CC 07-16-2024 Item No. 10 Waiver of BMR Housing Mitigation Fees_Late Written CommunicationsCC 7-16-2024
#10
Waiver of BMR
Housing
Mitigation Fees
Written Comments
From:Liang Chao
To:City Clerk
Subject:Written Communication for the 7/16 Council meeting - Final comment for agenda item on waiving BMR fees
Date:Tuesday, July 16, 2024 11:25:22 PM
Please enter the statements I read below into the record for the 7/16 Council meeting.
This is the reason that voted no for that item.
=============
We must learn from history so we don’t make the same mistake.
Back in 2013, Council promised a revitalized shopping mall. But the Dec. 2014 Council
allocated 2 million sqft of office space to an existing shopping mall, with a building
height of 167 feet, when the maximum building heights in Cupertino were 45 feet in most
of the city. The Dec. 2014 Council handed out office entitlements without any restriction
in 2014, which resulted in the SB 35 project that does not require even the city council
approval. The community had no say in the project.
In 2013, we had a shopping mall, a theater, and many beloved small businesses that
have been in the community for 20-30 years. Those business owners saw Cupertino
residents grew up going to their shops. Those long-time small retailers in Cupertino were
forced out when Sand Hill Property forced the Mall to close for no reason in 2014. At the
same time, other cities have actually seen revitalized shopping malls.
We all know that below market rate projects cannot be created without subsidies.
Make no mistake. This SB 35 project already received many subsidies through state
laws, density bonus, concessions and other waiver of planning standards. Plus the
allocation of 2 million sq. ft. of office space. This office-heavy project stands to make a
lot more profits than many other true housing projects.
If the city waives the $67M fees for this office-heavy project which is much needed to
build more BMR housing, we are $67M short in our BMR fund. Period. We are subsidizing
an already very affluent developer at the expenses of the most vulnerable in our society.
I cannot in good conscience support that. I was forced to support the settlement
agreement since the city was threatened with a lawsuit. This powerful developer has a
large team of attorneys, so they can get their way to maximize their profits again, and
again, in addition to getting state laws changed to take advantage of a mistake of the
2014 council to allocate 2M sqft office space without any standards, such as height
limit. To protect the city from legal challenges, I supported the settlement agreement.
But, I would not support the waiving of almost $77M of BMR or planning fees to subsidize
an affluent developer at the cost of the most vulnerable in our community.
Post-Note: 99% of developers do respect the community, work with the community and
propose projects that fit the character of the community. These projects do come to the
Council for approval and they are mostly approved by the Council with public inputs with
improvements to make it a better project. I truly appreciate these developers who follow
the rules and respect the community where they build the project.
Liang Chao
Councilmember
City Council
LChao@cupertino.gov
408-777-3192
From:Cupertino ForAll
To:City Council; City Clerk
Subject:For Public Comment (7/16): Item 10 Waiver of Below Market Rate Housing Mitigation Fees
Date:Tuesday, July 16, 2024 6:44:46 PM
Attachments:07.16.24 - Letter to City Council.pdf
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Good evening,
Please see the attached letter for Public Comment regarding Item 10 for today's (7/16) Council
Meeting.
Regards,
Steering Committee
Cupertino for All
July 16,2024
Cupertino City Council
10350 Torre Avenue Cupertino,California 95014
For Public Comment Re:7/16 Council Meeting -Item 10 Waiver of Below Market Rate
Housing Mitigation Fees
Dear Cupertino City Council and to whom it may concern,
Cupertino for All is writing to express our unwavering support for the fee regime
outlined in the staff report for the Vallco SB-35 mixed-use,housing-rich project.As
you prepare to vote on Item 10 –Waiver of Below Market Rate Housing Mitigation
Fees and Zoning/Planning Municipal Code Fees –we urge you to consider the
profound impact that your unanimous support can have on our community.
Our organization believes in a Cupertino that embraces equity,inclusivity,and
progress.The Vallco project,with its provision of 890 affordable housing units,aligns
with our mission to ensure that Cupertino remains a welcoming home for people of
all backgrounds and income levels.This project is a cornerstone in addressing the
diverse housing needs of our community and fulfilling our housing element.
We must address the misinformation that has emerged due to interpretations of the
staff report and recent media coverage.Contrary to the narrative that this vote
represents a fee giveaway to Sandhill Company,the reality is that this decision
upholds the city’s end of a negotiated agreement.The current fee regime is the
maximum legally permissible under the recent SCOTUS precedent (Sheetz v.County
of El Dorado,2024).Pursuing additional BMR fees would not only be legally
challenging but would also jeopardize the significant community benefits already
negotiated through this proposed fee structure.
The provision of affordable housing units fully mitigates the impact of the project’s
market-rate housing and nonresidential components,as detailed in the staff
report.By approving this fee regime,you are ensuring that the city can collect
substantial fees to support essential services and avoid future legal challenges;these
fees alone will close our city’s unprecedented deficit in light of the CDTFA’s recent
rule change.
This vote is more than a financial decision;it is a statement of unity and progress.
Unanimous support from the City Council will send a powerful message that we are
ready to heal from past divisions and work together for the common good.This
project will bring vibrancy to an empty lot that has long symbolized inaction,
providing a central place for our community to live,work,and play.
We believe this is a rare opportunity to show brave leadership and move forward with
a project that aligns with our shared values and needs.Let us not feed fear but
instead embrace the potential for positive change.We know we need to do this.Your
unanimous support will help transform Cupertino into a more inclusive and dynamic
community.
Thank you for your consideration.
Regards,
Steering Committee
Cupertino For All