02. Economic Development
10300 Torre Avenue
Cupertino, CA 95014
(408) 777-3308
FAX (408) 777-3333
I F
CUPEIQ1NO
Community Development Department
SUMMARY
AGENDA NO. ~
AGENDA DATE January 30. 2006
SUBJECT:
Discussion about the General Plan policy on Economic Development.
Recommendation:
Discuss the General Plan policies related to Economic Development.
Backl!round:
In November 2005, the City Council adopted the General Plan with updated policies pertaining
to Economic Development. The Council asked to include these policies in a study session to
allow the council to discuss the details of implementation.
Discussion:
To assist your discussion, attached is a list of the General Plan policies and the Power Point slide
pertaining to Economic Development contained in the Mayor's State of the City presentation on
Wednesday January 25,2006.
,
~
Ste e Piasecki
Director of Community Development
David W. Knapp
City Manager
Attachments:
List of General Plan Economic Development Policies
General Plan Changes - Economic Development from Mayor Lowenthal's State of the City
presentation on Wednesdy January 25,2006.
1. -I
CUPERTINO GENERAL PLAN ADOPTED 11-15-05
Excerpts of Text and Policies Related to Economic Development
Policy 2-20 Diversity of Land Use
Maintain a city structure of Neighborhoods, Commercial areas, Employment area and
Education/Cultural areas. Provide sufficient development opportunities for these areas in
order to enhance their distinct character and functions, while maintaining the desired
transportation levels of service.
Strategy 2:
Major Companies. Prioritize expansion of office space for existing major companies in
Cupertino. Retain a pool of 150,000 square feet to be drawn down by companies with
Cupertino sales offices or corporate headquarters. New office development must
demonstrate that the development positively contributes to the fiscal well being of the
City.
COMMERCIAL CENTERS
Commercial areas in the City offer a variety of goods and services directly to residents in
the neighborhoods or the larger region. Vallco Park and the Crossroads Area are the
primary, concentrated commercial areas. General Plan allocations for other commercial
areas are for local-serving commercial needs. Commercial/residential mixed-use is
encouraged in selective commercial areas ifthe residential units provide an incentive for
retail development and the resulting development is financially beneficial to Cupertino.
Active commercial uses, such as bookstores, coffee shops, restaurants, office supply,
furniture and electronic stores are encouraged to locate in Cupertino.
Policy 2-27 Heart of the City
A majority of the commercial development allocation should be devoted to enhancing
activity in the major activity centers. Mixed commercial and residential development
may be allowed if the residential units provide an incentive to develop retail use, if the
development is well designed, financially beneficial to Cupertino, provides community
amenities and is pedestrian-oriented. Land uses between the activity centers should help
focus and support activity in the centers.
Policy 2-28 Crossroads Area
Development Activities: Development along Stevens Creek Boulevard shall have retail
uses with storefronts on the ground level. Commercial office uses may be allowed on the
second level. Limited residential uses are allowed.
Policy 2-29 Stevens Creek Boulevard
Mixed commercial and residential development may be allowed if the residential units
provide an incentive to develop retail use, if the development is well designed, financially
beneficial to Cupertino, provides community amenities and is pedestrian-oriented. Land
uses between the activity centers should help focus and support activity in the centers.
~-J-
2
Policy 2-30 Val/co Park South
Retain and enhance Vallco Park South as a large-scale commercial area that is a regional
commercial (including hotel), office and entertainment center with supporting residential
development.
Strategy I Master Plan - Prepare a Master Plan for this area to ensure continuity of mass,
scale, connectivity and adequacy of infrastructure and services, including schools.
Strategy 2 Continue the Val1co Parkway streetscape, which was approved as part of the
Val1co Rosebowl mixed-use development, along the entire Parkway.
Development Intensity: Development intensity shall be determined in conjunction with
specific development review. Mixed commercial and residential development may be
allowed if the residential units provide an incentive to develop retail use, if the
development is well designed, financially beneficial to Cupertino, provides community
amenities and is pedestrian-oriented.
Heights: to 60 feet if there is a retail component and 45 if not.
Policy 2-31Homestead Road
Development intensity shall be determined in conjunction with specific development
review. Mixed commercial and residential development may be allowed if the residential
units provide an incentive to develop retail use, if the development is well designed,
financially beneficial to Cupertino, provides community amenities and is pedestrian-
oriented.
Policy 2-38 Economic Development Plan:
Use an annual, 5-year revenue projection, forecast by revenue area, to correspond to
Cupertino's current revenue analysis. Include a fiscal analysis of development
applications comparing the development proposal with the annual economic development
plan, including the fiscal impacts of the development on the city's projected 5-year
revenue stream. Develop a proactive economic development strategy that links
residential development to provision of revenue generating uses such as sales tax offices
and retail uses. Create an economic development staff and budget.
New Policy
Conversion ofOfficelIndustrial Uses to Residential: Evaluate the economic impacts of
converting office/industrial uses to residential uses.
New Policy
Maintaining Cohesive Commercial Centers and Office Parks.
Cohesive commercial centers and office parks are necessary to maintain a healthy sales
tax base for the city and to retain opportunities for existing businesses to expand in
response to changing business trends. Cupertino's major retail commercial centers are
located at Vallco Fashion Park, The Marketplace and Portal Plaza centers, Cupertino
Village, the Oaks and the Crossroads Commercial District; the office parks are located at
Val1co (North of Highway 280), North De Anza Boulevard and Bubb Road.
Projects with residential or quasi-public components proposed to replace some or all of
the existing industrial, office and commercial uses on a site in these areas will be
2-]
3
evaluated on a case by case basis to determine if they are complementary to the overall
business park or shopping center, or otherwise meet the following criteria:
I) Integrate into the existing land use pattern by:
· Continuing established land use patterns (e.g. commercial next to
commercial or residential adjacent to residential)
· Continuing patterns of building massing, setbacks and height
· Establishing logical development patterns bounded by visible natural or
man-made features such as a public or private road, creek, freeways etc.
2) Provide visible pedestrianlbicycle connections to and from existing uses.
3) Provide a visible and publicly accessible park/plaza or open space area.
4) Orient active building spaces to the public or private rights of way.
5) Provide superior building design with high quality natural materials and
building architecture.
6) Demonstrate there are sufficient existing or supplemental local revenues to
support municipal and school services needed to serve the development.
7) Show that the building is functionally obsolete in a market sense and cannot
be reasonably redeveloped or marketed into a compatible use within the
surrounding area, or show the existing building/use is no longer
complementary to the larger commercial center or office park.
8) Show that the development can reasonably stand alone as a self-sufficient land
use that is otherwise complementary to existing buildings and uses.
9) Show that the residential or quasi-public use provides an incentive to
incorporate a significant component of commercial or office uses on the site.
Two-thirds ofthe commercial/office square footage that is converted to residential uses
shall be allocated to major employers (companies with Cupertino sales offices or
corporate headquarters). The remainder of the square footage shall be allocated to the
commercial or office pool in the subject area. .
Policy 2-39 Partnerships:
Encourage the private sector to participate in partnerships with nonprofit or public
agencies to provide community benefits and services
Policy 2-40New Businesses and Business Retention:
Encourage new businesses and retain existing businesses that provide needed local
services and municipal revenues, contribute to economic vitality and enhance the City's
physical environment.
Strategy 1:
Collaboration with Business Community;
Collaborate with the business community to facilitate growth, development and
infrastructure improvements that benefit residents and businesses through the City's
Economic Development Committee and other resources.
2-~
4
Policy 2-41 Maintain Streamlined Development Review and Building Permit Processes:
Provide efficient and timely review of development proposals, while maintaining quality
standards in accordance with city codes. Look for solutions to problems, be responsive to
community concerns, promote positive communications at all levels of review and
provide analysis and advice to decision-makers to help them make informed decisions.
Cupertino is interested in working with local companies and businesses to maintain a
high quality community. City officials strive to be responsive to the needs oflocal
businesses and seek opportunities for interaction with them.
Policy 2-42
Retail Sales and Office Development
In reviewing office development proposals, encourage office uses and activities that
generate significant revenues to the City, such as local sales offices, capturing point of
sale internet transactions and business to business tax revenues. New office development
exceeding 50,000 square feet shall be approved only if one ofthese or similar benefits are
provided.
Policy 2-44
Incentives for Reinvestment
Provide incentives for reinvestment in the existing commercial areas.
Strategies:
I. Mixed use. Consider mixed-u8se (office, commercial, residential) in certain
commercial areas to provide more community identity, pedestrian activity and housing
opportunities without marginalize tax-revenue producing businesses.
2. Shared or Reduced Parking. Consider shared parking or reduced parking requirements
as incentives to construct new commercial development without constructing
unnecessary amount of parking.
3. Streetscape Improvements. Consider streetscape improvements to such areas as the
Crossroads area to encourage redevelopment of the area as a pedestrian-oriented, mixed-
use village and to contribute to housing or community design goals.
New Policy
Big Box Development. Consider approving big box development if it is compatible with
the surrounding area in terms of building mass and traffic.
G/public/steve p/economic development plan. doc
'2-j
N
,
<S'--