and 17
Figure LU-2: Community Form Diagram
Vallco Shopping District Special Area
West of Wolfe Rd Regional Shopping /
Residential
Maximum Residential Density
35 units per acre in areas identified in Figure
LU-4
Minimum Residential Density
29.7 units per acre in areas identified in
Figure LU-4
Maximum Height
Per Specific Plan
Up to 60 feet for residential only uses
Up to 75 feet for residential above ground-
floor retail uses
Regional Shopping East of Wolfe Rd
Maximum Residential Density
35 units per acre N/A - residential is not a
permitted use
Maximum Height
Per Specific Plan Up to 60 feet
Show the approximate location for the Regional Shopping / Residential portion of the site, in addition
to a more detailed diagram LU-4.]
Building Planes:
Maintain the primary building bulk below a 1:1 slope line drawn from the arterial/boulevard
curb line or lines except for the Crossroads Area.
For the Crossroads area, see the Crossroads Streetscape Plan.
For projects outside of the Vallco Shopping District Special Area that are adjacent to
residential areas: Heights and setbacks adjacent to residential areas will be determined during
project review.
For projects within the Vallco Shopping District Special Area that are adjacent to the North
Blaney neighborhood: Maintain the primary building bulk below a 1:1 slope line drawn from the
adjacent residential property line.
08/20/19
516 of 598
For the North and South Vallco Park areas (except for the Vallco Shopping District Special
Area): Maintain the primary building bulk below a 1.5:1 (i.e., 1.5 feet of setback for every 1 foot
of building height) slope line drawn from the Stevens Creek Blvd. and Homestead Road curb
lines and below 1:1 slope line drawn from Wolfe Road and Tantau Avenue curb line.
Priority Housing Sites: Notwithstanding the heights and densities shown above, the maximum
heights and densities for Priority Housing Site identified in the adopted Housing Element other
than the Vallco Shopping District Special Area shall be as reflected in the Housing Element. The
Vallco Shopping District Special Area shall be subject to the heights and densities shown above,
with residential uses permitted in the Regional Shopping/Residential designation as shown in
Figure LU-4.
Chapter 3, Page LU-18
4. Uses. Include a substantial viable, retail component. Retail and active uses such as
restaurants, outdoor dining, and entries are required along the ground floor of main street
frontages, and such uses are optional on the ground floor of residential buildings within the
Regional Shopping/Residential designation. Mix of units for young professionals, couples and/or
active seniors who like to live in an active “mixed-use village” environment. Office uses, if
allowed, should provide active uses on the ground floor street frontage, including restaurants,
cafes, entries, lobbies, etc.
Chapter 3, Pages LU-50 and LU-51
VALLCO SHOPPING DISTRICT SPECIAL AREA
The City envisions a complete redevelopment of the existing Vallco Fashion Mall into a vibrant
mixed-use “town center” that is a focal point for regional visitors and the community. This new
Vallco Shopping District will become a destination for shopping, dining and entertainment in
the Santa Clara Valley.
POLICY LU-19.1: ALLOWED LAND USES
The following uses are allowed in the Vallco Shopping District Special Area (see Figure LU-2 for
residential densities and criteria and Figure LU-4 for location of allowable land uses):
1. Residential: Permit residential and ground floor commercial development within the
portion of the site designated for Regional Shopping/Residential uses in advance of
creating a specific plan, at a maximum density of 35 dwelling units per acre and a
minimum density of 29.7 dwelling units per acre by right, with maximum heights as
shown in Figure LU-2. Limited ground floor commercial uses are permitted, but not
required, in connection with residential development. Additional housing may be
08/20/19
517 of 598
considered on the site with the development of a Specific Plan and General Plan
amendment as identified in Policy LU-19.3.
2. Non-Residential: Permit commercial uses consistent with the Regional
Shopping/Residential and Regional Shopping designation. Maintain a minimum of
600,000 square feet of retail that provide a good source of sales tax for the City.
Entertainment uses may be included but shall consist of no more than 30 percent of
retail uses.
POLICY LU-19.2: DEVELOPMENT STANDARDS
New development within the Vallco Shopping District Special Area shall be required to comply
with the following standards:
LU-19.2.1: “Town Center” Layout. (formerly LU-19.1.5)
Create streets and blocks laid out using “transect planning” (appropriate street and building
types for each area), which includes a discernible center and edges, public space at center, high
quality public realm, and land uses appropriate to the street and building typology. Private
streets must be open to the sky. Connections between buildings are permitted at levels above
the third floor for public serving uses or for limited walkways (no wider than 10 feet) which may
be private.
LU-19.2.2: Existing Streets. (formerly LU-19.1.7)
Improve Stevens Creek Boulevard and Wolfe Road to become more bike and pedestrian-
friendly with bike lanes, wide sidewalks, street trees, improved pedestrian intersections to
accommodate the connections to Rosebowl Nineteen800, and Main Street, and the
surrounding areas.
LU-19.2.3: Tribal Coordination.
The City of Cupertino shall coordinate with applicable Native American tribal representatives
following approval of development in the Vallco Shopping District Special Area to ensure
appropriate cultural sensitivity training is provided to all contractors prior to the start of
ground-disturbing activities.
POLICY LU-19.1 LU-19.3: SPECIFIC PLAN
Create a Vallco Shopping District Specific Plan and a related General Plan amendment prior to
any development on the site portion of the site with the Regional Shopping designation , which
shall seek to provide substantial additional housing opportunities at the site, and that lays out
the land uses, design standards and guidelines, and infrastructure improvements required. In
order to allow a vibrant town center development, as part of the Specific Planning process
08/20/19
518 of 598
consider a General Plan amendment that would allow additional housing within the Vallco
Shopping District, especially affordable to low, very low, and extremely low-income households
and housing for persons with special needs, including developmental disabilities. The Specific
Plan will be based on the following strategies:
STRATEGIES:
LU-19.3.1 LU-19.1.1: Master Developer.
Redevelopment of the portion of the site with the Regional Shopping designation pursuant to
the specific plan will require a master developer in order remove the obstacles to the
development of a cohesive district with the highest levels of urban design.
LU-19.3.2 LU-19.1.2: Parcel Assembly.
Parcel assembly and a plan for complete redevelopment of the site is required prior to
designating any additional area for residential uses pursuant to Policy LU-19.3 adding
residential and office uses. Parcelization is highly discouraged in order to preserve the site for
redevelopment in the future.
LU-19.3.3 LU-19.1.3: Complete Redevelopment.
The “town center” plan should be based on complete redevelopment of the site in order to
ensure that the site can be planned to carry out the community vision.
LU-19.1.4: Land Use.
The following uses are allowed on the site (see Figure LU-2 for residential densities and
criteria):
1. Retail: High-performing retail, restaurant and entertainment uses. Maintain a minimum of
600,000 square feet of retail that provide a good source of sales tax for the City. Entertainment
uses may be included but shall consist of no more than 30 percent of retail uses.
2. Hotel: Encourage a business class hotel with conference center and active uses including
main entrances, lobbies, retail and restaurants on the ground floor.
3. Residential: Allow residential on upper floors with retail and active uses on the ground floor.
Encourage a mix of units for young professionals, couples and/or active seniors who like to live
in an active “town center” environment.
LU-19.1.5: “Town Center” Layout. (now LU-19.2.1)
Create streets and blocks laid out using “transect planning” (appropriate street and building
types for each area), which includes a discernible center and edges, public space at center, high
quality public realm, and land uses appropriate to the street and building typology.
08/20/19
519 of 598
LU-19.3.4 LU-19.1.6: Connectivity.
Provide a newly configured complete street grid hierarchy of streets, boulevards and alleys that
is pedestrian-oriented, connects to existing streets, and creates walkable urban blocks for
buildings and open space. It should also incorporate transit facilities, provide connections to
other transit nodes and coordinate with the potential expansion of Wolfe Road bridge over
Interstate 280 to continue the walkable, bikeable boulevard concept along Wolfe Road. The
project should also contribute towards a study and improvements to a potential Interstate 280
trail along the drainage channel south of the freeway and provide pedestrian and bicycle
connections from the project sites to the trail.
LU-19.1.7: Existing Streets. (Now LU-19.2.2)
Improve Stevens Creek Boulevard and Wolfe Road to become more bike and pedestrian-
friendly with bike lanes, wide sidewalks, street trees, improved pedestrian intersections to
accommodate the connections to Rosebowl and Main Street.
Renumber LU-19.1.8 through LU-19.1.14 as LU-19.3.5 through LU-19.3.11.]
Appendix A, page A-6
Regional Shopping: This designation applies to the portions of the Vallco Shopping District
Special Area that do not allow residential uses. This designation allows commercial uses that
include retail sales, businesses, and service establishments with direct contact with customers.
High-performing retail, restaurant and entertainment uses are permitted. Hotel uses are
permitted, and a business class hotel with conference center and active uses including main
entrances, lobbies, retail and restaurants on the ground floor is encouraged.
Regional Shopping / Residential: This designation applies to the portions of the Vallco
Shopping District Special Area that allow residential uses. This designation allows residential
development at a maximum density of 35 dwelling units per acre and a minimum density of
29.7 dwelling units per acre by right. Limited, supporting commercial uses that include retail
sales, businesses, and service establishments with direct contact with customers on the ground
level are permitted but not required. High-performing retail, restaurant and entertainment
uses are permitted. The development may result in structures with up to five levels in
residential only structures or up to six levels in structures that include ground-floor commercial
uses with the heights indicated in Figure LU-1.
08/20/19
520 of 598
Exhibit GPA-02B
City of Cupertino Land Use Map
Designate 13.1 acres of Vallco Site as Regional Shopping / Residential; designate the remainder
of the site as Regional Shopping.]
Edit legend text: Notwithstanding the densities shown above, sites are designated as Priority
Housing Sites in the adopted Housing Element shall have the densities shown in the Housing
Element as further defined in Figure LU-2 in the Land Use Element.]
08/20/19
521 of 598
1
ORDINANCE NO.
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CUPERTINO
ELIMINATING REFERENCES IN THE MUNICIPAL CODE TO THE VALLCO
TOWN CENTER SPECIFIC PLAN AND ADDING LANGUAGE
ESTABLISHING DEVELOPMENT STANDARDS FOR A NEW MIXED USE
PLANNED DEVELOPMENT WITH MULTIFAMILY (R3) RESIDENTIAL AND
GENERAL COMMERCIAL ZONING DESIGNATION (P(R3,CG))
SECTION I: PROJECT DESCRIPTION
Application No: MCA-2019-01
Applicant: City of Cupertino
Location: 10101 to 10333 N Wolfe Rd
APN#s:316-20-080, 316-20-081, 316-20-088, 316-20-092, 316-20-094, 316-20-
095, 316-20-099, 316-20-100, 316-20-101, 316-20-103, 316-20-104, 316-
20-105, 316-20-106, 316-20-107
SECTION II: RECITALS
WHEREAS, Strategy 1 in the Housing Element of the Cupertino General Plan identifies
the Vallco Shopping District Special Area as being appropriate to accommodate at least
389 dwelling units at a minimum density of 20 units per acre and a maximum density of
35 units per acre and provides that if a specific plan is not adopted by May 31, 2018, the
City will consider removing the Special Area as a Priority Housing Site; and
WHEREAS, as required by Housing Element Strategy 1, at a study session on June 18,
2019 the City Council considered removing the Vallco Shopping District Special Area as
a Priority Housing Site; and
WHEREAS, after consideration of its options at the June 18, 2019 study session, the City
Council provided direction to staff to retain the Vallco Shopping District Special Area as
a Priority Housing Site, and City Council directed staff to prepare a General Plan
Amendment for its consideration to permit 389 residential units by right within the Vallco
Shopping District Special Area to accommodate the City's Regional Housing Need
Allocation (RHNA) consistent with the Housing Element and Government Code Section
65863; and
WHEREAS, following a duly noticed public hearing on August 20, 2019, and prior to
the Council’s consideration of the Municipal Code amendments, the Council adopted
Resolution No. _______, approving a General Plan Amendment to remove office uses as
08/20/19
522 of 598
2
a permitted land use within the Vallco Shopping District Special Area and remove the
associated office development allocation, and Resolution No. _______, approving a
General Plan Amendment to establish height limits and enact development standards
for residential uses within the Vallco Shopping District Special Area; and
WHEREAS, the Ordinance amends the City's Municipal Code to add a new zoning
category, Mixed Use Planned Development with Multifamily (R3) Residential and
General Commercial zoning designation (P(R3,CG)), to the text of the Municipal Code
that includes development standards enabling the mixed use or residential-only
development contemplated for the Vallco Shopping District Special Area; and
WHEREAS, the Ordinance is consistent with the City's General Plan and the public
health, safety, convenience, and general welfare, and the amendments herein are
necessary to implement the Housing Element of the General Plan as adopted; and
WHEREAS, the City has prepared a Second Addendum (“Second Addendum”) to the
Final Environmental Impact Report (“Final EIR”) for the General Plan Amendment,
Housing Element Update, and Associated Rezoning Project (State Clearinghouse No.
2014032007) for modifications to the General Plan and zoning affecting the Vallco
Shopping District Special Area in compliance with the California Environmental
Quality Act (Public Resources Code Section 21000 et seq.) (“CEQA”) together with the
State CEQA Guidelines (California Code of Regulations, Title 14, Section 15000 et seq.)
hereinafter, “CEQA Guidelines”); and
WHEREAS, following necessary public notices given as required by the procedural
ordinances of the City of Cupertino and the Government Code, the Planning
Commission held a public hearing on July 30, 2019 to consider the Ordinance; and
WHEREAS, on July 30, 2019, the Second Addendum was presented to the Planning
Commission; and
WHEREAS, on July 30, 2019, by Resolution 6884, the Planning Commission
recommended on a 4-0 vote (Commissioner Moore recused) that the City Council adopt
a General Plan Amendment solely to impose height limitations within the Vallco
Shopping District Special Area subject to certain conditions and recommended that the
City Council adopt the Second Addendum for modifications to the Project (as defined
in Resolution No. [XXXX]) affecting the Vallco Shopping District Special Area; and
WHEREAS, on August 20, 2019 and _______________, upon due notice, the City Council
has held at least two public hearings to consider the Municipal Code Amendment; and
WHEREAS, on August 20, 2019, by Resolution No. [XXXX], the City Council adopted the
Second Addendum to the Final EIR (EA-2013-03); and
08/20/19
523 of 598
3
WHEREAS, the City Council of the City of Cupertino is the decision-making body for
this Ordinance; and
WHEREAS, prior to taking action on this Ordinance, the City Council has exercised its
independent judgment and reviewed and considered the information in the Second
Addendum, which concludes that no further environmental review is required for the
Municipal Code Amendments included in the Ordinance.
SECTION III
NOW, THEREFORE, BE IT ORDAINED:
After careful consideration of the, maps, facts, exhibits, testimony and other evidence
submitted in this matter, the City Council hereby adopts the Municipal Code amendments
based on the findings described above, the public hearing record, subject to the conditions
specified below:
Section 1. The recitals set forth above are true and correct, and are hereby
incorporated herein by this reference as if fully set forth in their entirety.
Section 2. The City Council finds the following as set forth by Municipal Code
19.152.020.C:
1. That the proposed zoning is in accord with Title 19 of the Municipal Code and
the City's Comprehensive General Plan (Community Vision 2040) and the proposed
amendments are internally consistent with Title 19 of the Municipal Code.
The Housing Element of the General Plan calls for the City to permit at least 389 dwelling units
in the Vallco Shopping District Special Area. The General Plan Amendments (adopted at the
August 20, 2019 City Council meeting with Resolution Nos. ______ and ______) modify the
Land Use Element of the General Plan to remove office as a permitted use within the Vallco
Shopping District Special Area and define development standards that will allow residential
development by right on 13.1 acres at a maximum density of 35 dwelling units per acre. The
proposed municipal code amendments would rezone the properties within the Vallco Shopping
District Special Area for consistency with the General Plan, as amended by General Plan
Amendments GPA-2019-01 and GPA-2019-02, and other relevant portions of the Municipal
Code.
2. The proposed zoning is in compliance with the provisions of the California
Environmental Quality Act (CEQA).
The City has prepared a Second Addendum Final EIR for the General Plan Amendment, Housing
Element Update, and Associated Rezoning Project that analyzes the potential environmental
effects of the proposed zoning amendments. The City Council has exercised its independent
judgment and reviewed and considered the information in the Second Addendum, which
08/20/19
524 of 598
4
concludes that no further environmental review is required for the proposed zoning amendments
to comply with CEQA.
3. The site is physically suitable (including, but not limited to, access, provision of
utilities, compatibility with adjoining land uses, and absence of physical constraints) for
the requested zoning designation(s) and anticipated land use development(s).
The sites being rezoned have access to utilities and are compatible with adjoining land uses. To
the extent that there are deficient utilities, the City has adopted mitigation measures to ensure
that any future development would need to provide the appropriate utilities to accommodate
the development. The proposed zoning would implement the Housing Element and the Land
Use Element of the General Plan, as amended by General Plan Amendments GPA-2019-01 and
GPA-2019-02, which include development standards to permit at least 389 residential units and
complementary commercial uses on the site, which are compatible with anticipated land use
development in the area.
4. The proposed zoning will promote orderly development of the City.
The sites being rezoned will promote orderly development in the City by allowing a critical mass
of development to be proposed along the City’s Priority Development Area (PDA) in which
future development is anticipated without exceeding the vision for housing and complementary
commercial development required in the Housing Element and Land Use Element of the General
Plan, as amended by General Plan Amendments GPA-2019-01 and GPA-2019-02.
5. That the proposed zoning is not detrimental to the health, safety, peace, morals
and general welfare of persons residing or working in the neighborhood of subject
parcels.
The proposed zoning is not detrimental to the health, safety, peace, morals and general welfare
since these are conforming changes that are necessary to implement the Housing Element and
Land Use Element of the City's General Plan, as amended by General Plan Amendments GPA-
2019-01 and GPA-2019-02. Additionally, where health or safety impacts have been identified in
the Final EIR, mitigation measures have been identified which would be applicable to any
development on these sites.
Section 3. The City Council approves the Amendments to the Municipal Code
Application No. MCA-2019-01) as shown in Exhibit A and authorizes the staff to make
grammatical, typographical, numbering, and formatting changes necessary to assist in
production of the final published Municipal Code.
Section 4. If any portion of this Ordinance or its application is for any reason
held to be invalid, unenforceable or unconstitutional, by a court of competent
jurisdiction, that portion shall be deemed severable, and such invalidity,
unenforceability or unconstitutionality shall not affect the validity or enforceability of
the remaining portions of the Ordinance, or its application to any other person or
08/20/19
525 of 598
5
circumstance. The City Council hereby declares that it would have adopted each section,
sentence, clause or phrase of this Ordinance, irrespective of the fact that any one or more
other sections, sentences, clauses or phrases of the Ordinance be declared invalid,
unenforceable or unconstitutional.
Section 5. The City Council directs the Director of Community Development
to file a Notice of Determination with the Santa Clara County Recorder in accordance
with CEQA and the CEQA guidelines.
Section 6 This Ordinance shall not take effect unless and until General Plan
Amendment GPA-2019-02 becomes effective.
INTRODUCED this 20th day of August, 2019, at a Regular Meeting of the City Council
of the City of Cupertino and ENACTED at a Regular Meeting of the City Council of the
City of Cupertino by the following roll call vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
ATTEST:APPROVED:
Grace Schmidt Steven Scharf
City Clerk Mayor, City of Cupertino
08/20/19
526 of 598
6
Exhibit A
19.12.030 Approval Authority.
Table 19.12.030 shows the approval authority, Noticing Radius, Expiration Date and
Extension Dates for different types of Permits.
Table 19.12.030 - Approval Authority
Type of
Permit or
Decision A, B
Administrati
ve Review
Design
Review
Commi
ttee
Plannin
g
Commis
sion
City
Coun
cil
Public
Hearing/
Public
Meeting/
Commen
t Period C
Noticing/
Noticing
Radius D
Post
ed
Site
Notic
e
Expirati
on Date
E
Chapter/
Findings
General Plan Amendment
Major F --R F PH Yes -
Minor G --R F PH
CA. Govt.
Code
65350-
65362 Yes -
CA. Govt.
Code
65350-
65362
Zoning Map Amendments
Major F --R F PH Yes -19.152.02
0
Minor G --R F PH
CA. Govt.
Code
65853-
65857 Yes -
Zoning Text
Amendments
R F PH
CA. Govt.
Code
65853-
65857
19.152.03
0
Specific Plans --R F PH
CA. Govt.
Code
65350-
65362
20.04.030
Development
Agreements
R F PH
CA. Govt.
Code
65867
Yes -19.144.12
0
Development Permits
Major F, H --F/R A1/F PM Yes 2 years
Minor G F -A1 A2 PM
19.12.110
300'Yes 2 years
19.156.05
0
Conditional Use Permits
Major F, H, I F -A1/F/R A1/
A2/F PH Yes 2 years
Minor G, I F -A1/F/R A1/ PH
CA. Govt.
Code
65905 Yes 2 years
19.156.05
0
08/20/19
527 of 598
7
A2/F
Temporary F -A1 A2 -None No 1 year
None
19.160.03
0
Density
Bonus
Residential)
R F
Based on
concurren
t
applicatio
n
19.52
Adult-
Oriented
Commercial
Activity (CUP)
R F PH
CA. Govt.
Code
65905/30
0'
Yes 2 years
19.128.03
0 &
19.128.04
0
Architectural and Site Approval
Major J F -A1 A2 PM Yes 2 years
Minor K F -A1 A2 PM
19.12.110
Yes 2 years
19.168.03
0
Amendment
Major F, H --F A1 Varies L Yes 2 years
Minor G F -A1 A2 Varies L
Depends
on permit
being
amended
L
Yes 2 years
19.44,
19.144,
19.156,
19.164
Minor
Modification
F -A1 A2 -None No 2 years 19.164
Hillside
Exception/
Height
Exception/
Heart of the
City Exception
I
F A1 PH 19.12.110
300'Yes 2 years
19.40.080
19.24.070
19.136.09
0
Variance F -A1 A2 PH
CA. Govt.
Code
65905
Yes 2 years 19.156.06
0
Status of non-
conforming
Use
F A1 PH 19.12.110
300'Yes -19.140.11
0
Wireless
Antennas I
F -F/ A1 A2 Varies I
Depends
on
applicatio
n type
Yes 2 years 19.136.09
0
Signs
08/20/19
528 of 598
8
Permits F -A1 A2 -None No 1 year 19.104
Neon, Reader
board &
Freeway
Oriented
Signs I
F F A1 M PM 19.12.110
300'No 1 year 19.104
Programs F -A1 A2 -None No 1 year 19.104
Exceptions I -F -A1 M PM
19.12.110
Adjacent
Yes 1 year 19.104.29
0
Parking
Exceptions I
F F A1 A1 M
A2 Varies N
19.12.110
Adjacent/
300' O
Yes 1 year 19.124.05
0
Fence
Exceptions
F -A1 L PM
19.12.110
Adjacent
Yes 1 year 19.48.060
Front Yard
Interpretation
F -A1 A2 PM
19.12.110
Adjacent
Yes 1 year 19.08
R-1 Ordinance Permits
Two-story I F F F/A1 A1 L
A2 Varies I Yes 1 year 19.28.140
Minor
Residential
F -A1 A2 CP No 1 year
Exceptions I -F -A1 M PM
19.12.110
Adjacent
Yes 1 year
Protected Trees
Tree Removal F -A1 A2 CP
Adjacent
unless
exempt
Yes 1 year 14.18.180
Heritage Tree
Designation &
Removal
F A1 PM
19.12.110
300'
Yes -14.18
Tree
Management
Plan
F -A1 A2 -None No -14.18
Retroactive
Tree Removal
F -A1 A2 -None No -14.18
08/20/19
529 of 598
9
Reasonable
Accommodati
on
F -A1 A2 -None No 1 year 19.52.050
Extensions P
Parking,
Fence & Sign
Exceptions &
Front Yard
Interpretations
F -A1 A2 -None No 1 year
Neon, Reader
board &
Freeway
Oriented
Signs
F A1 A2 -None No 1 year
Two Story
Permits,
Minor
Residential
Permits and
Exceptions
F A1 A2 -None No 1 year
Tree
Removals
F -A1 A2 --No 1 year
All other
projects
F -A1 A2 -
19.12.110
None
No 2 years
For permits within the Vallco Town Center Zone - see Vallco Town Center Specific Plan
KEY:
R—Review and recommendation body F—Final decision-making body unless appealed
A1—Appeal Body on first appeal A2—Appeal body on second appeal
PH—Public Hearing PM—Public Meeting
CP—Comment Period
Notes:
A. Permits can be processed concurrently with other applications, at the discretion of the Director of
Community Development.
B. Projects with combined applications shall be processed at the highest level of approval in
conformance with Section 19.04.090.
C. Public Hearing: Projects types that need noticing pursuant to the CA Government Code; Public
Meeting: Project types that need only a mailed notice and no newspaper notices; Comment Period:
Project types that need only a mailed notice and do not need a public hearing or public meeting.
D. Noticing Radius of an application in a combined application shall correspond to the maximum noticing
radius required for any one of the applications.
E. Expiration date of an application in a combined application shall correspond to the maximum
expiration date allowed for any one of the development applications (not including Subdivision Map Act
applications, General Plan Amendments and Zoning Map or Text Amendments.)
08/20/19
530 of 598
10
F. Major General Plan Amendment, Conditional Use Permit, Development Permit application - for more
than ten thousand square feet of commercial and/or industrial and/or office and/or other non-residential
use, or greater than six residential units.
G. Minor General Plan Amendment, Conditional Use Permit, Development Permit application - for ten
thousand square feet or less of commercial and/or industrial and/or office and/or other non-residential
use, or six or less residential units.
H. City Council review for applications with new development greater than fifty thousand square feet of
commercial, and/or greater than one hundred thousand square feet of industrial and/or office and/or other
non-residential use, and/or greater than fifty residential units.
Planning Commission review for all other applications.
I. Please see specific zoning district regulations or chapters in this title that apply to the subject property
or project for approval authority.
J. Major Architectural and Site Approval application - architectural and site approval for all projects that
are not a Minor Architectural and Site Approval application.
K. Minor Architectural and Site Approval application - single family home in a planned development
zoning district, minor building architectural modifications, landscaping, signs and lighting for new
development, redevelopment or modification in such zones where review is required and minor
modifications of duplex and multi-family buildings.
L. Meeting type and noticing are dependent on the underlying permit being modified.
M. Appeals of Design Review Committee decisions shall be heard by the City Council.
N. Parking Exceptions approved by the Director of Community Development need a comment period.
Parking Exceptions approved by the Design Review Committee need a public meeting.
O. Parking Exceptions in Single-family residential (R1) zones and Duplex (R2) zones need adjacent
noticing.
All other Parking Exceptions need notices within three hundred feet of the exterior boundary of the
subject property.
P. Application must be filed prior to expiration date of permit. Permit is extended until decision of the
Approval Body on the extension.
19.16.010 Zoning Districts Designated.
B. In addition to the zones identified in Table 19.16.010A, the City may establish
separate zoning districts in individual specific plans adopted to promote the orderly
development of the plan area. These zoning districts are identified in Table 19.16.010B
below:
Table 19.16.010B - Specific Plan Districts
Zoning Map Designation Specific Plan Name
Heart of the City Heart of the City
08/20/19
531 of 598
11
VTC Vallco Town Center Vallco Town Center
Land uses and development standards within a specific plan zone shall be as
prescribed in the specific plan.
19.16.030 Zoning Map and District Boundaries.
A. The boundaries of districts established by this title shall be shown upon the zoning
map. The zoning map, and all amendments, changes, and extensions thereof, and all
legends, symbols, notations, references, and other matters shown thereon shall be a
part of this title.
B. The zoning map, as currently effective, and a record of all amendments, changes
and extensions thereof, shall be maintained as a public record in the office of the
Director of Community Development.
C. The boundaries of each district as shown upon the zoning map, or amendments
thereto, are adopted by the ordinance codified in this title, and the specific regulations
established by this title for each general district and all other regulations applicable
therein as set forth in this title are established and declared to be in effect upon all
portions of lands included within the boundaries of each and every district as shown
upon the zoning map.
19.16.060 Application of Regulation to Sites Divided by Zone Boundaries.
Whenever it is found, pursuant to Section 19.28.050, that a lot or site is divided by a
boundary between districts, the provisions of the zoning regulations applicable within
each district shall apply only to each the portion of this site situated in each a separate
district.
19.80.030 Establishment of Districts–Permitted and Conditional Uses and
Development Standards.
A. Planned development zoning districts may be established, modified or removed
from the zoning map, and the regulations applicable to any planned development district
may be established, modified or deleted in accord with the procedures described in this
chapter.
B. All P districts shall be identified on the zoning map with the letter coding "P"
followed by a specific reference to the general type of use allowed in the particular
planning development zoning district. For example, a planned development zoning
district in which the uses are to be general commercial in nature, would be designated
08/20/19
532 of 598
12
P(CG)." A planned development zoning district in which the uses are intended to be a
mix of general commercial and residential would be designated "P(CG/Res)."
C. Permitted uses in a P zoning district shall consist of all uses which are permitted
in the zoning district which constitutes the designation following the letter coding
P." For example, the permitted uses in a P(CG) zoning district are the same uses
which are permitted in a CG zoning district for sties with a mixed-use residential
designation, Section 19.80.030F shall apply.
D. Conditional uses in a P zoning district shall consist of all uses which require the
issuance of a conditional use permit in the zoning district which constitutes the
designation following the letter coding "P." For example, the conditional uses in a
P(CG) zoning district are the same uses which require a conditional use permit in CG
zoning district. Each conditional use in a P zoning district requires a separate
conditional use permit for sites with a mixed-use residential designation,
Section 19.80.030F shall apply.
E. The general category of uses in a P zone shall be defined at the time of the
conceptual plan, and shall be consistent with the adopted General Plan relative to the
property in the application. The development standards and regulations of the
permitted and conditional uses shall be established in conjunction with the approval of
the conceptual and definitive plans, unless specifically identified in Section 19.80.030F
below. Developments which are not subject to discretionary approval by the City must
comply with the development standards of the underlying zoning district.
F. For sites with a mixed-use residential designation the following shall apply:
1. For sites in the Monta Vista Village Special Area, residential shall be a permitted
use.
2. If a site is listed as a Priority Housing Site in the City’s adopted Housing Element
of the General Plan, then residential development that does not exceed the number of
units designated for the site in the Housing Element shall be a permitted use.
3. Residential development on sites not designated as Priority Housing Sites in the
City’s adopted Housing Element of the General Plan and residential development on a
Priority Housing Site that exceeds the number of units designated for that Priority
Housing Site shall be a conditional use.
4. Priority Housing Sites shall be shown on the City’s zoning map.
5. For sites zoned P(R3, CG), multifamily residential use is the primary permitted
use. Commercial uses may be incorporated into the development on the ground
floor but shall not be the primary permitted use.
G. For sites which require a specific plan prior to development approval, the
permitted and conditional uses and all development regulations shall be as shown in the
specific plan.
08/20/19
533 of 598
1
ORDINANCE NO.
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CUPERTINO
AMENDING THE ZONING MAP TO REZONE 13.1 ACRES WITHIN THE
VALLCO SHOPPING DISTRICT SPECIAL AREA TO MIXED USE PLANNED
DEVELOPMENT WITH MULTIFAMILY (R3) RESIDENTIAL ZONING
P(R3,CG) AND GENERAL COMMERCIAL USES AND THE REMAINDER OF
THE SPECIAL AREA TO GENERAL COMMERCIAL (CG)
SECTION I: PROJECT DESCRIPTION
Application No: Z-2019-01
Applicant: City of Cupertino
Location: 10101 to 10333 N Wolfe Rd
APN#s:316-20-080, 316-20-081, 316-20-088, 316-20-092, 316-20-094, 316-20-
095, 316-20-099, 316-20-100, 316-20-101, 316-20-103, 316-20-104, 316-
20-105, 316-20-106, 316-20-107
SECTION II: RECITALS
WHEREAS, Strategy 1 in the Housing Element of the Cupertino General Plan identifies
the Vallco Shopping District Special Area as being appropriate to accommodate at least
389 dwelling units at a minimum density of 20 units per acre and a maximum density of
35 units per acre and provides that if a specific plan is not adopted by May 31, 2018, the
City will consider removing the Special Area as a Priority Housing Site; and
WHEREAS, as required by Housing Element Strategy 1, at a study session on June 18,
2019 the City Council considered removing the Vallco Shopping District Special Area as
a Priority Housing Site; and
WHEREAS, after consideration of its options at the June 18, 2019 study session, the City
Council provided direction to staff to retain the Vallco Shopping District Special Area as
a Priority Housing Site, and City Council directed staff to prepare a General Plan
Amendment for its consideration to permit 389 residential units by right within the Vallco
Shopping District Special Area to accommodate the City's Regional Housing Need
Allocation (RHNA) consistent with the Housing Element and Government Code Section
65863; and
WHEREAS, following a duly noticed public hearing on August 20, 2019, and prior to
the Council’s consideration of the Master Zoning Map amendments, the Council
adopted Resolution No. _______, approving a General Plan Amendment to remove
08/20/19
534 of 598
2
office uses as a permitted land use within the Vallco Shopping District Special Area and
remove the associated office development allocation, and Resolution No. _______,
approving a General Plan Amendment to establish height limits and enact development
standards for residential uses within the Vallco Shopping District Special Area; and
WHEREAS, the Ordinance amends the City's Master Zoning Map apply the new Mixed
Use Planned Development with Multifamily (R3) Residential and General Commercial
zoning designation (P(R3,CG)) created in MCA-2019-01 to the Vallco Shopping District
Special Area; and
WHEREAS, the Ordinance is consistent with the City's General Plan and the public
health, safety, convenience, and general welfare, and the amendments herein are
necessary to implement the Housing Element of the General Plan as adopted; and
WHEREAS, the City has prepared a Second Addendum (“Second Addendum”) to the
Final Environmental Impact Report (“Final EIR”) for the General Plan Amendment,
Housing Element Update, and Associated Rezoning Project (State Clearinghouse No.
2014032007) for modifications to the General Plan and zoning affecting the Vallco
Shopping District Special Area in compliance with the California Environmental
Quality Act (Public Resources Code Section 21000 et seq.) (“CEQA”) together with the
State CEQA Guidelines (California Code of Regulations, Title 14, Section 15000 et seq.)
hereinafter, “CEQA Guidelines”); and
WHEREAS, following necessary public notices given as required by the procedural
ordinances of the City of Cupertino and the Government Code, the Planning
Commission held a public hearing on July 30, 2019 to consider the Ordinance; and
WHEREAS, on July 30, 2019, the Second Addendum was presented to the Planning
Commission; and
WHEREAS, on July 30, 2019, by Resolution 6884, the Planning Commission
recommended on a 4-0 vote (Commissioner Moore recused) that the City Council adopt
a General Plan Amendment solely to impose height limitations within the Vallco
Shopping District Special Area subject to certain conditions and recommended that the
City Council adopt the Second Addendum for modifications to the Project (as defined
in Resolution No. [XXXX]) affecting the Vallco Shopping District Special Area; and
WHEREAS, on August 20, 2019 and _______________, upon due notice, the City Council
has held at least two public hearings to consider the Master Zoning Map Amendment;
and
WHEREAS, on August 20, 2019, by Resolution No. [XXXX], the City Council adopted the
Second Addendum to the Final EIR (EA-2013-03); and
08/20/19
535 of 598
3
WHEREAS, the City Council of the City of Cupertino is the decision-making body for
this Ordinance; and
WHEREAS, prior to taking action on this Ordinance, the City Council has exercised its
independent judgment and reviewed and considered the information in the Second
Addendum, which concludes that no further environmental review is required for the
Master Zoning Map amendments included in the Ordinance.
SECTION III
NOW, THEREFORE, BE IT ORDAINED:
After careful consideration of the, maps, facts, exhibits, testimony and other evidence
submitted in this matter, the City Council hereby adopts the Master Zoning Map
amendments based on the findings described above, the public hearing record, subject to
the conditions specified below:
Section 1. The recitals set forth above are true and correct, and are hereby
incorporated herein by this reference as if fully set forth in their entirety.
Section 2. The City Council finds the following as set forth by Municipal Code
19.152.020.C:
1. That the proposed zoning is in accord with Title 19 of the Municipal Code and
the City's Comprehensive General Plan (Community Vision 2040) and the proposed
amendments are internally consistent with Title 19 of the Municipal Code.
The Housing Element of the General Plan calls for the City to permit at least 389 dwelling units
in the Vallco Shopping District Special Area. The General Plan Amendments (adopted at the
August 20, 2019 City Council meeting with Resolution Nos. ______ and ______) modify the
Land Use Element of the General Plan to remove office as a permitted use within the Vallco
Shopping District Special Area and define development standards that will allow residential
development by right on 13.1 acres at a maximum density of 35 dwelling units per acre. The
proposed municipal code amendments would rezone the properties within the Vallco Shopping
District Special Area for consistency with the General Plan, as amended by General Plan
Amendments GPA-2019-01 and GPA-2019-02, and other relevant portions of the Municipal
Code.
2. The proposed zoning is in compliance with the provisions of the California
Environmental Quality Act (CEQA).
The City has prepared a Second Addendum Final EIR for the General Plan Amendment, Housing
Element Update, and Associated Rezoning Project that analyzes the potential environmental
effects of the proposed zoning amendments. The City Council has exercised its independent
judgment and reviewed and considered the information in the Second Addendum, which
08/20/19
536 of 598
4
concludes that no further environmental review is required for the proposed zoning amendments
to comply with CEQA.
3. The site is physically suitable (including, but not limited to, access, provision of
utilities, compatibility with adjoining land uses, and absence of physical constraints) for
the requested zoning designation(s) and anticipated land use development(s).
The sites being rezoned have access to utilities and are compatible with adjoining land uses. To
the extent that there are deficient utilities, the City has adopted mitigation measures to ensure
that any future development would need to provide the appropriate utilities to accommodate
the development. The proposed zoning would implement the Housing Element and the Land
Use Element of the General Plan, as amended by General Plan Amendments GPA-2019-01 and
GPA-2019-02, which include development standards to permit at least 389 residential units and
complementary commercial uses on the site, which are compatible with anticipated land use
development in the area.
4. The proposed zoning will promote orderly development of the City.
The sites being rezoned will promote orderly development in the City by allowing a critical mass
of development to be proposed along the City’s Priority Development Area (PDA) in which
future development is anticipated without exceeding the vision for housing and complementary
commercial development required in the Housing Element and Land Use Element of the General
Plan, as amended by General Plan Amendments GPA-2019-01 and GPA-2019-02.
5. That the proposed zoning is not detrimental to the health, safety, peace, morals
and general welfare of persons residing or working in the neighborhood of subject
parcels.
The proposed zoning is not detrimental to the health, safety, peace, morals and general welfare
since these are conforming changes that are necessary to implement the Housing Element and
Land Use Element of the City's General Plan, as amended by General Plan Amendments GPA-
2019-01 and GPA-2019-02. Additionally, where health or safety impacts have been identified in
the Final EIR, mitigation measures have been identified which would be applicable to any
development on these sites.
Section 3. The City Council approves amendments to the Master Zoning Map
as shown in Exhibit A.
Section 4. If any portion of this Ordinance or its application is for any reason
held to be invalid, unenforceable or unconstitutional, by a court of competent
jurisdiction, that portion shall be deemed severable, and such invalidity,
unenforceability or unconstitutionality shall not affect the validity or enforceability of
the remaining portions of the Ordinance, or its application to any other person or
circumstance. The City Council hereby declares that it would have adopted each section,
sentence, clause or phrase of this Ordinance, irrespective of the fact that any one or more
08/20/19
537 of 598
5
other sections, sentences, clauses or phrases of the Ordinance be declared invalid,
unenforceable or unconstitutional.
Section 5. The City Council directs the Director of Community Development
to file a Notice of Determination with the Santa Clara County Recorder in accordance
with CEQA and the CEQA guidelines.
Section 6 This Ordinance shall not take effect unless and until General Plan
Amendment GPA-2019-02 becomes effective.
INTRODUCED this 20th day of August, 2019, at a Regular Meeting of the City Council
of the City of Cupertino and ENACTED at a Regular Meeting of the City Council of the
City of Cupertino by the following roll call vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
ATTEST:APPROVED:
Grace Schmidt Steven Scharf
City Clerk Mayor, City of Cupertino
08/20/19
538 of 598
6
Designate 13.1 acres of site as P(R3,CG) and remainder of site as CG.]
1 The zoning on assessors’ parcels in the table below was amended in September 2018 (Ord. Z-2018-2178) in
connection with the City’s approval of the Vallco Specific Plan. The adoption of that Zoning Ordinance has been
challenged and thus the validity of the zoning code amendments therein is uncertain. See, e.g., Midway Orchards
v. County of Butte (1990) 220 Cal.App.3d 765. The table shows the zoning as adopted in September 2018, and the
parcels’ zoning as existing before that date.
APN
Zoning Prior to
Ord. Z-2018-2178
Adoption
Zoning Proposed by
Ord. Z-2018-21781 New Zoning
316-20-080 P(CG)Vallco Town Center CG
316-20-081 P(CG)Vallco Town Center CG
316-20-088 P(Regional
Shopping)
Vallco Town Center [CG or P(R3, CG)]
316-20-092 P(Regional
Shopping)
Vallco Town Center [CG or P(R3, CG)]
316-20-094 P(Regional
Shopping)
Vallco Town Center [CG or P(R3, CG)]
316-20-095 P(Regional
Shopping)
Vallco Town Center [CG or P(R3, CG)]
316-20-099 P(Regional
Shopping)
Vallco Town Center [CG or P(R3, CG)]
316-20-100 P(Regional
Shopping)
Vallco Town Center [CG or P(R3, CG)]
316-20-101 P(Regional
Shopping)
Vallco Town Center [CG or P(R3, CG)]
316-20-104 P(Regional
Shopping)
Vallco Town Center [CG or P(R3, CG)]
316-20-105 P(Regional
Shopping)
Vallco Town Center [CG or P(R3, CG)]
316-20-106 P(Regional
Shopping)
Vallco Town Center [CG or P(R3, CG)]
316-20-107 P(Regional
Shopping)
Vallco Town Center [CG or P(R3, CG)]
08/20/19
539 of 598
STATE OF CALIFORNIA - BUSINESS, CONSUMER SERVICES AND HOUSING AGENCY GAVIN NEWSOM, Governor
DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT
DIVISION OF HOUSING POLICY DEVELOPMENT
2020 W. El Camino Avenue, Suite 500
Sacramento, CA 95833
916) 263-2911 / FAX (916) 263-7453
www.hcd.ca.gov
August 2, 2019
Deborah Feng, City Manager
City of Cupertino
10300 Torre Ave
Cupertino, CA 95014
RE: Implementation of 2015 – 2023 Housing Element of the General Plan
Dear Deborah Feng:
This letter informs the City of Cupertino (City) of a potential violation of state housing
element law through the failure to implement Strategy 1 of the housing element requiring
the sites to accommodate the City’s Regional Housing Need Allocation (RHNA).
In 2017, the Governor signed a Housing Package of 15 bills, the package included
Assembly Bill (AB) 72 (Chapter 370 Statutes of 2017), which expanded and clarified
HCD’s enforcement authority. Accordingly, HCD is reviewing local government’s actions
and inactions, including program actions committed within an adopted housing element, to
determine consistency or inconsistency with state law. If HCD finds that a city’s act or
omission does not substantially comply with state law, housing element compliance may
be revoked, and HCD may notify the Attorney General’s Office that the city is in violation of
state law.
As you are aware, the Department’s May 29, 2015 review found the City’s adopted
element in full compliance with State housing element law (Article 10.6 of the Government
Code). This finding of compliance was based upon the successful implementation of
Strategy 1 of the housing element to accommodate the City’s remaining RHNA for 1,064
units, 356 of which need to accommodate very-low income households and 207 of which
need to accommodate low-income households. Strategy 1 proposed two scenarios to
accomplish this goal. Scenario A (the primary scenario) stated the City would adopt a
specific plan and rezoning for the Vallco Mall site by May 31, 2018 and if this was not
accomplished, the City would proceed with rezoning sites identified under Scenario B. In
September 2018 the City adopted the specific plan under Scenario A. However, on May 7,
2019 the City rescinded that specific plan. To the Department’s knowledge, rezoning
under Scenario B has not commenced.
In September 2018, the City approved the Vallco Town Center project on the Vallco Mall
site for 2,402 units of which 361 are for very low-income households and 840 are for low-
income households. The City made this approval under the State’s Streamlined Ministerial
Approval Provisions (SB 35, Statutes of 2017). The City reported the application and
subsequent approval of the project in the City’s 2018 Annual Report on the housing
element of the general plan, received by the Department on May 3, 2018. The approval of
the Vallco project meets the City’s remaining RHNA obligation as put forth by Strategy 1.
08/20/19
540 of 598
Deborah Feng, City Manager
Page 2
However, court filings in the Superior Court of the State of California indicate the City and
the development proponents of the Vallco project are being challenged by the Friends of
Better Cupertino with the contention that the City did not act in accordance with State law
when approving the project. The City filed a Statement of Non-Opposition on May 24,
2019. If petitioners prevail, and the City fails to implement Scenario A or Scenario B under
Strategy 1 in the housing element, the housing element will no longer demonstrate
adequate sites to accommodate the RHNA. Such failure to act may result in revocation of
the City’s housing element compliance.
In addition, the City should be aware that it has an obligation to implement programs in the
housing element to facilitate development of housing for lower-income households and
special needs households. For example, Strategy 4 obligates the City to provide flexible
development standards and Strategies 11, 12, and 13 provide incentives for the
development of housing. According to the City’s Annual Progress report these strategies
are being used primarily for rehabilitation activities of existing developments rather than
facilitating new development. While rehabilitation and repair of existing affordable housing
is imperative, the City must also look for opportunities to support the development of new
housing within the community.
HCD appreciates the difficulty jurisdictions face in balancing competing interests when
making land use decisions. However, the City also has the responsibility to zone adequate
sites to accommodate housing needs and to ensure that new housing development
opportunities are available to meet the housing needs of all members of the community. If
you have any questions concerning this letter, please contact Melinda Coy, of our staff, at
916) 263-7425.
Sincerely,
Zachary Olmstead
Deputy Director
CC: Steven Scharf, Mayor, City of Cupertino
Benjamin Fu, Interim Director of Community Development, City of Cupertino
08/20/19
541 of 598
August 12, 2019
Zachary Olmstead, Deputy Director
Department of Housing and Community Development
Division of Housing Policy Development
2020 W. El Camino Avenue, Suite 500
Sacramento, CA 95833
Re: Implementation of 2015 – 2023 Housing Element of the General Plan
Dear Mr. Olmstead,
Thank you for your letter, dated August 2, 2019. I was encouraged to read that you
concluded the City of Cupertino is currently compliant with State housing laws. I can
assure you that the City will do all that is necessary to remain in compliance if the City’s
approval of the Vallco SB 35 project is overturned by the court.
Cupertino’s Regional Housing Need Allocation (RHNA) for the current planning
period is 1,064. The City’s Housing Element identifies sites to accommodate 1,400 units
to ensure a reasonable buffer. As your letter notes, the City already approved more
units for lower income households than were allocated under its RHNA, and the City
has approved enough units to exceed its total RHNA nearly three times over. This
includes the Vallco SB 35 project, as well as other projects entitled during the planning
period. The City agrees that with approval of the Vallco project, the City met its
remaining RHNA obligation for the Vallco site as put forth by Strategy 1. Should that
approval be overturned, the City will ensure that adequate zoning is in place to
accommodate its remaining RHNA by income level in compliance with State law. In the
meantime, the City is actively processing and issuing permits for the approved Vallco
SB 35 project.
It should be noted that Cupertino has had a compliant Housing Element for at least the
past three Housing Element cycles with adequate sites to accommodate its RHNA. In
the last two decades, Cupertino has had a 100% approval rate for all housing projects
08/20/19
542 of 598
that have complied with the General Plan and zoning codes. No complying projects
have been denied.
The City would like to continue generating adequate housing to accommodate its
growing population, including its teachers, police officers, fire fighters, baristas,
janitors, and others. Additionally, the City would like to provide opportunities to
accommodate affordable housing for our families, seniors, and disabled. To meet these
aspirations, the City devoted significant resources towards developing lower income
housing in accordance with Housing Element strategies 4, 11, 12, and 13. We appreciate
your acknowledgment of the City’s work in connection with rehabilitation and repair of
existing affordable housing as an important facet of our housing program.
The City is mindful of the need to look for opportunities to support the development of
new housing in the community. To that end, the City used its flexible development
standards program (Strategy 4) to facilitate low income senior housing and has recently
accepted a complete application for the 220-unit Westport project, which makes use of
the City’s density bonus program under Strategy 12.
Perhaps most significantly, the City recently issued final certificates of occupancy for
the Veranda project—which provides 18 extremely-low and very-low income senior
units, as well as a very-low income manager’s unit—on one of the Priority Housing
Sites, exceeding the 11 lower income units that the Housing Element had projected. This
project was developed with a density bonus, CEQA streamlining by using a categorical
exemption, the flexible development standards mentioned above, and unanimous
support from the Planning Commission and City Council.
The Veranda project was the first project in Santa Clara County to utilize 2016 Measure
A - Affordable Housing Bond funds with a $1 million contribution, which resulted in
six units of permanent supportive housing reserved for homeless seniors with disabling
conditions. Consistent with Housing Element strategies 11 and 13, the City contributed
approximately 43% of the total development costs for a total of $5,172,000. The City
initially paid $3 million for site acquisition and contributed $1 million through the
Housing Trust Silicon Valley. Subsequently, the City paid $672,000, when the project
was not able to acquire adequate funding, and $500,000 in HOME Investment
Partnerships Program (HOME) funds, when project labor costs escalated. The
continued contributions to this project reaffirm the Council’s commitment towards
ensuring production of affordable housing.
City staff continues to reach out to housing developers and nonprofits to provide
technical support and information about potential funding sources when property with
potential to be developed with housing comes up for sale. Housing developers and
08/20/19
543 of 598
nonprofits continue to provide feedback that land costs are the biggest barrier in the
development of affordable housing in Cupertino. While the Veranda project is a
wonderful success story, it clearly illustrates the high amount of public subsidy, not
including grant and tax credit funding available, needed to develop affordable housing
in a community with high land costs.
The City Council included several housing related projects as priority items on the
City’s Fiscal Year 2019-2020 Work Program. This includes a Housing Strategies project
with the objective to explore the development of strategies that provide a variety of
products across the affordability levels including housing for the developmentally
disabled, as well as homes affordable to moderate, low, very-low, and extremely-low
income households. The goal is to review and adopt effective strategies and tools for the
development of affordable housing across all income levels and developmental abilities.
In addition, the Council is reevaluating the City’s Below Market Rate Linkage Fees with
a focus on maximizing affordable housing production while studying the feasibility of
increasing the inclusionary housing requirements for future developments. This would
help ensure that housing development at all income levels continues to be feasible in
the City. The Work Program also includes developing options to stimulate the
Accessory Dwelling Unit production as a source of affordable housing and studying the
feasibility of building affordable extremely-low income developmentally disabled
housing on a City-owned site.
We appreciate this opportunity to communicate with you. As you are aware, all local
governments face the challenge of balancing competing interests when making land use
decisions. The City is dedicated to finding this balance to provide housing solutions for
all members of its community. We look forward to working with HCD as we make
progress towards implementing the programs identified in our latest Housing Element.
If you have any further questions or comments, please feel free to contact me directly at
408) 777-3212 or DebF@cupertino.org.
Sincerely,
Deborah L. Feng
City Manager
CC: Steven Scharf, Mayor, City of Cupertino
Benjamin Fu, Director of Community Development, City of Cupertino
08/20/19
544 of 598
CHAPTER 3: LAND USE AND COMMUNITY DESIGN ELEMENT | general plan (community vision 2015 - 2040)
POLICY LU-1.4: PARCEL ASSEMBLY
ODPVSBHF QBSDFM BTTFNCMZ BOE
discourage parcelization to ensure
UIBU JOMM EFWFMPQNFOU NFFUT JUZ TUBOEBSET
BOE QSPWJEFT BEFRVBUF CVFST
UP OFJHICPSIPPET POLICY LU-
1.5: COMMUNITY HEALTH THROUGH LAND
USE Promote community
health through land use
and design.POLICY LU-
1.6: JOBS/HOUSING BALANCE 4USJWF
GPS
B NPSF CBMBODFE SBUJP PG KPCT BOE
IPVTJOH VOJUT Table LU-
1: Citywide Development Allocation Between 2014-2040 commercial (s.
f.)PDF T G hotel (rooms) residential (units)current built
Oct
7,
2014)buildout available
current built
Oct
7,
2014)buildout available
current built
Oct
7,
2014)buildout available
current built
Oct
7,
2014)buildout available
Heart of
the City
1,351,730 214,5000 793,270 2,447,500 2,464,613 17,113 404 526 122 1,336 1,805 469 Vallco Shopping
District**
1,
207,
774 120,7774 - - 2,000,000 2,000,000 148 339 191 - 389 389 Homestead 291,
408 291,408 - 69,550 69,550 - 126 126 - 600 750 150 N. De
Anza 56,708 56,708 - 2,081,021 2,081,021 - 126 126 - 49 146 97 N. Vallco
133,147 133,147 - 3,069,676 3,069,676 - 123 123 - 554 1154 600 S. De
Anza 352,283 352,283 - 130,708 130,708 - 315 315 - 6 6 -Bubb - - -444,
753 444,753 - - - - - - -Monta Vista
Village 94,
051 99,698 5,647 443,140 456,735 13,595 - - - 828 878 50 Other 144,
964 144964, - 119,896 119,896 - - - - 18,039 18,166 127 Major Employers - - -
109,
935 633,053 523,118 - - - - - -Citywide 3,
632,065 4,430,982 798,917 8,916,179 11,470,005 2,553826, 1116 1429 313 21,412 23,294 1,882 VJMEPVU UPUBMT
GPS 0GGJDF BOE 3FTJEFOUJBM BMMPDBUJPO XJUIJO UIF 7BMMDP 4IPQQJOH JTUSJDU BSF DPOUJOHFOU VQPO B 4QFDJGJD 1MBO CFJOH BEPQUFE GPS UIJT BSFB CZ BZ G B 4QFDJGJD 1MBO JT OPU BEPQUFE
CZ UIBU EBUF JUZ XJMM DPOTJEFS UIF SFNPWBM PG UIF 0GGJDF BOE 3FTJEFOUJBM BMMPDBUJPOT GPS 7BMMDP 4IPQQJOH JTUSJDU 4FF UIF PVTJOH MFNFOU IBQUFS GPS BEEJUJPOBM JOGPSNBUJPO BOE SFRVJSFNFOUT
XJUIJO UIF 7BMMDP 4IPQQJOH JTUSJDU LU-13
08/20/
19 545 of
598
Hillsid
e
idedeid
e
ntiotioooononononononioiooottitisitsitititsitsit
Tra
nsssisiitisitiiiononnoioitio
280
280
280
85
85
SARATOGA
SUNNYVALE
SANTA CLARA
STEVENS CREEKBLVDWOLFE
RD DE
ANZA BLVDDE ANZA
BLVDHOMESTEAD RD Homestead
Special Area Maximum Residential Density As indicated in the
General Plan Land Use Map;15 units per
acre for
Neighborhood Commercial
Sites Maximum Height
30 feet Homestead Special Area
North Vallco Park
Special Area Maximum Residential Density Up to 35 units per acre per
General Plan Land Use Map 15 units per acre (
southeast corner of
Homestead Road
and Blaney Avenue)Maximum Height 30 feet, or 45 feet (south side
between De Anza
and Stelling)Maximum Residential
Density 25
units per
acre Maximum Height
60 feet Maximum Residential
Density 25
units per
acre Maximum Height
45 feet Maximum Residential Density 25 (north of Bollinger) or 5-15 (south
of 85)
units per
acre Maximum Height 30 feet
Monta Vista Village
Special Area Maximum Residential
Density 20
units per
acre Maximum Height 45
feet West of
Wolfe Rd Maximum Residential
Density 35
units per acre Maximum
Height 1FS 4QFDJD 1MBO
East of Wolfe
Rd Maximum Residential Density
35 units
per acre Maximum Height
1FS 4QFDJD 1MBO
Maximum Residential Density 25 or 35 (South Vallco)
units per
acre Maximum Height 45 feet, or 30 feet where designated
by hatched line
Maximum Residential Density Up to 15 units per acre per General Plan
Land Use
Map Maximum Height Up
to 30 feet Heart of the
City Special Area North De
Anza Special Area South De
Anza Special Area Monta Vista
Village Special Area Bubb
Road Special Area Vallco Shopping
District
Special Area Neighborhoods North
De Anza Gateway
Maximum Residential Density 35
units per
acre Maximum
Height 45
feet Stelling Gateway West
of Stelling Road:
Maximum Residential Density 15 units
per acre (southwest corner
of Homestead and Stelling Roads)
35 units per acre (
northwest corner of I-280
and Stelling
Road)Maximum
Height 30 feet East
of Stelling Road:
Maximum Residential Density 35
units per
acre Maximum
Height 45
feet Oaks Gateway
Maximum Residential Density 25
units per
acre Maximum
Height 45 feet
North Crossroads Node
Maximum Residential Density 25
units per
acre Maximum
Height 45 feet
South Vallco Park
Maximum Residential Density 35
units per
acre Maximum Height 45 feet, or 60
feet with retail
North Vallco Gateway West
of Wolfe Road:
Maximum Residential Density 25
units per
acre Maximum
Height 60 feet East
of Wolfe Road:
Maximum Residential Density 25
units per
acre Maximum Height 75 feet (buildings located
within 50 feet of the property
lines abutting Wolfe Road, Pruneridge
Avenue and Apple Campus 2 site shall not
exceed 60 feet)
City Center Node
Maximum Residential Density 25
units per
acre Maximum Height 45 feet or as existing,
for existing
buildings Building Planes:Maintain the primary building bulk below a 1:1 slope line drawn from the arterial/boulevard curb line or lines except for
the Crossroads Area.For the Crossroads area, see the
Crossroads Streetscape Plan.For projects adjacent to residential areas: Heights and setbacks adjacent to residential areas will be determined
during project review.For the North and South Vallco Park areas (except for the Vallco Shopping District Special Area): Maintain the primary building bulk below a 1.5:1 (i.e., 1.5 feet of setback for every
1 foot of building height) slope line drawn from the Stevens Creek Blvd. and Homestead Road curb lines and below 1:1 slope line drawn from Wolfe Road and Tantau
Avenue curb line.Rooftop Mechanical Equipment: Rooftop mechanical equipment and utility structures may exceed stipulated height limitations
if they are enclosed, centrally located on the roof and not visible
from adjacent streets.Priority Housing Sites: Notwithstanding the heights and densities shown above, the maximum heights and densities for
Priority Housing Sites identified in the adopted Housing Element shall be as reflected in
the
Housing Element.
Legend City
Boundary
Special Areas Homestead
North Vallco Park
Vallco Shopping District
North De Anza
South De
Anza Bubb Road
Monta Vista Village
Avenues (Major
Collectors)Boulevards (
Arterials)Key
Intersections Neighborhood Centers Heart of the
City Hillside Transition
Urban Service Area 4QIFSF
PG OVFODF
Urban Transition Avenues (
Minor
Collectors)
Neighborhoods Neighborhoods Figure
LU-2 COMMUNITY
FORM DIAGRAM 08/
20/19 546
Stevens CreekBlvdN
WolfeRdDrak e Ct
Portal Plz
RosemariePlBecker LnBeekman
Pl Mclaren
PlHeron Ave
Parkview Ct
Shetland Pl
RichwoodCtPortalPlz
LinnetLnRos ewood
RdBaywood DrSorenson
AveDeodara DrBixby Dr Craft DrFinch AveSPortalAveE Estates DrAmherst Dr
Auburn Dr
Rich
wo
o d
DrWheaton
Dr
Norwich
AveDr a
k
e D
r Merritt
Dr
Vallco PkwyDenison AveColby AveNPortalAvePerimeter RdSUNNYVALE PortalPark Cupertino HS CollinsESVallcoProperty
0
500250
Feet
Document
Path: R:\
ArcView_ProjectFiles\
Planning\072419_VallcoMap\
08/20/19
548 of 598
Potential Location A: West of Wolfe Road and North of Vallco Parkway
8.9 ac.
N. Wolfe
Road
Vallco Pkwy N
4.2 ac.
Stevens Creek Blvd
08/20/19
Potential Location B: West of Wolfe Road at the Terminus of Vallco
Parkway
N. Wolfe
Road
Vallco Pkwy N
13.1 ac.
Stevens Creek Blvd
08/20/19
Potential Location C: West of Wolfe Road between Vallco Parkway and
Stevens Creek Boulevard
N. Wolfe
Road
Vallco Pkwy N
13.1 ac.
Stevens Creek Blvd
08/20/19
Potential Location D: East of Wolfe Road and North of Vallco Parkway
N. Wolfe
Road
Vallco Pkway N
13.1 ac.
Stevens Creek Blvd
08/20/19
CITY OF CUPERTINO
10300 Torre Avenue
Cupertino, California 95014
RESOLUTION 6884
A RESOLUTION OF THE PLANNING COMMISSION
OF THE CITY OF CUPERTINO RECOMMENDING THAT THE CITY
COUNCIL ADOPT A RESOLUTION ADOPTING A SECOND ADDENDUM TO
THE 2014 GENERAL PLAN AMENDMENT, HOUSING ELEMENT UPDATE,
AND ASSOCIATED REZONING PROJECT ENVIRONMENTAL IMPACT
REPORT AND AMENDING THE GENERAL PLAN TO ESTABLISH HEIGHT
LIMITS WITHIN THE VALLCO SHOPPING DISTRICT SPECIAL AREA
WHEREAS, at a duly noticed public hearing held on July 30, 2019, the Planning
Commission of the City of Cupertino considered proposed amendments to the City's
General Plan, including the establishment of height limits for residential uses within the
Vallco Shopping District Special Area; and
WHEREAS, pursuant to the provisions of the California Environmental Quality Act
Public Resources Code Section 21000 et seq.) (“CEQA”) together with the State CEQA
Guidelines (California Code of Regulations, Title 14, Section 15000 et seq.) (hereinafter,
CEQA Guidelines”), the City prepared a Final Environmental Impact Report (Final
EIR”) for the General Plan Amendment, Housing Element Update, and Associated
Rezoning Project (State Clearinghouse No. 2014032007), which was a program EIR
prepared in compliance with California Environmental Quality Act Guidelines Section
15168; and
WHEREAS, the City Council certified the Final EIR on December 4, 2014 , approved the
General Plan Amendments and Associated Rezoning on December 4, 2014 and December
16, 2014, respectively, approved the Housing Element Update on May 19, 2015, and
approved modifications to the text and figures of the General Plan on October 20, 2015
following adoption of an Addendum (together, the “Project”); and
WHEREAS, since certification of the Final EIR, the City has proposed modifications to
the Project for the Vallco Shopping District Special Area; and
WHEREAS, the proposed modifications will not result in any of the conditions requiring
preparation of a subsequent EIR as described in Public Resources Code Section 21166 and
CEQA Guidelines Section 15162;
WHEREAS, the City has prepared a Second Addendum (“Second Addendum”) to the
Final EIR pursuant to CEQA Guidelines Section 15164; and
08/20/19
553 of 598
WHEREAS, the Second Addendum provides analysis and cites substantial evidence that
supports the conclusion that no subsequent environmental review is required because
there are no substantial changes in the Project or the circumstances under which the
Project is to be undertaken that would result in new or substantially more severe
environmental impacts requiring major revisions to the Final EIR, and there is no new
information that involves new significant environmental effects or a substantial increase
in the severity of previously identified environmental effects that would require
preparation of a subsequent EIR pursuant to Public Resources Code Section 21166 and
CEQA Guidelines Section 15162; and
WHEREAS, the Planning Commission has duly considered all evidence, including
testimony and the evaluation and recommendations by staff, presented at said hearing.
NOW, THEREFORE, BE IT RESOLVED:
1. The Planning Commission recommends that the City Council determine that the
Second Addendum reflects the independent judgment of the City.
2. The Planning Commission recommends that the City Council adopt the Second
Addendum for modifications to the Project affecting the Vallco Shopping District Special
Area.
3. The Planning Commission recommends that the City Council adopt a proposed
General Plan Amendment solely to establish a height limit of 60 feet for residential use
only, and 75 feet for residential use above commercial, within the Vallco Shopping
District Special Area; subject to economic analysis of the feasibility of development
consistent with those general plan amendments; and subject to additional public
engagement.
PASSED AND ADOPTED this 30th day of July, 2019, at a Special Meeting of the Planning
Commission of the City of Cupertino, State of California, by the following roll call vote:
AYES: COMMISSIONERS: WANG, SAXENA, TAKAHASHI, FUNG
NOES: COMMISSIONERS:
ABSTAIN: COMMISSIONERS:
ABSENT: COMMISSIONERS: MOORE
ATTEST: APPROVED:
s/Benjamin Fu /s/R Wang
Benjamin Fu, Director R Wang, Chair
Community Development Planning Commission
08/20/19
554 of 598
1212 BROADWAY, SUITE 1500, OAKLAND, CA 94612-1817
T: 510.839.8383 F: 510.839.8415
MEMORANDUM
Date: August 14, 2019
To: Benjamin Fu, Director of Community Development, City of Cupertino
From: Sally Nielsen
Subject: Preliminary financial feasibility assessment of the proposed General
Plan Amendment for the Vallco Shopping District
Hausrath Economics Group (HEG) has been asked to evaluate the financial feasibility of a development
scenario that would be allowed under the proposed General Plan Amendment (GPA) for the Vallco
Shopping District. Specifically, the analysis focuses on the feasibility of development allowed under the
proposed Regional Shopping/Residential land use designation; a land use mix and development program
for the proposed Regional Shopping land use designation that would cover the rest of the plan area
remains to be determined under a future specific plan. The following analysis does not evaluate any uses
on this remainder area.
The Regional Shopping/Residential designation would accommodate the General Plan and Housing
Element residential allocation for the Vallco Shopping District at a maximum density of 35 dwelling units
per acre. Retail use, such as ground floor retail beneath residential use, would be allowed but would not
be required. City of Cupertino Planning staff determined that 13.1 acres designated Regional
Shopping/Residential would be consistent with State Department of Housing and Community
Development and City of Cupertino Housing Element development efficiency assumptions. To achieve
the target residential allocation of 389 dwelling units, the City needs to allow a total of 459 dwelling units
on 13.1 acres.1
The following financial feasibility analysis is suitable for general plan-level decision-making. It is based
on feasibility metrics for market values and development costs generated over the multi-year planning
1 City of Cupertino, Planning Commission Staff Report, Meeting Date: July 30, 2019. The Housing
Element assumes Priority Housing Sites yield 85% of the maximum unit count. Therefore enough acres need to be
designated to accommodate 459 units (at 35 units per acre) in order to ensure that at least 389 units would be
developed.
08/20/19
555 of 598
Benjamin Fu, Director of Community Development, City of Cupertino
Preliminary Financial Feasibility Assessment – General Plan Amendment for the Vallco Shopping District
August 14, 2019
page 2
process for the Vallco Town Center Specific Plan. HEG did not undertake any new market or feasibility
assessment for this assignment.
Assumptions for preliminary financial feasibility analysis
HEG reviewed the real estate market assessment and financial feasibility assessment prepared by
Economic & Planning Systems (EPS) in 2018 for the Vallco Town Center Specific Plan.2 The
assumptions used in the feasibility assessment are informed by the real estate market assessment and by
reasonable estimates of lease rates, sale values, development costs, operating costs, and permits and fees.
The approach to evaluating feasibility is reasonable and appropriate for a planning-level evaluation of
development alternatives. The assumptions for capitalization rates, development contingency, financing,
and developer return on investment are appropriate for a project of this scale and complexity.
The following preliminary feasibility analysis of a GPA development scenario is based on residual land
values by land use derived from the September 11, 2018 EPS analysis of the Tier 1 development program.
The evaluation also relies on site costs, park land requirements and costs, and land cost basis estimates
presented in the EPS memorandum.
Preliminary conclusions about the feasibility of development under the proposed General
Plan Amendment Regional Shopping/Residential land use designation
The development program evaluated consists of 459 residential units on 13.1 acres. There would be 390
market rate units. To satisfy City of Cupertino BMR requirements, 15% of the units (69 units) would be
affordable to moderate income households. (15% of 459 = 68.85 units. Rounded up to 69 units.) The
development scenario also includes some traditional retail development (shops, restaurants, coffee shops)
as would be expected to fill in ground floor spaces under the residential units. 3 No entertainment retail
development or hotel development is assumed.
A program of 100% condominium residential development with ground floor retail generates a positive
residual land value considering only market values and building development costs (see Table 1). For
condominium units, the EPS analysis indicates that both market rate and BMR units generate a positive
residual land value per unit. For this development program, the residual value totals $148 million. No
impact fee credits are assumed in this analysis.
Site costs and land costs reduce this residual value. Site cost estimates for demolition, basic site work, and
right of way and back bone infrastructure improvements are based on the total costs estimated for the
Vallco Town Center Specific Plan, pro-rated based on the relative size (in acres) of the development area.
2 Economic & Planning Systems, Vallco Special Area Real Estate Market Assessment, prepared for the City
of Cupertino, May 14, 2018 and “Financial Feasibility Assessment of Vallco Specific Plan”, memorandum to
Catarina Kidd, City of Cupertino, September 11, 2018.
3 The proposed General Plan Amendment does not require retail development under this land use
designation. Some development is allocated to this use on the assumption that uses to activate the ground floor
would be desirable.
08/20/19
556 of 598
Benjamin Fu, Director of Community Development, City of Cupertino
Preliminary Financial Feasibility Assessment – General Plan Amendment for the Vallco Shopping District
August 14, 2019
page 3
The 13.1-acre GPA Regional Shopping/Residential area represents 26% of the 50.82-acre area evaluated
in the Tier 1 / Tier 2 feasibility analysis. The same percentage factor is used to adjust the land cost basis.
Consistent with the approach in the EPS September 11, 2018 feasibility analysis for the Vallco Town
Center Specific Plan, park land in-lieu fees are calculated based on the 390 market-rate residential units
assumed for the GPA Regional Shopping/Residential designation. No impact fee credits are assumed.
As indicated in Table 1, adjusted site costs (including developer return on investment) total $54 million.
At $21 million, park land in-lieu fees are 40% of total site costs.4 The adjusted land cost basis is $93
million. The estimated project residual (residual value minus site costs and land costs) is positive at about
1 million.
Comparison to preliminary feasibility impact prepared by The Concord Group, July 29,
2019
The Concord Group (TCG) prepared a preliminary assessment of the feasibility of the proposed GPA,
using the same assumptions and valuation conclusions from the EPS September 11, 2018 memorandum.
The TCG analysis concluded that the proposed GPA would be “clearly infeasible”.
There are a number of reasons for the difference between the TCG conclusion and the HEG analysis
presented above. First, the TCG analysis assumes that condominium development would not be
permitted; all of the residential units are assumed to be apartments, generating substantially lower residual
values per unit. The proposed GPA does not require residential rental development. HEG assumes that the
residential development would be condominiums. Second, the TCG development analysis includes all of
the retail and hotel development proposed for the Tier 1 program (consisting in total of a wide range of
development over 50.82 acres). These commercial uses in total contribute negative residual value to the
site. The HEG analysis assumes a modest amount of ground floor retail consistent with the limited
development program for this component of the total plan area. Third, the TCG analysis assigns all of the
site development costs and land costs associated with developing 50.82 acres to a development program
that applies to only 13.1 acres. Finally, there is an error in the TCG calculation of “Residual Value Before
Site Costs / Fee Credits”. The project is not “underwater…in negative territory at $17 million.” In fact,
the residential rental scenario combined with the negative residual value associated with retail and hotel
uses generates positive residual value before site costs on the order of $16.3 million.
4 Park land requirements could also be satisfied by dedicating improved open space and plazas on-site to
public use. This would reduce project development costs.
08/20/19
557 of 598
Feasibility Analysis - 8/14/2019
Table 1
Project Factors
Development
Program
Residual Land
Value Per Unit or
Per Square Foot2 Total Value
Apartment Units
Market Rate - $197,167 $0
BMR Apartment - ($322,732)$0
Condominium Units
Market Rate 390 $356,834 $139,165,260
BMR Condominium 69 $117,984 8,140,896
Total Residential Units/Value 459 $147,306,156
Office Square Feet
Traditional Office - $162
Retail Square Feet3
Traditional 25,000 $22 $550,000
Entertainment - ($365)$0
Combined Retail/Entertainment 25,000 $550,000
Hotel Square Feet - ($37)
Total Commercial Space/Value 25,000 $550,000
Residual Value before Site Costs $147,856,156
Impact Fee Credits - none assumed
Site Costs3
Demolition ($4,600,000)
Basic Site Work ($6,600,000)
Open Space Improvements $0
Park land in lieu fee5 ($21,060,000)
Right of Way and Back Bone Infrastructure ($12,900,000)
Additional Off-Site Improvements/Mitigation $0
45,160,000)
Site Development Financing Cost 6%($2,709,600)
Developer Return on Site Costs 12%($5,744,352)
Financing Costs and Developer Return on Site Costs ($8,453,952)
Total Site Costs including ROI ($53,613,952)
Approximate Land Cost Basis (includes 12% ROI)6 ($93,184,000)
Estimated Project Residual $1,058,204
Notes:
Source: Hausrath Economics Group
2. Residual values before site costs and land costs from Economic & Planning Systems, "Financial Feasibility Assessment of the
Vallco Specific Plan", Memorandum to Catarina Kidd, City of Cupertino, September 11, 2018.
4. Total costs for demolition, basic site work, and right of way and backbone infrastructure from EPS September 11, 2018
memorandum, adjusted because only 26% of the plan area is developed under this land use designation.
6. Total land cost basis from EPS September 11, 2018 memorandum, adjusted because only 26% of the plan area is developed
under this land use designation.
5. Park land in-lieu fee calculated based assumptions in the EPS September 11, 2018 memorandum. 390 market rate units require
2.11 acres of park land. The cost of the in-lieu fee is assumed at $10 million per park acre. Improved parks and open space could
also be provided on site, at a lower cost to the project.
Vallco Special District - Financial Feasbility of GPA Development Scenario for Regional
Shopping/Residential Land Use Designation
1. The Regional Shopping/Residential land use designation applies to 13.1 acres within the Vallco Shopping District. This site area
represents 26% of the 50.82 acres owned by Vallco Property Company that was the subject of the 2018 planning effort and
feasibility assessment used for some of the assumptions below.
The 13.1 acre site area is 26% of the 50.82 acre planning area, resulting in a 26% cost adjustment factor.1
3. Retail development is not required under the proposed Regional Shopping/Residential land use designation. Retail shops,
restaurants, coffee shops and similar uses might be developed to activate the ground floor of the residential development.
08/20/19
558 of 598
Second Addendum to the 2014
Certified General Plan Amendment,
Housing Element Update, and
Associated Rezoning Draft EIR
State Clearinghouse No. 2014032007
Prepared by the City of Cupertino
In Consultation with
July 24, 2019
08/20/19
559 of 598
1
Second Addendum to the 2014 Certified General Plan Amendment, Housing Element Update, and Associated Rezoning Final EIR
City of Cupertino, July 24, 2019
SECTION 1.0 INTRODUCTION AND PURPOSE
This Addendum to the Final Environmental Impact Report (“Final EIR”) for the City of Cupertino
General Plan Amendment, Housing Element Update and Associated Rezoning (the “Final EIR
project”) (State Clearinghouse Number 2014032007) addresses proposed modifications to the
General Plan land use designations in Cupertino Community Vision 2015-2040 (“General Plan”) and
the zoning for the Vallco Shopping District. The City of Cupertino certified the Final EIR in
December 2014, adopted the General Plan in December 2014 with subsequent minor edits adopted in
October 2015, and adopted the Housing Element in March 2015. The Final EIR analyzed land use
alternatives that included citywide development allocations (as well as building heights and
densities) for five Special Areas, seven Study Areas, and other Special Areas.
The purpose of this Addendum is to evaluate whether the proposed modifications to the development
allowed in Final EIR Study Area 6 (Vallco Shopping District 1), which are described in Section 3.0
Proposed Modifications to the Final EIR Project below, will require major revisions to the Final EIR
due to new significant impacts or a substantial increase in the severity of significant impacts
previously identified in the Final EIR. This Addendum has been prepared by the City of Cupertino as
the Lead Agency, in conformance with the California Environmental Quality Act (CEQA), the
CEQA Guidelines, and the regulations and policies of the City of Cupertino.
SECTION 2.0 STANDARD FOR PREPARATION OF AN ADDENDUM
CEQA Guidelines Section 15164 states that the lead agency shall prepare an addendum to a
previously certified EIR if some changes or additions are necessary, but none of the conditions
described in CEQA Guidelines Section 15162 calling for the preparation of a subsequent EIR have
occurred.
CEQA Guidelines Section 15162 states that when an EIR has been certified for a project, no
subsequent EIR shall be prepared for that project unless the lead agency determines, on the basis of
substantial evidence in light of the whole record, one or more of the following:
1) Substantial changes are proposed in the project which will require major revisions of the
previous EIR or negative declaration due to the involvement of new significant
environmental effects or a substantial increase in the severity of previously identified
significant effects;
2) Substantial changes occur with respect to the circumstances under which the project is
undertaken which will require major revisions of the previous EIR or negative declaration
due to the involvement of new significant environmental effects or a substantial increase in
the severity of previously identified significant effects; or
3) New information of substantial importance, which was not known and could not have been
known with the exercise of reasonable diligence at the time the previous EIR was certified as
complete or the negative declaration was adopted, shows any of the following:
1 “Vallco Shopping District,” as used in this Addendum, refers to the Vallco Shopping District
Special Area in the General Plan.
08/20/19
560 of 598
2
Second Addendum to the 2014 Certified General Plan Amendment, Housing Element Update, and Associated Rezoning Final EIR
City of Cupertino, July 24, 2019
A) The project will have one or more significant effects not discussed in the previous
EIR or negative declaration;
B) Significant effects previously examined will be substantially more severe than shown
in the previous EIR;
C) Mitigation measures or alternatives previously found not to be feasible would in fact
be feasible and would substantially reduce one or more significant effects of the
project, but the project proponents decline to adopt the mitigation measure or
alternative; or
D) Mitigation measures or alternatives which are considerably different from those
analyzed in the previous EIR would substantially reduce one or more significant
effects on the environment, but the project proponents decline to adopt the mitigation
measure or alternative.
SECTION 3.0 PROPOSED MODIFICATIONS TO THE FINAL EIR
PROJECT
The proposed modifications to the Final EIR project are to the land uses, amount of development,
and height of structures allowed in Study Area 6 (Vallco Shopping District). The Vallco Shopping
District is approximately 70 acres in size, with 58 of those acres currently available for development.
The Vallco Shopping District is bounded by Interstate 280 (I-280) to the north, portions of North
Wolfe Road and Perimeter Road to the east, Stevens Creek Boulevard to the south, and another
portion of Perimeter Road to the west. A vicinity map of the Vallco Shopping District is shown in
Figure 3-1.
The Final EIR analyzed amendments to the General Plan designating the land use for the Vallco
Shopping District as Commercial/Office/Residential, and amendments to the Zoning Ordinance
zoning the Vallco Shopping District as Planned Development, Regional Shopping, Professional
Office, and Residential. The land use and zoning designations, which were analyzed in the Final EIR
and approved in 2014, allow for the demolition of the existing 1,267,601square foot mall and
redevelopment of the site with up to 625,335 square feet of commercial uses, 2.0 million square feet
of office uses, 339 hotel rooms, and 800 residential dwelling units. The Final EIR evaluated
maximum building heights ranging from 75 to 160 feet on the site.
08/20/19
561 of 598
Melody LaneShasta DrivePruneridge
AvenueGiannini DriveNorth Tantau Avenue Hancock DriveStevens Creek BoulevardNorth Wolfe Road
Miller
A ven u e Stern
AvenueJudy Avenue
Randy LaneBeekman
PlaceNorth Blaney
Avenue Vista Drive Lazaneo
DriveVista Drive Randy LaneWheatonDriveRodriguesAvenueRichwo o
dDrive
Vicksbur g D
r i v e La Mar DriveColby AvenueMelody LaneShasta DrivePruneridge
AvenueGiannini DriveNorthTantau
Avenue Hancock DriveStevens Creek BoulevardNorth
Wolfe Road
Mill e
r A
ven u eSternAvenueJudyAvenueRandyLaneBeekman
PlaceNorth Blaney AvenueVistaDrive Lazaneo DriveVista
Drive Randy
LaneWheaton DriveRodrigues
AvenueRichwo o
4
Second Addendum to the 2014 Certified General Plan Amendment, Housing Element Update, and Associated Rezoning Final EIR
City of Cupertino, July 24, 2019
The City proposes modifications to the project analyzed in the Final EIR which consists of the
following amendments to the General Plan:
Create two new General Plan land use designations:
o Regional Shopping
o Regional Shopping/Residential
Designate 13.1 acres of the Vallco Shopping District as Regional Shopping/Residential with
a minimum density of 29.7 dwelling units per acre (du/ac) and a maximum density of 35
du/ac, which would allow for development of between 389 and 619 dwelling units (619 units
includes a maximum 35 percent state density bonus) on-site with the option of including
ground-floor commercial uses
Designate the remaining 44.9 acres of the Vallco Shopping District as Regional Commercial
with a maximum building height of 60 feet
On the portion of the Vallco Shopping District designated as Regional Shopping/Residential,
establish height limits of 60 feet for residential-only uses and 75 feet for residential above
ground floor retail uses
Remove the 2.0 million square feet of office development allocation from the Vallco
Shopping District
Establish a setback-to-height limitation for development from the shared property line
between the North Blaney neighborhood and the Vallco Shopping District
As part of the approval process for the proposed modifications, the City Council would determine
which areas of the Vallco Shopping District would be designated as Regional Shopping/Residential
and Regional Commercial land uses. The analyses in the Final EIR and this Addendum assume the
mix of uses could develop anywhere within the Vallco Shopping District. The Final EIR identified
General Plan policies and programmatic mitigation measures to reduce impacts from development of
office, commercial, and residential land uses anywhere on the site. The refinement of the locations of
the allowable uses within the Vallco Shopping District by the City Council as part of the proposed
modifications, therefore, would not change the impacts disclosed in the Final EIR and this
Addendum because the analyses evaluate the land uses anywhere on the site. For this reason, the
decision by the City Council as to which areas within the Vallco Shopping District would be
designated as Regional Shopping/Residential and which would be designated Regional Commercial
has no effect on the analysis or conclusions in this Addendum.
In addition, the proposed modifications to the Final EIR project include rezoning the Vallco
Shopping District from Vallco Town Center to Multi-Family (R3) Residential, CG General
Commercial, and Mixed-use Planned Development with Multi-Family (R3) Residential/CG General
Commercial uses. The proposed modifications also include text amendments to the Zoning
Ordinance to clarify the zoning regulations for the mixed use zoning designation in the Vallco
Shopping District. The proposed zoning would allow mixed use residential development; however, it
would disallow commercial only development on the 13.1 acre portion of the Vallco Shopping
District proposed to be designated as Regional Shopping/Residential in order to satisfy the City’s
Housing Element obligations.
08/20/19
563 of 598
5
Second Addendum to the 2014 Certified General Plan Amendment, Housing Element Update, and Associated Rezoning Final EIR
City of Cupertino, July 24, 2019
The maximum potential development in the Vallco Shopping District under the proposed
modifications to the Final EIR project is 1,207,774 square feet of commercial uses, 339 hotel rooms,
and 619 residential units. Table 3-1, below, compares the development assumptions for the Vallco
Shopping District under the Final EIR project and under the proposed modifications to the Final EIR
project. Compared to what was analyzed for the Vallco Shopping District in the Final EIR, the
proposed modifications would result in a net increase of 582,439 square feet of commercial uses, a
net decrease of 2.0 million square feet of office uses, and a net decrease of 181 residential units. No
change to the number of hotel rooms is proposed. No modifications to the development assumptions
for the other Special Areas and Study Areas, or other aspects of the Final EIR project, are proposed.
All mitigation measures adopted and incorporated into the Final EIR project would continue to apply.
Table 3-1: Development Assumptions for Study Area 6, Vallco Shopping District
under the Final EIR Project and Proposed Modifications to the Final EIR
Project
Office
Square
Footage
Commercial
Square
Footage
Hotel
Rooms
Residential
Units
Maximum
Building
Height in Feet
A. Final EIR Project 2,000,000 625,335 339 800 75 to 160
B. Proposed
Modifications to the
Final EIR Project
0 1,207,774 339 619 60 to 75
Difference (B – A) -2,000,000 582,439 0 -181
Table 3-2 shows the net increase in development studied citywide in the Final EIR and assumed with
the proposed modifications to the Final EIR project. The overall amount of commercial, hotel, and
residential development citywide would remain the same as analyzed in the Final EIR and the overall
amount of office development citywide would be reduced by 2.0 million square feet.2
Table 3-2: Development Assumptions Citywide in the Final EIR and Under the
Proposed Modifications to the Final EIR Project
Office Square
Footage
Commercial
Square Footage Hotel Rooms Residential
Units
A. Final EIR Project 4,040,231 1,343,679 1,339 4,421
B. Proposed
Modifications to the
Final EIR Project
2,040,231 1,343,679 1,339 4,421
Difference (B – A) -2,000,000 0 0 0
2 Pursuant to General Plan Strategy LU-1.2.1, development allocations may be transferred among Planning Areas,
provided no significant environmental impacts are identified beyond those already studied in the Final EIR.
08/20/19
564 of 598
6
Second Addendum to the 2014 Certified General Plan Amendment, Housing Element Update, and Associated Rezoning Final EIR
City of Cupertino, July 24, 2019
The Final EIR evaluated a greater amount of development at buildout of the City than was ultimately
adopted by the City Council and reflected in the General Plan (see Table 3-3).
Table 3-3: Buildout of City in 2040 in the Final EIR and Adopted General Plan
Office Square
Footage
Commercial
Square Footage Hotel Rooms Residential
Units
A. Final EIR Project 12,970,005 5,073,248 2,429 25,820
B. Adopted General
Plan Per Table LU-1 11,470,005 4,430,982 1,429 23,294
Difference (A – B) 1,500,000 642,266 1,000 2,526
SECTION 4.0 ENVIRONMENTAL IMPACTS OF THE PROPOSED
MODIFICATIONS TO THE FINAL EIR PROJECT
The following discusses the potential effects on the physical environment from implementing the
proposed modifications to the Final EIR project. This analysis has been prepared to determine
whether any of the conditions in State CEQA Guidelines Section 15162 (described in Section 2.0
Standards for Preparation of an Addendum, above) would occur as a result of the proposed
modifications to the Final EIR project regarding the Vallco Shopping District.
SAME IMPACTS
Like the Final EIR project, the proposed modifications to the Final EIR project would have no
impacts to agriculture, forestry, or mineral resources, because those resources are not found within
the City of Cupertino. The proposed modifications to the Final EIR project, therefore, would not
result in any new or substantially more severe significant impacts to agriculture, forestry, or mineral
resources than were analyzed and disclosed in the Final EIR.
The proposed modifications to the Final EIR project would remove the ability to develop 2.0 million
square feet of office uses in the Vallco Shopping District and remove that development capacity
citywide. The proposed modifications would require amendments to General Plan maps and text to
reflect this change. Eliminating the ability to develop office uses in the Vallco Shopping District
would not cause a new significant impact or a substantial increase in the severity of the impacts
analyzed and disclosed in the Final EIR. For this reason, the proposed modifications to the Final EIR
project would result in the same land use impacts as disclosed in the Final EIR, and would not result
in any new or substantially more severe significant land use impacts than were analyzed and
disclosed in the Final EIR.
The physical condition and characteristics of the Vallco Shopping District have not substantially
changed since the certification of the Final EIR, though some mall structures have been demolished.
The urban nature, trees, Vallco freeway-oriented sign (a Landmark Sign in the City’s Municipal
Code), soil characteristics, seismic potential, and drainage on-site are in the same or similar condition
as they were in 2014. The proposed modifications to the Final EIR project would take place over the
same area and result in the same area of ground disturbance as analyzed in the Final EIR. For this
08/20/19
565 of 598
7
Second Addendum to the 2014 Certified General Plan Amendment, Housing Element Update, and Associated Rezoning Final EIR
City of Cupertino, July 24, 2019
reason, the implementation of the proposed modifications would have the same impacts to biological
resources, cultural resources, geology and soils, hazards and hazardous materials, and hydrology and
water quality as disclosed in the Final EIR and would not result in any new or substantially more
severe significant impacts to these resources than were analyzed and disclosed in the Final EIR.
While the number of residential units assumed to be built at the Vallco Shopping District would be
reduced by 181 units under the proposed modifications compared to the project analyzed in the Final
EIR, those 181 units would be available to be developed elsewhere in the City. For this reason, the
proposed modifications to the Final EIR project would have the same population and housing
impacts as disclosed in the Final EIR, EIR and would not result in any new or substantially more
severe significant impacts to these resources than were analyzed and disclosed in the Final EIR.
LESSER IMPACTS
The proposed modifications to the Final EIR project would allow for less development overall and
lower maximum building heights in the Vallco Shopping District (see Table 3-1). As shown in Table
3-1, above, compared to the development analyzed for the Vallco Shopping District site in the Final
EIR, the proposed modifications would replace 2.0 million square feet of office space and 181
residential units with 582,439 square feet of commercial uses.3 As shown in Table 4-1, the trip
generation from 582,439 square feet of commercial uses would have fewer daily and peak hour trips
than the 2.0 million square feet of office uses and 181 residential units that it replaces. For this
reason, the proposed modifications to the Final EIR project would not result in new or substantially
more severe significant traffic impacts than were analyzed and disclosed in the Final EIR.
Table 4-1: Change in Trip Generation Between the Net Land Use Changes Proposed at the
Vallco Shopping District
Land Use Allocation Daily
Trips
AM Peak
Hour
PM Peak
Hour
Proposed Net Increase In Land Use:
Commercial 582,439 square feet 19,736 439 1,987
Proposed Net Decrease in Land Use:
Office 2,000,000 square feet -24,700 -2,580 -2,400
Multifamily Housing 181 units -985 -66 -80
Change in Trips -5,949 -2,207 -493
Source for trip generation rates: Fehr & Peers. Vallco Special Area Specific Plan Final Draft Transportation
Impact Analysis. Table 11. May 2018. Page 71.
3 Pursuant to General Plan Strategy LU-1.2.1, development allocations may be transferred among Planning Areas,
provided no significant environmental impacts are identified beyond those already studied in the General Plan EIR.
The allocation for the additional 582,439 square feet of commercial uses at the Vallco Shopping District would need
to come from other Planning Areas in the City.
08/20/19
566 of 598
8
Second Addendum to the 2014 Certified General Plan Amendment, Housing Element Update, and Associated Rezoning Final EIR
City of Cupertino, July 24, 2019
Citywide, the proposed modifications to the Final EIR project would result in 2.0 million fewer
square feet of office development compared to what was evaluated in the Final EIR. Less
development would result in lower density, less pollutant emissions, less noise and vibration, less
traffic, and less energy and utility demand compared to the project analyzed in the Final EIR.
Even with the removal of the 2.0 million square feet of office development allocation for the Vallco
Shopping District, the remaining amount of development studied in the Final EIR citywide (over 2.0
million square feet of office uses, over 1.3 million square feet of commercial uses, 1,339 hotel rooms,
and 4,421 residential units) would result in similar but lesser impacts to aesthetics, air quality,
energy, greenhouse gas emissions, noise and vibration, public services, recreation, transportation, and
utilities and service systems than were analyzed and disclosed in the Final EIR because the remaining
amount of development is still substantial. The Final EIR evaluated alternatives to the Final EIR
project that included reduced amounts of development,4 and concluded that these alternatives would
result in essentially the same impacts as the Final EIR project.5 Therefore, the proposed modification
to the Final EIR project would not result in any new or substantially more severe significant
aesthetics, air quality, energy, greenhouse gas emissions, noise and vibration, public services,
recreation, transportation, and utilities and service systems impacts than were analyzed and disclosed
in the Final EIR.
Table 4-2 summarizes the impacts of the proposed modifications to the Final EIR compared to Final
EIR project.
4 The below table summarizes the citywide development amounts studied as the Final EIR project and alternatives
analyzed in the Final EIR.
Summary of Citywide Development Studied in the Final EIR
Final EIR
Project No Project Land Use
Alternative A
Land Use
Alternative B
Office Square Footage 4,040,231 540,231 1,040,231 2,540,231
Commercial Square Footage 1,343,679 701,413 701,413 1,343,679
Hotel Rooms 1,339 339 600 839
Residential Units 4,421 1,895 1,895 3,316
Source: City of Cupertino. General Plan Amendment, Housing Element Update and Associated Rezoning Draft
EIR. SCH# 2014032007. June 18, 2014. Page 2-5.
5 City of Cupertino. General Plan Amendment, Housing Element Update and Associated Rezoning Draft EIR. SCH#
2014032007. June 18, 2014. Page 5-5.
08/20/19
567 of 598
9
Second Addendum to the 2014 Certified General Plan Amendment, Housing Element Update, and Associated Rezoning Final EIR
City of Cupertino, July 24, 2019
Table 4-2: Comparison of Impacts of the Final EIR Project and Proposed Modifications to
the Final EIR Project
Compared to Impacts Disclosed in the Final EIR, the
Impacts of the Proposed Modifications to the Final EIR
Project would be:
Same Lesser New Significant or
More Substantial
Aesthetics X
Agricultural and Forestry
Resources X
Air Quality X
Biological Resources X
Cultural Resources X
Geology, Soils, and Seismicity X
Greenhouse Gas Emissions X
Hazards and Hazardous Materials X
Hydrology and Water Quality X
Land Use and Planning X
Mineral Resources X
Noise and Vibration X
Population and Housing X
Public Services and Recreation X
Transportation and Traffic X
Utilities and Service Systems X
08/20/19
568 of 598
10
Second Addendum to the 2014 Certified General Plan Amendment, Housing Element Update, and Associated Rezoning Final EIR
City of Cupertino, July 24, 2019
SECTION 5.0 COMPARISON TO THE CONDITIONS LISTED IN
CEQA GUIDELINES SECTION 15162
SUBSTANTIAL CHANGES TO THE PROJECT
As described above in Section 4.0 Environmental Impacts of the Proposed Modifications to the Final
EIR Project, the proposed modifications would not result in new significant environmental effects
beyond those identified in the Final EIR, would not substantially increase the severity of significant
environmental effects identified in the Final EIR, and thus would not require major revisions to the
Final EIR. The proposed modifications, therefore, are not substantial changes to the project that
require major revisions to the Final EIR.
SUBSTANTIAL CHANGES IN CIRCUMSTANCES
The physical conditions at the Vallco Shopping District site have not changed substantially since the
certification of the Final EIR, although some mall structures have been demolished as part of the
approved Senate Bill 35 (SB 35) project.6 As described above in Section 4.1 Same Impacts, the
physical conditions on the site are in the same or similar condition as they were in 2014 and as
analyzed in the Final EIR. For this reason, the demolition of the structures would not result in a new
significant environmental effect or a substantial increase in the severity of environmental effects
identified in the Final EIR, and, thus, would not require major revisions to the Final EIR.
The regulatory framework has changed since the certification of the Final EIR to include the
adoption of SB 7437, 2017 Clean Air Plan, and 2017 Bay Area Air Quality Management District
CEQA Guidelines, as well as the City’s General Plan and Transportation Impact Fee. These updates
to the regulatory framework do not change the impacts of the Final EIR project or proposed
modifications to the Final EIR project. These updates to the regulatory framework applicable to
future development would not result in new significant environmental effects or a substantial
increase in the severity of environmental effects identified in the Final EIR and, thus, would not
require major revisions to the Final EIR.
6 SB 35 applies to cities and counties that have not made sufficient progress toward meeting their affordable housing
goals for above-moderate and lower income levels as mandated by the State. SB 35 requires cities and counties to
streamline review and approval of eligible affordable housing projects by using a ministerial approval process,
thereby exempting such projects from environmental review under CEQA. The SB 35 project that was approved for
the Vallco Shopping District in September 2018 includes 1,810,000 square feet of office uses, 400,000 square feet of
commercial uses, and 2,402 housing units.
7 SB 743 establishes criteria for determining the significance of transportation impacts using a vehicle miles traveled
metric, and other changes to CEQA regarding aesthetic impacts for transit-oriented development and parking.
08/20/19
569 of 598
11
Second Addendum to the 2014 Certified General Plan Amendment, Housing Element Update, and Associated Rezoning Final EIR
City of Cupertino, July 24, 2019
NEW INFORMATION
No new information of substantial importance, which was not known and could not have been known
when the Final EIR was certified, has been identified which shows that the proposed modifications to
the Final EIR project would be expected to result in: 1) new significant environmental effects not
identified in the Final EIR; 2) substantially more severe environmental effects than shown in the
Final EIR; 3) mitigation measures or alternatives previously determined to be infeasible would in fact
be feasible and would substantially reduce one or more significant effects of the project, but the
project sponsor declines to adopt the mitigation or alternative; or 4) mitigation measures or
alternatives which are considerably different from those identified in the Final EIR would
substantially reduce one or more significant effects of the project but the project sponsor declines to
adopt the mitigation measure or alternative.
In addition, as discussed in Section 3.0 Environmental Impacts of the Proposed Modifications to the
Final EIR Project, the proposed modifications would result in the same or lesser impacts than were
analyzed and disclosed in the Final EIR. For this reason, the proposed modifications to the Final EIR
project would not require new mitigation measures because no new or substantially more severe
significant environmental effects are expected beyond those identified in the Final EIR would occur.
SECTION 6.0 CONCLUSION
For the reasons stated above, and based on the analysis in the Final EIR and the existing conditions
of the Vallco Shopping District site, the City has concluded that the proposed modifications would
not result in any new impacts not previously identified in the Final EIR; nor would it result in a
substantial increase in the severity of any significant environmental impact previously identified in
the EIR. For these reasons, a subsequent EIR is not required and an addendum to the Final EIR is the
appropriate CEQA document to address the proposed modifications to the Final EIR project.
08/20/19
570 of 598
1
MEMORANDUM
DATE: August 14, 2019
TO: Piu Ghosh, City of Cupertino
FROM: Kristy Weis, Principal Project Manager
Judy Shanley, President
SUBJECT: Response to Comments on the Second Addendum to the 2014 Certified General Plan
Amendment, Housing Element Update, and Associated Rezoning Draft EIR (SCH#
2014032007)
The City of Cupertino prepared a July 29, 2019 Second Addendum (“Second Addendum”) to the
2014 certified General Plan Amendment, Housing Element Update, and Associated Rezoning Draft
Environmental Impact Report (“Final EIR”). The Second Addendum evaluated proposed
modifications to the project analyzed in the Final EIR (the “Final EIR project”) pertaining to the
Vallco Shopping District.
The City has received comments on the Second Addendum through August 5, 2019 from the
following:
Albert Liu
Ann Cleaver
Ansh Shukla
Chi Yeh
Chris Ambrose
City of Santa Clara
Connie Cunningham
Cupertino Resident
Doug Rowe
Emma Bridge
Eric Wilson
Frank Geefay
Gail C
Geoffrey Paulsen
Glenn Cabral
James Moore
Jean Bedord
Joan Trampenau
John Stubblebine
Keith Murphy
Kirk Vartan
Liana Crabtree
MingLam Choi
R Wang
Randy and Carle Hylkema
Vallco Property Owner, LLC
Sonja Trauss
Stephanie Pressman
Steve Kelly
Teresa Erdman
Valerie Szymanski
08/20/19
571 of 598
2
The City also received oral comments at the July 30, 2019 Planning Commission hearing.
The comments received pertaining to the adequacy of the Second Addendum are summarized by
topic, below, with responses. Copies of the written comments are included in Attachment A, and the
oral comments provided at the Planning Commission hearing can be viewed here:
https://www.cupertino.org/our-city/videos-on-demand/all-televised-meetings.
CEQA does not require the analysis of economic changes resulting from a project (CEQA Guidelines
Section 15064[e]). For this reason, comments received regarding the economic viability of the
project are not included in the summary below. In addition, comments regarding the merits of the
proposed project modifications (e.g., economic feasibility) are not included in the summary below
because they are not comments on environmental issues.
The comments did not raise any significant new information related to new or substantially more
severe significant environmental impacts than were previously identified in the certified Final EIR.
SUMMARY OF COMMENTS AND RESPONSES
Comments on Form of Environmental Review:
Requires environmental review
Subsequent EIR needed because the project has substantially changed and the mall is almost
completely vacant
Response regarding environmental review: Environmental review in accordance with the
California Environmental Quality Act (CEQA) was completed by the City for the proposed
modifications to the Final EIR project.
A Second Addendum to the Final EIR dated July 24, 2019 was prepared by the City. The
standards for preparing an addendum are explained in Section 2.0 on pages 1 and 2 of the
Second Addendum, and are found in CEQA Guidelines Section 15164.
A comment was made that a subsequent EIR (“SEIR”) must be prepared instead of an
addendum because the mall was 85% occupied in 2014 and is now “almost completely
vacant.” While it is true that the mall occupancy has declined since the certification of the
Final EIR in 2015, the change in mall occupancy would require a SEIR if the change in mall
occupancy causes the proposed project modifications to result in new significant
environmental effects or a substantial increase in the severity of previously identified
significant effects (CEQA Guidelines Section 15162).
The reduction in occupancy of the Mall since the certification of the Final EIR does not
implicate any of the requirements in CEQA Guidelines Section 15162 to prepare an SEIR
instead of an addendum because:
The mall has become less occupied over time, and is now almost completely unoccupied,
which is an existing condition; therefore, it would not be caused by the proposed
modifications to the General Plan and zoning; and
The proposed modifications would either reduce the impacts of redeveloping the mall site
compared to the development analyzed in the Final EIR, or would have the same impacts
as discussed in Section 4.0 on pages 6 through 9 of the Second Addendum.
08/20/19
572 of 598
3
Because the proposed modifications would not lead to or implicate any of the conditions
described in CEQA Guidelines Section 15162 that would require preparation of an SEIR,
pursuant to CEQA Guidelines Section 15164 an addendum is the appropriate document to
analyze the environmental effects of the proposed modifications.
Comments on Environmental Impacts:
Urban decay and blight not analyzed
Increase in traffic due to proposed project modifications
Need to study hazardous materials impacts
Need to study school impacts and potential need for a new school
Need to study parkland impacts
Anticipated wastewater flows and impacts to the sanitary sewer system
Response regarding urban decay and blight: A comment was made that prohibiting office
uses would “block redevelopment” of the site and would create urban decay because there
would be “protracted vacancy.” Because the occupancy of the mall has declined and the mall
is mostly vacant (which is the current, existing condition), the proposed modifications to the
Final EIR project would not lead to vacancy and urban decay.
It is speculative to assume that the project modifications would cause blight. The
amendments would allow redevelopment of the site with approximately 1.2 million square
feet of commercial uses, a total of 339 hotel rooms, and 619 residential units. There is no
substantial evidence that these uses cannot be developed on the site, which is an infill site
served by existing infrastructure including utilities and service systems and transit.1
Response regarding traffic impacts: The traffic impacts of the proposed modifications are
analyzed in Section 4.2 on page 7 of the Second Addendum. As explained and shown in
Table 4-1 on page 7 of the Second Addendum, the proposed modifications would result in a
net reduction in daily and peak hour vehicle trips compared to the Final EIR project. The
proposed modifications, therefore, would not result in new or substantially more severe
significant traffic impacts than were analyzed and disclosed in the Final EIR.
Response regarding hazardous materials impacts: Hazardous materials impacts from the
project are analyzed in Section 4.1 of the Second Addendum. As discussed on pages 6 and 7
of the Second Addendum, the physical condition and characteristics of the Vallco Shopping
District site have not substantially changed since the preparation of the Final EIR. Since that
time, further investigation of the site in the form of a Site Characterization Report has not
disclosed any additional hazards, and some of the previously identified hazardous materials
have been removed from the site.2 The proposed modifications to the Final EIR project
would take place over the same area and result in the same ground disturbance as analyzed in
the Final EIR. For these reasons, implementation of the proposed modifications would have
the same hazardous materials impacts as disclosed in the Final EIR.
1 If determined to be necessary, the City could enforce Municipal Code requirements for the property owner to take
action to prevent blight, such as requiring the property owner maintain the property (Municipal Code Chapter 9.22),
and pursuing nuisance abatement (Municipal Code Chapters 1.09 and 1.12).
2 Sources: 1) WSP. Site Characterization Report Former Vallco Shopping Mall 10123 North Wolfe Road,
Cupertino, California. April 2019, revised August 2019. 2) Baseline Environmental Consulting. Memorandum:
Peer Review of Site Characterization Report and Environmental Site Management Plan, Former Vallco Shopping
Mall, 10123 North Wolfe Road, Cupertino, California. August 8, 2019.
footnote continued on next page)
08/20/19
573 of 598
4
At the time a specific development project is proposed, project-level environmental review is
required. Pursuant to Mitigation Measures HAZ-4a and HAZ-4b in the Final EIR, which was
adopted and incorporated into the Final EIR project and would continue to apply to the
modified project, if the project-level environmental review identifies contamination on a site,
the contamination shall be remediated in consultation with the Regional Water Quality
Control Board or Department of Toxic Substances Control (or other appropriate oversight
agency).3
The Site Characterization Report completed in 2019 for the Vallco Shopping District site
identified Recognized Environmental Conditions (RECs) on-site and completed site
investigations (including soil sampling and a geophysical survey).4 As discussed in the report
and the Environmental Site Management Plan for the site, remediation of contamination on-
site would be under the oversight of the Santa Clara County Fire Department or other
appropriate regulatory agency.5 The report did not identify any new or substantially more
severe significant hazardous materials impacts than previously identified in the Final EIR and
the remediation actions described in the Site Characterization Report are consistent with
Mitigation Measures HAZ-4a and HAZ-4b in the Final EIR.
Response regarding school impacts: As explained and shown in Table 3-2 on page 5 of the
Second Addendum, the project modifications would reduce the number of residential units
assumed in the Final EIR project for the Vallco Shopping District site from 800 to 619 (a
difference of 181 units) compared to the number analyzed in the Final EIR. The 181
residential units removed from the site due to the proposed project modifications could be
developed elsewhere in the City, however. Therefore, the overall amount of residential
development capacity citywide would remain the same as studied in the Final EIR. For this
reason, the school impacts from the project would be the same as analyzed in the Final EIR.
The Final EIR concluded that no new schools would be needed and development on existing
school campuses would not result in significant environmental impacts.6 Furthermore, it was
concluded in the more recently certified 2018 Vallco Special Area Specific Plan EIR (SCH#
2018022021), which analyzed up to 4,000 new residential units at the Vallco Shopping
District, that no net new or expanded school facilities would be required.7 For these reasons,
the project modifications would not require the construction of new schools.
3 City of Cupertino. General Plan Amendment, Housing Element Update, and Associated Rezoning Draft EIR
SCH# 2014032007). June 18, 2014. Pages 4.7-23 and 4.7-24.
4 Sources: 1) WSP. Site Characterization Report Former Vallco Shopping Mall 10123 North Wolfe Road,
Cupertino, California. April 2019, revised August 2019. 2) Baseline Environmental Consulting. Memorandum:
Peer Review of Site Characterization Report and Environmental Site Management Plan, Former Vallco Shopping
Mall, 10123 North Wolfe Road, Cupertino, California. August 8, 2019.
5 Sources: 1) WSP. Site Characterization Report Former Vallco Shopping Mall 10123 North Wolfe Road,
Cupertino, California. April 2019, revised August 2019. 2) WSP. Environmental Site Management Plan Former
Vallco Shopping Mall 10123 North Wolfe Road, Cupertino, California. April 2019, revised August 2019.
6 City of Cupertino. General Plan Amendment, Housing Element Update, and Associated Rezoning Draft EIR
SCH# 2014032007). June 18, 2014. Pages 4.12-18 through 4.12-20.
7 City of Cupertino. Vallco Special Area Specific Plan Draft Environmental Impact Report. (SCH #2018022021).
May 2018. Page 254.
08/20/19
574 of 598
5
Response regarding parkland impacts: As discussed in Section 4.2 on page 8 of the
Second Addendum, the project modifications would result in the removal of 2.0 million
square feet of office development allocated to the Vallco Shopping District. The remaining
amount of development studied in the Final EIR citywide would remain the same. Because
the proposed modifications would result in less development citywide, the impacts to
parkland would be similar but less than described in the Final EIR. For this reason, the
project modifications would not result in new or substantially more severe significant
parkland impacts than disclosed in the Final EIR.
Response regarding sewer system capacity: The proposed project modifications would
result in less development than was analyzed in the Final EIR. As described in Section 4.2 on
page 8 of the Second Addendum, less development would result in similar but lesser impacts
to utilities and service systems (including the sanitary sewer system) than disclosed in the
Final EIR because less development would result in less demand for utilities and service
systems.
As explained in the Final EIR, when new development projects are proposed, the City
requires the developer to demonstrate that either adequate sanitary sewer system capacity
exists or to identify necessary mitigations.8 Mitigation Measures UTIL-6a, UTIL 6b, and
UTIL- 6c in the Final EIR, which were adopted and incorporated into the Final EIR project
and would continue to apply to the modified project, require the City to work with the
Cupertino Sanitary District to increase citywide wastewater transmission and treatment
capacity based on a study of estimated wastewater generation rates of proposed General Plan
development to be prepared by the CSD in cooperation with the City, and requires the City to
establish a system for monitoring and tracking development for comparison to the treatment
capacity threshold. If new development would exceed the treatment capacity threshold, no
building permits would be issued if prior to increasing citywide contractual capacity. If
proposed development would generate substantial increases in wastewater, the developer is
required to prepare a hydraulic model of the pipe system between the development site and
downstream facilities.9 The City would require new development to increase capacity, as
necessary, to ensure sufficient capacity is provided. No specific development is proposed at
this time; therefore, no wastewater flow calculations or hydraulic modeling is required.
8 Sources: 1) City of Cupertino. General Plan Amendment, Housing Element Update, and Associated Rezoning
Draft EIR (SCH# 2014032007). June 18, 2014. Pages 4.14-36 and 4.14-37. 2) City of Cupertino. General Plan
Amendment, Housing Element Update, and Associated Rezoning Responses to Comments Document (SCH#
2014032007). August 28, 2014. Pages 3-13 and 3-14.
9 City of Cupertino. General Plan Amendment, Housing Element Update, and Associated Rezoning Draft EIR
SCH# 2014032007). June 18, 2014. Page 4.14-36.
08/20/19
575 of 598