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CC 08-25-22 (Special Meeting) APPROVED MINUTES CUPERTINO CITY COUNCIL Thursday, August 25, 2022 SPECIAL MEETING At 6:00 p.m., Mayor Darcy Paul called the Special City Council Meeting to order in the Cupertino Community Hall Council Chamber, 10350 Torre Avenue. ROLL CALL Present: Mayor Darcy Paul, Vice Mayor Liang Chao, and Councilmembers Kitty Moore, Hung Wei, and Jon Robert Willey. Absent: None. OPEN SESSION ORDINANCES AND ACTION ITEMS 1. Subject: Consider the appointment of negotiators for the acquisition of real property located at 21801 Stevens Creek Boulevard, Cupertino Recommended Action: Consider the appointment of Public Works Director Matt Morley and City Attorney Christopher D. Jensen as negotiators for the acquisition of the real property located at 21801 Stevens Creek Boulevard, and authorize the negotiators to negotiate with property owner ETNB Holding Co. LLC Written Communications for this item included a property information handout and emails to Council. Mayor Paul opened the public comment period and seeing no one, closed the public comment period. City Attorney Chris Jensen reviewed the property summary and provided considerations for acquiring the property including costs, allocation of resources, timing, and receipt of public funds. City Council Minutes August 25, 2022 Page 2 Public Works Director Matt Morley reviewed the process for an acquisition of the property. Councilmembers asked questions and made comments. Councilmember Willey comments: supported looking into pricing for developing the property, including options to repurpose, tear down, or expand; supported a data comparison to the Veranda project; supported purchasing the property; was cautious about adding the property to the Housing Element sites prematurely and until after Councilmember questions have been answered by staff. Vice Mayor Chao comments: supported looking into how the real estate brokers are selected and Council providing direction on how to evaluate the brokers; supported adding the property to the Housing Element inventory list for study; supported the property acquisition as a good opportunity, partnering with somebody to build it, and seeking grant funding. Councilmember Wei comments: supported acquiring the property to maintain as an office space with the purpose of BMR or moderate-income housing, and maybe working with the County; was concerned about the short timing; supported outreach for neighborhood support for a low-income housing site; supported a higher density and height for project viability. Councilmember Moore comments: supported a real estate purchase policy; was concerned about continuing to purchase properties like the Stocklmeir, Blesch, and Byrne houses that remain undeveloped; supported a plan to identify the purpose for the acquisition and informing the public of the affordable housing site; many pros and few cons but supported breaking the five year lease; supported adding the General plan Amendment (GPA) into the Housing Element (HE) process before the (Environmental Impact Report (EIR) starts; supported looking into options to gut and redevelop or expand. Mayor Paul comments: supported the potential for an affordable housing process and finding a potential affordable housing nonprofit partner; the timing is good and Cupertino is committed to delivering affordable housing and an appropriate jobs-housing balance, and it would be consistent with stated positions; if looking at significant renovations like City Hall then using the office space is something to consider. Willey moved and Chao seconded to appoint Public Works Director Matt Morley and City Attorney Christopher D. Jensen as negotiators for the acquisition of the real property City Council Minutes August 25, 2022 Page 3 located at 21801 Stevens Creek Boulevard, and authorize the negotiators to negotiate with property owner ETNB Holding Co. LLC. The motion carried unanimously. CLOSED SESSION 2. Subject: Conference with real property negotiators pursuant to Government Code section 54956.8 Property: 21801 Stevens Creek Boulevard, Cupertino Agency Negotiators: Matt Morley and Christopher D. Jensen Negotiating Parties: ETNB Holding Co. LLC Under Negotiation: Price and terms of payment Council conducted the conference with real property negotiators pursuant to Government Code section 54956.8. There was no reportable action. ADJOURNMENT At 8:05 p.m., Mayor Paul adjourned the Special City Council Meeting. Kirsten Squarcia, City Clerk