9212 Report Appendices9212 Report – City of Cupertino March 2016 | Appendix 1
Appendix 1
Appendix 1A: Text of Proposed Initiative
Appendix 1B: City Attorney’s official Title and Summary
Appendix 1C: Notice of Intent to Circulate Petition
APP-001
CUPERTINO CITIZENS' SENSIBLE GROWTH INITIATIVE
A MEASURE AMENDING THE CUPERTINO GENERAL PLAN TO ENSURE BALANCED
AND SENSIBLE GROWTH BY MAINTAINING CITYWIDE LIMITS ON THE INTENSITY
OF NEW DEVELOPMENT, PRESERVING AND ENHANCING THE VALLCO SHOPPING
DISTRICT FOR RETAIL, HOTEL , DINING AND ENTERTAINMENT COMMERCIAL
USES ONLY AND REQUIRING A VOTE OF THE PEOPLE TO MODIFY THOSE LIMITS
AND USES.
THE PEOPLE OF THE CITY OF CUPERTINO DO ORDAIN AS FOLLOWS :
PART I. TITLE
This measure shall be called the CUPERTINO CITIZENS' SENSIBLE GROWTH INITIATIVE
PART II. FINDINGS
The people of Cupertino hereby find that:
A The City of Cupertino needs binding standards to guide new development within the City.
B . Cupertino's citizens wish to maintain control over the long-term direction of that
development.
C. The City needs to develop in a moderate and controlled way that provides the housing,
shopping, jobs, infrastructure, and amenities that will serve the best interests of City residents
while avoiding overdevelopment and its associated traffic and other impacts.
D. The long-term direction provided by the City's General Plan must be implemented through its
specific plans and zoning ordinance without being subject to change due to pressure from the
profit-driven proponents of specific projects.
E. The City must protect the development density and intensity standards set by the General Plan
through limits on heights, setbacks and building planes to prevent distortion of the desirable
characteristics of the City through the influence of developers and other outside interests .
F . The availability of sufficient retail commercial space is essential to the wellbeing of the City,
its current and future residents, and its workers .
PART III. PURPOSE
This initiative measure (the "Initiative") has three purposes . If approved by the voters of
Cupertino and enacted, it will ( 1) control the intensity of new development by setting general
citywide limits on building heights, setbacks, building planes and lot coverage in Cupertino that
will provide long-term direction, (2) preserve and enhance the Vallco Shopping District for
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Appendix 1A
APP-002
retail, hotel, dining and entertainment commercial uses and (3) require that changes or
exceptions to those limits and uses be presented to and approved by the voters of Cupertino.
Under this Initiative, the General Plan (Community Vision 2015-2040)-hereinafter referred to
as "General Plan," specific plans and conceptual plans , and zoning ordinance would be enforced
and not amended on an ad hoc basis to suit individual development projects. The standards in
this Initiative are intended to strengthen these plans to protect Cupertino's vibrant mixed use
atmosphere, schools, and streetscapes, to limit traffic and congestion, and to promote public
safety.
PART IV. GENERAL PLAN AMENDMENT
The General Plan is hereby amended by enacting or reenacting segments of that general
plan as follows:
Note: All numbering of sections, policies, strategies, tables, and figures herein follows that
of the General Plan as amended on October 20, 2015. Following the adoption of the
Initiative, the General Plan's sections, policies, strategies, tables, and figures, and all
internal references thereto, shall be renumbered in a logical order, and tables and figures
shall be modified to conform to the Initiative's changes to the General Plan's text, as
specified herein.
Section 1. Chapter 1 -Introduction
a. The last paragraph of the Section entitled "Purpose of Community Vision 2040" as
of October 20, 2015, is amended as follows:
Due to the breadth of topics covered in Community Vision 2040, conflicts between mutually-
desirable goals are inevitable. For instance, increased automobile mobility may conflict with a
safe, walkable community. This document reconciles these conflicts in the interest of building a
cohesive community by placing a priority upon maintaining the well-being of Cupertino
residents. Per State law, every goal and policy in this plan has equal weight. The City recognizes
that the interests of residents of a particular street or neighborhood may need to be balanced ·.vith
the overall needs and potentially greater goal of building a community. These are
Harmonization of possible conflicts between goals and policies in this plan shall be guided by an
understanding that the General Plan reflects conscious choices that the City makes in the interest
of building community and protecting its residents . That harmonization shall also recognize that
changes made through this Initiative are intended to modify and supersede any section, policy,
strategy, table, or diagram that might otherwise conflict with the amendments being made by this
Initiative, and the General Plan shall be conformed accordingly.
b. A new paragraph is added to the Section entitled "Purpose of Community Vision
2040" as of October 20, 2015 as follows:
Portions of the General Plan were enacted or reenacted in 2016 by a voter initiative. A copy of
that initiative shall be appended to the General Plan as an appendix unless or until that
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APP-003
requirement is changed or rescinded by the voters. It is the intent of the voters of Cupertino that,
in interpreting and harmonizing the provisions of the General Plan, priority be given to ensuring
that the provisions enacted or reenacted by the 2016 voter initiative be followed and
implemented to the fullest extent possible.
Section 2. Chapter 2-Planning Areas
a. The Section "Vision" for the Valko Shopping District Special Area is amended as
follows:
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 "tovm center" and gateway for
Cupertino providing a unique and memorable shopping, dining and entertainment experience
with appropriate bicycle and pedestrian-friendly access. It Vfill include an interconnected street
grid network of bicycle and pedestrian friendly streets, mMore pedestrian-oriented buildings
with active uses may line lining Stevens Creek Boulevard and Wolfe Road,--and with publicly-
accessible parks and plazas that support the pedestrian-oriented feel of the revitalized area. New
development in the Vallco Shopping District should must be required to provide buffers between
to protect adjacent single-family neighborhoods in the form of boundary walls , setbacks,
landscaping or building transitions.
Section 3. Chapter 3 -Land Use and Community Design Element
a. The Section "Context" is amended as follows:
The first paragraph of the subsection "Economic Vitality" is amended as follows:
Cupertino is fortunate in its location in the heart of Silicon Valley . Despite its mostly suburban
characteristics to the west and south, the city is home to a number of small , medium and large
software, technology and biomedical companies. The General Plan includes more office gro'.vth
recognizes the need to retain balanced growth to support &-strong fiscal revenues and a stable tax
base. In particular, policies focus on retaining and increasing the number of small, medium and
major businesses in key sectors and provide flexible space for innovative startups that need non-
traditional office environment. Policies for commercial areas seek to revitalize the Vallco
Shopping District, and enhance commercial centers and neighborhood centers, which contribute
to the City's tax base and serve community needs.
Table LU-1: "CITYWIDE DEVELOPMENT ALLOCATION BETWEEN 2014-2040" is
amended by the additions and strikeouts shown below.
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APP-004
The subsection "Site and Building Design" is amended as follows:
Policy LU-3.0: Community Form
The maximum heights and densities for the special areas shown in the Community Form
Diagram (Figure LU-1) shall not be exceeded. Outside of the Special Areas shown in Figure LU-
I, building heights may not exceed 45 feet. Building height shall be measured to the highest
point of the building, excluding light poles, antennae, minor mechanical boxes or roof vent
protrusions which are not easily visible. A below-grade structure is not counted towards building
height. For any project of over 50,000 sg. ft. of building area, maximum lot coverage shall not
exceed 70%.
No provision allowing additional height or density, modifying maximum lot coverage, building
plane, or minimum setback to relax the standards set in this General Plan, other than those
mandated by state law, shall be allowed:
Figure LU-1 "Community Form Diagram" and the Land Use Map (shown below in their
current form) shall be conformed to the requirements set by Policy LU-3.0, Policy LU-3.2,
Policy LU-19.2 and the density changes identified in Footnotes (a) through (c) in the new
Table HE 5.5 [previously Appendix B Table 5.5] as shown in Section 3 of this Part IV.
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APP-006
In order to assure the retention and enforcement of City guidelines not currently included
in the General Plan, the following policies are amended as shown
Policy LU-3.2: Building Heights1 ftBd Setback Ratios, Stepbacks and Building Planes :
Maximum heights and setback ratios are specified in the Community Form Diagram (Figure LU-
I) and as described below. As indicated in the figure , taller heights are focused on major
corridors , gateways and nodes . Setback ratios are established to ensure that the desired
relationship of buildings to the street is achieved.
Policy LU-3.2.1: Additional Floor Area. In any area where an increase in the maximum
building height is granted in exchange for ground floor retail, no more than 1 square foot of
additional floor area above the otherwise-applicable height limit may be allowed for every 1
square foot of ground floor retail. In any such exchange, all ground floor retail must be fully
accessible to the public during operating hours .
Policy LU-3.2.2: Rooftop Height Extensions. Rooftop mechanical equipment and utility
structures other than cell phone transmission antennae, but no other structures or building
features , may exceed stipulated height limitations shown in Figure LU-1 if they are enclosed,
centrally located on the roof and not visible from adjacent streets.
Policy LU-3.2.3: North De Anza Boulevard. For the area from I-280 south to Alves Drive on
the west and from I-280 south to St. Joseph 's Church on the east, not including St. Joseph 's
Church:
• For all new construction, there shall be landscaped setback areas extending a minimum of
50-ft. from curb line. Alternatively, the landscaped setback areas adjacent to North De
Anza Blvd. may have a varied depth but a minimum square footage equal to the lot
frontage distance multiplied by 50 ft., and a minimum setback distance at any point of 35
ft . from curb line .
Policy LU-3.2.4: Stevens Creek Boulevard
• The minimum setback on both sides of Stevens Creek Boulevard from CA-85 to the
eastern boundary of the City of Cupertino is no less than 3 5 feet from the curb line .
• On both sides of Stevens Creek Boulevard from CA-85 to Perimeter Road buildings shall
be below a 1: 1 (i .e . 1 foot of stepback for every 1 foot of building height drawn from the
curb line) slope line drawn from the Stevens Creek Boulevard curb line .
• On the north side of Stevens Creek Boulevard from Perimeter Road to the eastern
boundary of the City of Cupertino buildings shall be below a 1.5 :1 (i .e. 1.5 feet of
stepback for every 1 foot of building height drawn from the curb line) slope line drawn
from the Stevens Creek Boulevard curb line.
• On the south side of Stevens Creek Boulevard from Perimeter Road to the eastern
boundary of the City of Cupertino buildings shall be below a 1: 1 slope line drawn from
the Stevens Creek Boulevard curb line .
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APP-009
Policy LU-3.2.5: Homestead Road in the North Valko Park Area
On Homestead Road from Linnet Lane (west of Wolfe Road) to Swallow Drive (east of Wolfe
Road) buildings shall be below a 1. 5 : 1 slope line drawn from the Homestead Road curb line.
Policy LU-3.2.6: Building Planes on Arterial/Boulevard Streets.
Unless specified in other LU-3.2 policies, all other arterial/boulevard streets buildings shall be
below a 1: 1 (i .e . 1 foot of stepback for every 1 foot of building height drawn from the curb line)
slope line drawn from the curb line or lines.
The Subsection "City Center Subarea" is amended as follows:
Strategy LU-16.1.3: Building form. The form ofB.Quildings should, through the use of step-
downs and setbacks, be designed be moderately scaled to transition from existing taller buildings
(new or existing) to the scale of the surrounding area. Taller buildings should provide
appropriate transitions to fit into the surrounding area.
The subsection "Vallco Shopping District Special Area" is amended as follows:
Valko Shopping District Special Area
The City envisions encourages the renovation and improvement of the existing Cupertino 's
Valko Fashion Shopping Mall while maintaining its important role as a retail shopping center
serving Cupertino 's residents and regional visitors. a complete redevelopment of the existing
Vallee Fashion Mall into a vibrant mixed use "tovm center" that is a focal point for regional
visitors and the community. This new As renovated, the Vallco Shopping District will become a
destination for shopping, dining and entertainment in the Santa Clara Valley .
GOAL LU-19
CREATE A DISTINCT AND l\4Etv10RABLE l\4IXED USE "TO'.VN
CENTER" THAT IS PRESERVE AND ENHANCE THE V ALLCO
SHOPPING DISTRICT AS A LOCAL AND REGIONAL RETAIL,
HOTEL, DINING AND ENTERTAINMENT COMMERCIAL
DESTINATION AND A FOCAL POINT FOR THE COMMUNITY
Policy LU-19.1: Specific Plan
Create a Vallco Shopping District Specific Plan prior to any development or other significant
changes in use on the site that lays out the land uses, design standards and guidelines, and
infrastructure improvements required. The Specific Plan will be based on the following
strategies:
Strategy LU 19.1.1: l\faster De,'eloper. Redevelopment will require a master developer in
order remove the obstacles to the development of a cohesive district ·.vith the highest levels of
urban design.
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APP-010
Strategy 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 .
Strategy LU 19.1.J: Complete Redevelapment. The "tovm 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.
Strategy LU-19.1.4: Land use. The following uses are allowed on the site (see Figure LU 1 for
residential densities and criteria):
1. Retail : High-performing retail, restaurant and entertainment uses . Maintain a minimum of
600,000 1,200,000 square feet ofretail/dining/entertainment that provide a good source of sales
tax for the City and provides high quality convenient shopping for residents of the city and
surrounding areas . 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 vmo like to li•;e
in an active "tovm 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 .
Strategy LU 19.1.5: "Tawn Center" layaut. Create streets and blocks laid out using "transect
planning" (appropriate street and building types for each area), 'tvhich includes a discernible
center and edges, public space at center, high quality public realm, and land uses appropriate to
the street and building typology .
Strategy LU-19.1.6: Connectivity. Provide a newly configured complete street grid hierarchy of
streets, boulevards and alleys that is Any changes to the existing circulation pattern as part of a
development or revision should be 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 Any such development or revision 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.
Strategy LU-19.1.8: Open space. Ground-level Gopen space areas in the form ofa central town
square on thew-est and east sides of the district interspersed with plazas and "greens" should be
included that create community gathering spaces, locations for public art, and event space for
community events:-
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APP-011
Policy LU-19.2: The Vallco Shopping District shall continue to be devoted to retail, hotel,
dining and entertainment commercial use. No residential or office use shall be allowed. Building
heights shall be restricted to a maximum of 45 feet. Figure LU-1 and the Land Use Map shall be
conformed to this policy.
The subsection "North Valko Park Special Area" is amended as follows:
Policy LU-20.3: Building Form. Buildings in the retail and hotel area should provide active,
pedestrian-oriented uses along the street. Buildings should shall transition to fit the scale of the
surrounding area. Taller buildings should shall provide appropriate transitions to fit into the
surrounding area. In addition to the height limits established in the Community Form Diagram,
buildings abutting the campus shall incorporate appropriate setbacks, landscaped buffering, and
building height transitions to minimize privacy and security impacts.
Section 4. Chapter 4 -Housing Element
a. The Section "Housing Resources" is amended as follows:
The subsection "Overview of Available Sites for Housing" is amended in its second and
third paragraphs as follows:
Figure HE-1 indicates the available residential development opportunity sites to meet and exceed
the identified regional housing need pursuant to the RHNA. The opportunity sites can
accommodate infill development of up to l,400--1,3 86 residential units on properties zoned for
densities of 20 dwelling units to the acre or more. The potential sites inventory is organized by
geographic area and in particular, by mixed use corridors. The sites identified to meet the near
term development potential are shown in Table HE-5. As shovm in Table HE 5, sites identified
to meet the near term development potential lie v1ithin the North Vallco Park Special Area, the
Heart of the City Special Area, and the Vall co Shopping District Special Area.
One particular site will involve substantial coordination for redevelopment (Because
redevelopment of the Vallco Shopping District, Site A2h cannot involve additional housing
units, Due to the magnitude of the project, the City has established a contingency plan to meet
the RHNA if a Specific Plan is not approved ·.vithin three years of Housing Element adoption.
This contingency plan (called the City must follow its contingency plan to meet the RHNA,
known as Scenario Band (discussed further in General Plan Appendix B),. Scenario B wettltl
involve§ the City removing Vallco Shopping District from its inventory of available sites for
housing, adding other mere priority sites to the inventory, and also increasing the
density/allowable units on some of the other priority sites.
Figure HE-1: Priority Housing Element Sites: Scenario A is deleted in its entirety and
replaced by Figure B-8 from Appendix B, page B-148, which shall be relabeled as Figure
HE-1: Priority Housing Element Sites -Scenario B. Both the current Figure HE-1 and
Figure B-8 are provided below.
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APP-012
TABLE HE-5: SUMMARY OF PRIORITY HOUSING ELEMENT SITES TO MEET THE
RHNA -SCENARIO A
'
Site
Site A 1 (The Hamptons)
Site A2 (Va llco
Shopping District)
Site A3 (The Oaks
Shopping Center)
Site A4 (Marina Plaz a)
Site AS (Ba r ry Swenson )
Adopted General Plan/
Adopted Zoning
High Density
P(Res )
RS /O/R
P(Regional Shopping)
& P{CG)
C/R
P(CG, Res)
C/O/R
P(CG, Res )
C/O /R
P(CG , Res)
•• _·
• •
North
Vallco Park 85
Valko
Shopp ing 35
D istrict
Heart of
t he City 30
Heart of
t he City 35
Heart of
the City 25
Max Height
75 ft; or 60 ft in certain
lo cations*;
height to be determined
in Vallco Shoppi ng
District Spe ci fic Pla n
45 ft
45 ft
45 ft
Total
• .
600 net
389
200
200
11
1,40oj
Notes: Zoning for Si te A2 (Val/co) will be determined by Specific Plan to allow residential uses. Site A 1 (Hamptons) height limit of 60 feet is
applicable for buildings located within 50 feet of property lines abutting Wolfe Rd, Prune ridge Ave. & Apple Campus 2 site. Site A2 (I/al/co)
height will be determined by Specific Plan. For more detail on height limits, see Land Use and Community Design Element, Figure LU-1 .
Site B1 (Ha mptons) North Vallco Park High De nsity 12.44 750 Ve ry Low/
P{Res) Low
Site B2 (T he Oa ks Heart of t he City C/R 35 (b) 7.9 23 5 Very Low/
Shoppi ng Cen ter) P(C G, Res) Low
Site B3 {Marina Plaza) Heart of the C ity C/O/R 35 6.86 200 Very Low/
P(CG , Res) Low
Site B4 (Barry He art of t he City C/0 /R 25 0.5 5 11 Very Low/
Swen son ) P{CG, Res) Low
Site BS (Glenbrook Heart of t he City Medium De nsity 20 3 1.3 58 Very Low /
Apartments) R3 (10-20) Lo w
Site B6 (H omest ead Homest ead C/R (c) 3 5 (c) 5 .1 132 Very Low/
Lanes an d Adjace ncy) P(CG , Res) {c) Lo w
Total 64.24 1,386
Notes:
(a) A General Plan Amendement and zoning change w ill be ncessary to allow the increase in density from 85 to 99 un its per acre on Site 81.
(b) A Genera l Plan Amendment and zoning change w ill be necessary to allow the increase in density from 30 to 35 units per acre on Site 82.
(c} A General Plan Amendment and zoning change w il I be necessary to allow residentia l uses at 35 units per acre on Site 86. Existing zoning for
Site 86 is P(Rec, Enter).
(d) Realistic capacity reduces the max i mum developable units by 15 percent on Sites 8 1, 82, 83, B4, and 8 6. Realistic capacity of Site BS is (d)
reduced by 46 percent due to existing site constraints.
(e) Identified capacity of sites that allow development densit ies of at least 20 units per acre are credited toward the lower-i ncome RH N A based
on State law. Pursuant to Government Code Section 65583 .2(c)(3)(8), local governments may utilize "defau lt" density standards to provide
evidence that "af>propriate zon ing" is in place to support the deve lopment of housing for very-low and low-income liouseholds . The default
density standard for Cupertino and other suburban Jurisdictions in Santa Clara County is 20 dwelling units per acre (DUA) or more.
(f) Real istic capacity for sites B 1 and BS represent net new units.
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APP-015
b. The Section "Housing Plan" is amended as follows:
The subsection "Implementing Strategies" is amended as follows:
The fifth bullet point under Strategy 1: Land Use Policy and Zoning Provisions is amended
as follows:
• Priority Housing Sites : As part of the Housing Element update, the City has identified
fi.ve-priority sites under Scenario-A B-(see Table HE-5) for residential development over
the next eight years . The General Plan and zoning designations will allow the densities
for this development. shovm in Table HE 5 for all sites except the Vallee Shopping
District site (Site A2). The redevelopment of Vallee Shopping District \vill involve
significant planning and community input. /•£ specific plan will be required to implement
a comprehensive strategy for a retail/office/residential mixed use development. The
project applicant would be required to \Vork closely vfith the community and the City to
bring forth a specific plan that meets the community's needs, with the anticipated
adoption and rezoning to occur within three years of the adoption of the 2014 2022
Housing Element (by May 31 , 2018). The specific plan would permit 3 89 units by right
at a minimum density of20 units per acre .
If the specific plan and rezoning are not adopted within three years of Housing Element
adoption (by May 31 , 2018), the City will schedule hearings consistent with Government
Code Section 65863 to consider removing Vallee as a priority housing site under
Scenario A , to be replaced by sites identified in Scenario B (see detailed discussion and
sites listing of "Scenario B" in Appendix B Housing Element Technical Appendix). As
part of the adoption of Scenario B, the City intends to add two additional sites to the
inventory: Glenbrook Apartments and Homestead Lanes, along ·.vith increased number of
permitted units on The Hamptons and The Oaks sites . All sites in Scenario B, except the
Homestead Lanes, have Aapplicable zoning is in place"' for Glenbrook Apartments;
hov;ever the The Homestead Lanes site will weuld need to be rezoned at that time to
permit residential uses. Any rezoning required will allow residential uses by right at a
minimum density of 20 units per acre.
Delete the following table:
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APP-016
Cupertino Department of
Responsible Agencies: Community Development/
Planning Division
Ongoi ng; Adopt Specific Plan and
rezon i ng for Vallco by May 3 1,
Time Frame: 2018; otherwise, conduct public
hearings to consider adoption of
"Scenario B" of sites strategy.
Funding Sources: None required
1,064 units (178 extremely
!ow-, 178 very !ow-, 207 low-,
Quantified Objectives:
231 moderate-and 270 above
moderate-income units)
Part V: EXEMPTIONS FOR CERTAIN PROJECTS
This Initiative shall not apply to any development project which has obtained as of the effective
date of this Initiative a vested right pursuant to State law.
Part VI: EFFECTIVE DATE, PRIORITY, AND CONSISTENCY
This Initiative shall become effective immediately upon the certification of the election results.
Within six (6) months of the effective date of this measure, all provisions of the municipal code,
ordinances, including zoning ordinances, resolutions, administrative policies, general plans,
specific plans, conceptual plans or any other plan of the City shall be revised and amended to
make them conform with the provisions of this Initiative. Until such time as the above referenced
ordinances and plans have been so revised and amended, the provisions of this Initiative shall
prevail over any conflicting provisions.
Part VII: SEVERABILITY
The people of Cupertino hereby declare that they intend to enact each and every provision of this
Initiative regardless of the presence or absence of any other provision, and to that extent all of
the provisions of this Initiative are to be considered severable. In the event a final judgment of a
court of competent jurisdiction detennines that any provision, section, subsection, sentences,
clause, or phrase or application of this Initiative measure is found to be invalid or unenforceable
for any reason, the invalid or unenforceable portion shall be severed from this measure, and the
remaining portions of this measure shall remain in full force.
Part VITI: AMENDMENT OR REPEAL
Except as otherwise indicated herein, this Initiative may be amended or repealed only by the
voters at a City election.
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APP-017
CITY ATTORNEY’S BALLOT TITLE AND SUMMARY FOR PROPOSED INITIATIVE
SUBMITTED ON NOVEMBER 24, 2015
TITLE: Initiative amending Cupertino’s General Plan to limit redevelopment of the
Vallco Shopping District, limit building heights and lot coverages in areas throughout
the City, establish new setbacks and building planes on major thoroughfares, and
require voter approval for any changes to these provisions.
SUMMARY: As required by State law, the City of Cupertino’s General Plan establishes
permissible land uses, maximum development densities, and intensities for all
properties within the City. The City recently completed a multi-year planning effort
that resulted in the adoption of its General Plan (Community Vision 2015 – 2040),
intended to guide development through the year 2040.
The initiative amends Cupertino’s General Plan in several ways, including
requirements for: the Vallco Shopping District; building heights, setbacks, planes, and
lot coverage in other areas of the City; residential allocation; and the Housing Element.
For the Vallco Shopping District, the initiative: (1) removes the General Plan’s vision
for the “complete redevelopment of the existing Vallco Fashion Mall into a vibrant
mixed use ‘town center’” and restates the City’s goal as to “preserve and enhance the
Vallco Shopping District as a local and regional retail, hotel, dining and entertainment
commercial destination. . . . ”; (2) prohibits residential and office uses; (3) restricts
building heights to a maximum of 45 feet; and (4) increases the minimum square
footage of retail/dining/entertainment uses from 600,000 to 1,200,000 square feet.
In other areas of the City, the initiative: (1) prohibits building heights greater than 45
feet except in North Vallco Park and South Vallco Park Gateway within the Heart of the
City Special Area; (2) adds policies regarding setbacks, “stepbacks,” “building planes,”
and rooftop height extensions citywide; (3) adds specific policies applicable to North De
Anza Boulevard, Stevens Creek Boulevard, and Homestead Road in North Vallco Park;
(4) limits the maximum lot coverage for projects over 50,000 square feet to 70%; and (5)
reduces the Citywide residential allocation by 146 units.
For the Housing Element, state law requires that every general plan identify priority
housing sites to accommodate that city’s share of regional housing needs. The initiative
removes the current General Plan “Scenario A” of priority sites and replaces it with the
General Plan’s “contingency plan”, “Scenario B”. Scenario B: (1) removes the Vallco
Shopping District as a priority housing site; (2) increases residential units allocated to
Appendix 1B
APP-018
the Heart of the City and North Vallco Park Special Areas: (3) adds two other sites; and
(4) reduces the total number of priority housing units by 14.
The initiative states that it shall not apply to any development project that has obtained,
prior to the initiative’s effective date, a vested right pursuant to state law.
It directs the City to amend all other provisions of its municipal code, ordinances, plans,
policies, and resolutions to conform with the initiative within six months.
The initiative states that, except as indicated therein, no provision of the initiative may
be amended without voter approval.
The initiative has no expiration date.
APP-019
Page 1 of 19
APPENDIX 2
SECTION-BY-SECTION DESCRIPTION AND SUMMARY OF INITIATIVE
This Appendix to the 9212 Report summarizes and describes each part of
the Initiative. It was prepared by the City Attorney’s office and outside counsel with the
assistance of City planning staff. The full text of the Initiative is set forth in Appendix
1A.
The Initiative states that it seeks to achieve its stated purposes by amending
various provisions of the City of Cupertino’s General Plan (Community Vision 2015-
2040). California law requires each city and county to adopt and maintain a “general
plan” that establishes permissible land uses and maximum development densities and
intensities for all properties within that jurisdiction. A city’s general plan effectively
serves as its living “constitution” for all future land use decisions. Under state law, and
in the absence of an initiative providing otherwise, a city council can amend the general
plan up to four times per year.
The Initiative’s proposed amendments to Cupertino’s General Plan are
described below in Part III. Where helpful to show the changes made by the Initiative,
this summary adopts the Initiative’s practice of showing proposed deletions to the
existing General Plan in strikethrough and new language inserted by the Initiative in
underline.
I. Part I. TITLE (Page 1 of the Initiative)
Part I of the Initiative sets forth the title proposed by the Initiative
proponents: “Cupertino Citizens’ Sensible Growth Initiative.” As is often the case, this
title differs from the official title prepared by the City Attorney pursuant to Elections
Code section 9203, which requires the City Attorney to prepare “a true and impartial
statement of the purpose of the proposed measure in such language that the ballot title
shall neither be an argument, nor be likely to create prejudice, for or against the proposed
measure.”
The City Attorney’s official ballot title reads as follows: “Initiative
amending Cupertino’s General Plan to limit redevelopment of the Vallco Shopping
District, limit building heights and lot coverages in areas throughout the City, establish
new setbacks and building planes on major thoroughfares, and require voter approval for
any changes to these provisions.”
The City Attorney’s full ballot title and summary for the Initiative is set
forth in Appendix 1B.
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II. PART II. FINDINGS (Page 1 of the Initiative)
Part II of the Initiative sets forth the Initiative’s proposed “findings,” which
summarize the proponents’ rationale for why the Initiative is needed at this time. Further
information regarding the proponents’ reasons for proposing the Initiative are set forth in
the Notice of Intent to Circulate Petition that the proponents submitted when they
requested the official title and summary. The Notice of Intent is reproduced in Appendix
1C.
If the Initiative is adopted, these findings could help guide the City Council,
or the courts in the event of a legal challenge, in determining how to interpret and apply
any ambiguities in the provisions set forth in the Initiative.
III. PART III. PURPOSE (Pages 1-2 of the Initiative)
Part III of the Initiative sets forth its three purposes, which are to:
1. “control the intensity of new development by setting general
citywide limits on building heights, setbacks, building planes and lot
coverage in Cupertino that will provide long-term direction”;
2. “preserve and enhance the Vallco Shopping District for retail, hotel,
dining and entertainment commercial uses”; and
3. “require that changes or exceptions to those limits and uses be
presented to and approved by the voters of Cupertino.”
Like the “findings” in Part II, these stated purposes could help guide the
City Council, or the courts in the event of a legal challenge, in determining how to
interpret and apply any ambiguities in the General Plan amendments set forth in the
Initiative. The City Council, however, has broad discretion to interpret any ambiguities
in the General Plan and to balance competing policies, goals, and provisions of the
General Plan, whether adopted by the Initiative or otherwise. San Francisco Tomorrow
v. City and County of San Francisco (2014) 229 Cal.App.4th 498, 513-16.
The Initiative seeks to achieve these purposes by amending various
provisions of the General Plan.
IV. PART IV. GENERAL PLAN AMENDMENTS (Pages 3-15 of the
Initiative)
This is the heart of the Initiative, which sets forth the proposed changes to
the General Plan. The amendments are contained in four “sections” corresponding to the
four chapters of the General Plan that the Initiative would amend.
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A. Section 1 (Pages 2-3 of the Initiative)
This section amends the portion of Chapter 1 of the General Plan that sets
forth the existing General Plan’s overall purpose. Among other things, it inserts the
following new text: “[C]hanges made through this Initiative are intended to modify and
supersede any [existing provisions of the General Plan] that might otherwise conflict with
amendments” proposed by the Initiative, and directs that the rest of the General Plan shall
be conformed to the Initiative. The Initiative also adds a directive that, in interpreting the
General Plan, “priority be given to ensuring that the provisions enacted or reenacted by
the 2016 voter initiative be followed and implemented to the fullest extent possible.”
Part VI of the Initiative contains similar language giving priority to the provisions
enacted by the Initiative.
To the extent that this language elevates the provisions proposed by the
Initiative over other provisions of the General Plan, a court might find that it is unlawful.
See Sierra Club v. Kern County (1981) 126 Cal.App.3d 698, 703-08 (holding that a
similar provision constituted an unlawful “precedence clause” and was therefore “void”
and not permitted under the State Planning and Zoning law). On the other hand, a court
could interpret this provision as simply promoting internal general plan consistency. See
Pala Band of Mission Indians v. San Diego County (1997) 54 Cal.App.4th 565, 577
(holding that Kern County did not render invalid an initiative that did not create any
general plan consistencies, and stating that initiative provisions giving a county board of
supervisors authority to fix any such inconsistencies appear to be lawful).
Also, as of the date of this Report, two other initiative measures (“Other
Measures”) have been proposed in Cupertino that may conflict, at least in part, with this
Initiative.1 If this Initiative passes and one or both of the Other Measures also passes and
1 The official titles for these two measures are: (1) “Initiative amending Cupertino’s
General Plan and Heart of the City Specific Plan to: (1) allow 280,000 square feet of
office space, 200 hotel units, and 270 residential units, and a height limit of 88 feet for a
mixed-use development project at the Cupertino Oaks Shopping Center (“Property”); (2)
exempt the Property from some development standards; and (3) require the City to
promptly process and approve an application for a project that includes specified
community benefits and is consistent with the terms of the proposed initiative” (referred
to in this Appendix as “the Oaks Initiative”) (2) “Initiative adopting the Vallco Town
Center Specific Plan to (1) provide that the Vallco Shopping District Special Area
(“Area”) contains a mixture of residential, office, retail, civic and education uses; (2)
require any development to fund or provide community benefits such as transit, schools,
a green roof, and recycled water; and (3) grant the property owner initial entitlements to
develop in accordance with the Initiative and establish a process for future approvals; and
(footnote continued on next page)
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receives more votes, then a court would need to first determine whether and which
provisions conflict. If the provisions can be harmonized, both will be given effect.
However, any provision in this Initiative that conflicts with a provision in one of the
Other Measures that received more votes would not take effect. In the absence of a valid
“competing measure” clause to the contrary, the general rule is that if provisions of two
ballot measures conflict, and if both measures are passed at the same election, the
provisions of the measure with the highest affirmative vote shall prevail. Cal. Const. Art.
II, § 10(b); Elections Code § 9221; see Taxpayers to Limit Campaign Spending v. Fair
Political Practices Commission (1990) 51 Cal.3d 744, 770.
B. Section 2 (Page 3 of the Initiative)
This section of the Initiative is one of several provisions that change the
City’s vision for, and policies governing, future use and development of the Vallco
Shopping District Special Area. It amends the provision in Chapter 2 of the General Plan
that sets forth the “Vision” for the Vallco Shopping District Special Area. Specifically, it
removes the current General Plan text envisioning this area as a “new mixed-use ‘town
center’” and replaces it with language calling for the area to provide a “unique and
memorable shopping, dining and entertainment experience.”
C. Section 3 (Pages 3-11 of the Initiative)
This section amends several provisions in General Plan Chapter 3, the Land
Use and Community Design Element. As the current General Plan explains, Chapter 3
“is the keystone” of the General Plan. “It unifies and informs the other Elements by
providing an overall policy context for future physical change.”
Many of the changes made by this section relate primarily to the Vallco
Shopping District Special Area (“Vallco”), but others apply citywide or just to certain
areas of the City. Where a particular change affects both Vallco and other areas of the
City, this summary will first identify the impacts on Vallco and then describe the impacts
on other areas of the City.
1. Amendments regarding “Economic Vitality” (Page 3 of the
Initiative)
In the subsection of Chapter 3 entitled “Economic Vitality,” the Initiative
makes the following change: “The General Plan includes more office growth recognizes
the need to retain balanced growth to support a strong fiscal revenues and a stable tax
(footnote continued from previous page)
making related amendments to Cupertino’s General Plan and Municipal Code” (referred
to in this Appendix as the “Vallco Initiative”)
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base.” This change is consistent with the Initiative’s other provisions, discussed below,
that remove the 2,000,000 square feet of additional office space currently allocated to the
Vallco area.
2. Amendments regarding Table LU-1, Citywide Development
Allocation Between 2014-2020 (Pages 3-4 of the Initiative)
To provide for balanced future growth and development and in order create
a more complete community, the General Plan allocates future development potential by
land use type (i.e., commercial, office, hotel, and residential) to different planning areas
within the City. These “allocations” are set forth in Table LU-1 of the General Plan and
assigned by “Planning Area.” The General Plan provides that “some flexibility may be
allowed for transferring allocations among Planning Areas,” and it also directs that Table
LU-1 be maintained and updated to ensure that the allocations for various land uses
adequately meet city goals.
The Initiative amends several of the allocations in Table LU-1 and also
limits the City Council’s ability to make further changes to the allocations for the Vallco
site, as follows:
For Vallco: The Initiative deletes (1) the 2,000,000 square feet of future
office development allocated to Vallco; and (2) the 389 units of future residential
development allocated to Vallco. Two hundred and forty-three (243) of the residential
units are effectively “reallocated” to other areas of the City, but the 2,000,000 square feet
of office space is not reallocated. Other provisions of the Initiative provide that the
roughly 1.2 million square feet of existing commercial development at Vallco must be
maintained as a “minimum,” and also as the maximum. In addition, the Initiative deletes
two footnotes from Table LU-1 that encourage prompt submission of a proposed Specific
Plan for the comprehensive redevelopment of the Vallco site by a master developer. The
language proposed for deletion states: 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.
For Other Areas: 150 units of future residential development are
allocated to the North Vallco Park Special Area and 93 future residential units are
allocated to the Heart of the City Special Area. The Initiative also adds an asterisk (*) to
each of these allocations—and to the accompanying citywide total allocations—stating
that they “may be changed through the normal general plan amendment process.”
Citywide: The above changes are also reflected in the Citywide total
development allocations. Thus, with the changes made by the Initiative, the total
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available future development allocations Citywide would be: 798,917 sq. feet of
commercial development; 553,826 sq. feet of office development; 313 hotel rooms or
units; and 1,736 residential units.
Voter Approval required for certain future amendments to the
development allocations shown in Table LU-1: Under the adopted General Plan,
allocations may be shifted within different Planning Areas. See, e.g., Strategy LU-1.2.1.
In addition, the City Council may amend any of the allocations in Table LU-1 pursuant to
the provisions of the State Planning and Zoning Law that allow up to four amendments t o
a city’s general plan each year. Part VIII of the Initiative—which states that “Except as
otherwise indicated herein, this Initiative may be amended or repealed only by the voters
at a City election”—would limit the Council’s ability to make such amendments.
The implication of this voter approval language for the allocations
expressly removed or added to Table LU-1 by the Initiative is clear: The allocations
deleted from the Vallco site may not be readopted without voter approval; likewise, the
reallocated residential units for the North Vallco Park and Heart of the City Special Areas
may be amended by the City Council through the “normal general plan amendment
process” (i.e., without voter approval), as indicated by the asterisks added by the
Initiative.2
For the other allocations set forth in Table LU-1—which are neither added
nor deleted by the Initiative—it is not clear whether the Initiative’s voter approval
requirements apply. It should be noted that the Initiative does not state that it is
readopting or reenacting Table LU-1 as a whole. Instead, it states (at the bottom of page
3) that “Table LU-1: . . . is amended by the additions and strikeouts shown below.” Since
the other allocations in Table LU-1 were not reenacted, it appears that the voter approval
requirement in Part VIII of the Initiative does not apply to these other allocations except
to the extent that some other provision of the Initiative expressly references them.3
2 It appears that the Initiative proponents may have inadvertently omitted an asterisk from
the 553,826 sq. feet of office development they show as available Citywide. This is
because they included an asterisk for the 9,470,005* sq. feet of office development
projected at “buildout” of the General Plan in 2040. The 553,826 square feet allocated as
“available,” however, is derived simply by subtracting the existing square footage of
“current built” office development from the 9,470,005* buildout figure. It necessarily
follows that the 553,826 sq. feet should have an asterisk as well.
3 The only instance of this identified by the City is the Initiative’s amendment to Strategy
LU-19.1.4. As explained in more detail below, the Initiative amends this strategy to
require that a minimum of 1.2 million square feet of commercial use be maintained at
Vallco. This is about the same amount of commercial square feet that Table LU-1 shows
as currently existing at (and allocated to) Vallco.
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This interpretation appears to best effectuate the purposes of the Initiative
and, in light of the ambiguity, the City Council most likely would have the discretion to
interpret the Initiative in this way. See, e.g., San Francisco Tomorrow v. City and County
of San Francisco (2014) 229 Cal.App.4th 498, 521 (“‘[T]he settled rule [is] that where [a
general plan] is ambiguous, courts should give it “a reasonable and common sense
construction in accordance with the apparent purpose and intention of the lawmakers—
one that is practical rather than technical and that will lead to a wise policy rather than
mischief or absurdity.’”); see id. at 513-15, 521-24. In addition, although it is the intent
of the voters—rather than the Initiative proponents—that would guide any court in
construing this language, the website of the Initiative proponents contains several
statements reflecting this same understanding. See. e.g.,
http://www.ccsensiblegrowth.org/#!what-will-it-do-or-not-do/uln5w (stating that the
Initiative “WILL NOT take away City Council’s ability to increase citywide office
allocation, residential allocation or hotel or retail allocation”).
3. Amendments regarding the General Plan’s Community Form
Diagram and Land Use Map (Pages 5-7 of the Initiative)
The Initiative adds a new Policy LU-3.0, which provides, among other
things, that:
“The maximum building heights and densities for the special areas
shown in the Community Form Diagram (Figure LU-1) shall not be
exceeded.” With two exceptions, this provision would essentially
lock in place the existing building heights and densities for the eight
“Special Areas” identified in the existing General Plan Community
Form Diagram. The two exceptions are: (1) the Vallco Shopping
District Special Area, which a separate provision of the Initiative
(New Policy LU-19.2 on page 11 of the Initiative) reduces to a
maximum of 45 feet; and (2) the density changes set forth in the
final sentence of this policy.4 Voter approval would be required to
increase any of the heights or densities in these nine Special Areas.
“Outside of the Special Areas shown in Figure LU-1, building
heights may not exceed 45 feet.” The only areas of the City that are
“outside of the Special Areas” are the parts of the City that the
4 The final sentence in new Policy LU-3.0 states that the Community Form Diagram shall
be “conformed” to “the density changes identified in Footnotes (a) through (c) in the new
Table HE 5.5 [previously Appendix B Table 5.5] as shown in Section 3 of this Part IV.”
There is no Table HE 5.5 in the referenced “Section 3,” which is not italicized in the
Initiative. However, the referenced Table HE 5.5 does appear in Section 4 of the
Initiative. See page 15 of this Appendix, below.
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General Plan defines as Neighborhoods.5 The existing General
Plan—as well as the City’s Zoning Ordinance—establish 30 feet as
the maximum building height for the neighborhoods. Accordingly,
this provision would increase the maximum building height of the
City’s Neighborhoods by 15 feet, to 45 feet. Voter approval would
be required to increase building heights above 45 feet in any of the
Neighborhoods.
“For any project of over 50,000 sq. ft. of building area, maximum
lot coverage shall not exceed 70%.” This policy means that, for any
project over 50,000 sq. ft, the City Council could not approve a
project that would cover more than 70% of the lot.
“No provision allowing additional height or density, modifying
maximum lot coverage, building plane, or minimum setback to relax
the standards set forth in this General Plan, other than those
mandated by state law, shall be allowed.” This amendment—which
applies citywide—would generally lock in place the General Plan’s
existing standards (as modified by the Initiative) for maximum
building height and density, maximum lot coverage, building plane,
and minimum setback. This provision would thus require voter
approval for any increase in the specified maximum (or decrease in
the specified minimum) standards, “other than those mandated by
state law.”
The “other than mandated by state law” exception appears to
provide a safety valve to allow the City Council to relax the
specified standards where a specific provision of State law—for
instance the various State law provisions requiring cities to provide
for their regional fair share of housing—would require such a
relaxation. The courts have upheld similar provisions. See, e.g.,
Shea Homes Limited Partnership v. County of Alameda (2003) 110
Cal.App.4th 1246, 1265-66.
However, as explained in the Report, the language of this provision
does not appear to allow the City to grant any variances from these
specified building standards in the absence of a specific state law
provision requiring one. The provision of the State Planning Law
5 As Chapter 2 of the General Plan explains, for planning purposes, the City is organized
“into 21 distinct Planning Areas, divided into two categories: 1. Special Areas that are
expected to transition over the life of the General Plan and 2. Neighborhoods where
future changes are expected to be minimal.”
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authorizing variances does not mandate that a city grant a variance
even where the strict application of buildings standards would
deprive the owner of a specific property “of privileges enjoyed by
other property in the vicinity and under identical zoning
classification.” See Gov’t Code § 65906 (providing that variances
“shall be granted only when” such circumstances are present). The
California Supreme Court has long held that the granting of a
variance is discretionary, not mandatory. Metcalf v. Los Angeles
County (1944) 24 Cal.2d 267, 272; Rubin v. Board of Directors of
City of Pasadena (1940) 16 Cal.2d 119, 125-26; Cf. Ideal Boat &
Camper Storage v. County of Alameda (2012) 208 Cal.App.4th 301,
308, 313-20 (upholding denial of variance and permit where
initiative had banned the granting of any non-conforming uses,
including variances).
The General Plan’s Community Form Diagram and Land Use Map
“shall be conformed to the requirements set by” this policy and
other specified requirements set forth elsewhere in the Initiative.
This directive to amend the Community Form Diagram and Land
Use Map to comport with these specific directives seems to come
within the conformity authorization upheld in Pala Band of Mission
Indians v. San Diego County (1997) 54 Cal.App.4th 565, 577 n.8.
See Part IV.A of this Appendix.
4. Amendments regarding building heights, setback ratios,
stepbacks, and building planes (Pages 8-9 of the Initiative)
The Initiative modifies existing General Plan Policy LU-3.2 and adds new
policies LU-3.2.1 through LU-3.2.6 to add provisions relating to building heights, setback
ratios, stepbacks, and building planes. The Initiative states that these modifications are
made “[i]n order to assure the retention and enforcement of City guidelines not currently
included in the General Plan.” Where these new policies apply only to one or more areas
of the City, those areas are indicated below in bold.
New Policy LU-3.2.1 provides that, “[i]n any area where an increase in the
maximum building height is granted in exchange for ground floor retail, no more than 1
square foot of additional floor area above the otherwise-applicable height limit may be
allowed for every 1 square foot of ground floor retail. In any such exchange, all ground
floor retail must be fully accessible to the public during operating hours.” This appears
to be an entirely new policy rather than an existing City guideline. This new policy
would apply to the South Vallco Park Planning Area because that is the only area of
the City where the existing General Plan allows for an increased building height to be
granted in exchange for ground floor retail.
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New Policy LU-3.2.2 provides that “Rooftop mechanical equipment and
utility structures other than cell phone transmission antennae, but no other structures of
building features, may exceed stipulated height limitations shown in Figure LU-1 if they
are enclosed, centrally located on the roof and not visible from adjacent streets.” This
policy essentially specifies what rooftop equipment will be excluded from the City’s
calculation of a buildings height. The non-underlined portion of this policy is set forth as
a footnote in the existing General Plan’s Figure LU-1 (Community Form Diagram).
New Policy LU-3.2.3 adds to the General Plan setback requirements for
both sides of North De Anza Boulevard that are currently included in the North De
Anza Conceptual Plan for the west side of that boulevard only. This policy requires a
minimum of (1) 50 feet of landscaped setback from the curb line; or (2) a minimum
square footage of front yard landscaping equal to what would be achieved under the 50
foot setback, with a minimum setback of 35 feet.
New Policy LU-3.2.4 applies specifically to the Stevens Creek Boulevard
Subarea in the Heart of the City Special Planning Area. The Heart of the City
Specific Plan requires a 26 foot landscape easement from the face of curb and a minimum
35 foot setback from the face of curb (nine feet from the required landscape easement).
The Initiative incorporates this specific plan requirement as a new General Plan policy.
Also, the following existing General Plan standards that appear as footnotes in Figure
LU-1 are added as General Plan policies:
A 1:1 (i.e., 1 foot of setback for every 1 foot of building height) slope line
setback requirement for development along Stevens Creek Boulevard from Highway 85
to Perimeter Road;
A 1.5:1 slope line setback requirement for development on the north side of
Stevens Creek Boulevard from Perimeter Road to the eastern city boundary; (NOTE:
The setback requirement for the segment between Perimeter Road and N. Wolfe Road
would be a new requirement. The setback requirement for the segment from N. Wolfe
Road and the eastern city boundary is an existing requirement.)
A 1:1 slope line setback requirement on the south side of Stevens Creek
Boulevard from Perimeter Road to the eastern City boundary. These are all existing “step
backs” or “setback ratios” already in the General Plan except the portion within the
Vallco Shopping District.
New Policy LU-3.2.5 adopts a 1.5:1 slope line setback requirement for
development of property along Homestead Road between Linnet Lane and Swallow
Drive from the Homestead Road curb line. This same requirement is essentially already
incorporated within the footnotes in Figure LU-1 (Community Form Diagram).
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New Policy LU-3.2.6 converts an existing footnote in Figure LU-1 into a
new policy requiring a 1:1 slope line setback requirement for development of any
property along an arterial/boulevard street, “[u]nless specified” otherwise in the new
policies set forth above.
With respect to the City Center Subarea, the Initiative modifies existing
Strategy LU-16.1.3, Building form. Specifically, it adds the words “step-downs and
setbacks” to define the transition from taller buildings to the scale of the surrounding
area.
5. Amendments regarding the Vallco Shopping District Special
Area. (Pages 9-11 of the Initiative)
This section of the Initiative sets forth major changes to the vision for
revitalizing the Vallco Shopping District Special Area that is set forth in the General Plan
adopted by the City Council in December 2014. Among other things, the Initiative:
removes the language in the City’s goals and policies for calling for
the “complete redevelopment of the existing Vallco Fashion Mall
into a vibrant mixed use ‘town center’” and restates the City’s goal
as to “preserve and enhance the Vallco Shopping District as a local
and regional retail, hotel, dining and entertainment commercial”
destination
prohibits residential and office uses (consistent with the changes to
Table LU-1, discussed above, that deleted the 2,000,000 square feet
of office use and 389 residential units allocated to the site)
restricts building heights to a maximum of 45 feet; and
increases the minimum square footage of retail/dining/entertainment
uses from 600,000 to 1,200,000 square feet.
The Initiative deletes in its entirety several “strategies” reflecting the City
Council’s determination that redevelopment of the area “will require a master developer
in order to remove the obstacles to the development of a cohesive district” and that
“complete redevelopment of the site [is necessary] to ensure that the site can be planned
to carry out the community vision.”
The Initiative amends the existing General Plan policy requiring a Specific
Plan be created prior to any development of the Vallco site to require that such a Specific
Plan also be created prior to any “significant changes in use” on the site.
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It also amends the existing General Plan strategy governing open space at
the Vallco site to delete language calling for a central town square and replace it with
“ground-level open space areas”
6. Amendments regarding North Vallco Park Special Area (Page
11 of Initiative)
The Initiative amends Policy LU-20.3, Building form, for the North Vallco
Park Special Area, changing “should” to “shall” in the following two sentences:
“Buildings should shall transition to fit the scale of the surrounding area. Taller buildings
should shall provide appropriate transitions to fit into the surrounding area.” As detailed
below in Section 4, the Initiative also adds 150 new residential housing units to this
Special Area.
D. Section 4 (Pages 11-15 of the Initiative)
This section of the Initiative amends several provisions in the Housing
Element, which is Chapter 4 of the General Plan. State law requires that every housing
element contain an inventory of potential housing sites that can accommodate the city’s
fair share of regional housing needs.6 The City’s fair share for the current housing
element cycle has been determined to be 1,064 housing units.
The Housing Element contains two lists of “Priority Housing Element
Sites” that can accommodate the City’s share of regional housing needs. Scenario A, the
preferred scenario, includes Vallco as a housing site. Scenario B, the contingency plan to
be used in the event Vallco cannot be rezoned for housing, removes Vallco as a priority
site and transfers the units assigned to Vallco to other sites located in the City’s North
Vallco, Heart of the City, and Homestead Special Areas.
The changes made by this section of the Initiative primarily concern
eliminating Scenario A and replacing it with Scenario B.
1. Amendments regarding “Overview of Available Sites for
Housing” (Page 11 of the Initiative).
The Initiative modifies the language of this section to reflect the
elimination of Scenario A and its replacement with Scenario B.
The Initiative states that the designated sites shown in Scenario B can
accommodate infill development of up to 1,386 housing units rather than the 1,400 units
that could be accommodated in Scenario A. Since Cupertino’s share of the regional
6 Also known as Regional Housing Needs Allocation, or RHNA.
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housing need is 1,064 units, the reduction of 14 units on the designated sites does not
materially affect Cupertino’s ability to meet the regional need.
The Initiative and summarizes these changes as follows:
[T]he City must follow its contingency plan to meet the RHNA, known as
Scenario B and (discussed further in General Plan Appendix B),. Scenario B
would involves the City removing Vallco Shopping District from its
inventory of available sites for housing , adding other mere priority sites to the
inventory, and also increasing the density/allowable units on some of the other
priority sites.
This part of the Initiative eliminates Scenario A from the Housing Element
itself and it also references General Plan Appendix B,S “the Housing Element Technical
Report,” which is part of the General Plan and “provides detailed background
information to meet all requirements of State Housing Element law.” (Page HE-4.)
However, the Initiative does not make conforming changes in Appendix B to be
consistent with the Initiative. Thus, if the Initiative is adopted, Appendix B would
continue to state that Scenario A is the preferred alternative and Scenario B is a
contingency plan. Since this is inconsistent with the changes made to the Housing
Element by the Initiative, the Initiative will create an internal inconsistency in the
General Plan.
However, the Initiative directs the City to revise all other provisions of the
General Plan “to make them conform with the provisions of this Initiative.” In the event
that the Initiative is challenged in court, it is likely that a court would construe this
language as authorizing the City Council to revise the background information contained
in Appendix B to be consistent with the policies established by the Initiative. See Pala
Band of Mission Indians v. San Diego County (1997) 54 Cal.App.4th 565, 577 n.8.
2. Amendments Regarding Figure HE-1, Priority Housing Element
Sites; and Table HE-5, Summary of Priority Housing Sites
(pages 11-14 of the Initiative).
The Initiative deletes from the Housing Element existing Figure HE-1, a
map entitled “Priority Housing Element Sites: Scenario A,” and replaces it with a similar
map (Figure B-8, Appendix B, page B-148) entitled “Priority Housing Element Sites:
Scenario B,” which is to be relabeled Figure HE-1. The Initiative also deletes from the
Housing Element Table HE-5: “Summary of Priority Housing Element Sites to Meet the
RHNA-Scenario A,” and replaces it with a similar table (Appendix B, page B-153)
entitled Table 5.5: “Summary of Priority Housing Sites: Scenario B,” which is to be
relabeled as Table HE-5.
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The Initiative’s replacement of existing Table HE-5 (Scenario A) with a
new Table HE-5(Scenario B) has the following effects:
Total Realistic Capacity. Priority housing sites designated in Scenario A can
realistically accommodate 1,400 residences. Priority sites designated in Scenario B can
realistically accommodate 1,386 residences. Since Cupertino’s share of the regional
housing need totals 1,064 units, the reduction of 14 units by the Initiative does not
materially affect Cupertino’s ability to meet the regional need.
Location of Priority Housing Sites. The Initiative removes the Vallco Shopping District
as a priority housing site. It adds two priority housing sites: Glenbrook Apartments,
located in the Heart of the City Special Area, with the capacity for 58 net new units; and
Homestead Lanes, located in the Homestead Special Area, with the capacity for 132
units. Scenario B also increases the maximum density of The Hamptons, located in the
North Vallco Park Special Area, from 85 units per acre to 99 units per acre and increases
its capacity for net new units from 600 to 750. Scenario B increases the maximum
density of The Oaks Shopping Center from 30 units per acre to 35 units per acre and
increases its capacity from 200 to 235 units.
By special area, the changes are as follows. Scenario B removes 389 units
from the Vallco Shopping District; adds 132 units to the Homestead Special Area; adds
150 units to the North Vallco Park Special Area; and adds 93 units to the Heart of the
City Special Area.
Need for Additional Rezoning or General Plan Amendments. Notes (a) and (b) to
Table 5.5 state that a general plan amendment and zoning change will be needed to allow
increased density on site B1 (The Hamptons) and site B2 (The Oaks).
By replacing Scenario A with Scenario B, the Initiative amends the General
Plan to allow increased density at The Hamptons and at The Oaks. No additional zoning
amendments will be needed. Both sites are zoned P with a residential designation (P
(Res)) for The Hamptons and P(CG, Res) for The Oaks). The P (Planned Development)
zone provides that for sites with a residential designation listed as a Priority Housing Site
in the Housing Element, residential development that does not exceed the number of units
designated for the site is a permitted use. (Cupertino Municipal Code Section
19.80.030(F)(2).) Consequently, no zoning amendment will be required.
Similarly, the Initiative designates the Homestead Lanes site as having a
density of 35 units per acre; no zoning change will be required to increase the density on
the site, despite the statement in footnote (c) of the table. However, because the site’s
existing zoning does not allow residences (zoning of P(CG) and P(Rec, Enter), rezoning
APP-034
Page 15 of 19
will be required to allow residential uses, as discussed further in Sections D.3 and D.4
below.7
Ability to Modify Community Form Diagram Regarding Hamptons, Oaks, and
Homestead Lanes Sites. New Policy LU-3.0 in the Initiative states that the Community
Form Diagram shall be “conformed” to “the density changes identified in Footnotes (a)
through (c) in the new Table HE 5.5 [previously Appendix B Table 5.5].”
Footnotes (a) through (c) refer to The Hamptons, The Oaks, and Homestead
Lanes sites. This provision of new Policy LU-3.0 is apparently intended to allow at least
the density limits shown in the Community Form Diagram to be increased for these three
sites to conform with the densities shown in Scenario B. It is not clear if Policy LU-3.0
was also intended to allow height limits to be increased if necessary to accommodate the
increased densities on the sites. However, because Scenario B in the existing Housing
Element did not propose any height increases to accommodate the increased densities,
most likely it was not intended to allow height increases on these sites.
Other Implications of Designating Sites as Housing Element Sites. If a site is shown
in the Housing Element to accommodate a portion of the City’s regional housing need,
the City must make findings if it proposes to approve a project with fewer units than
shown in the Housing Element. In that case, the City must demonstrate that adequate sites
remain to meet the City’s fair share of the regional need at all income levels, or must
designate alternative sites to meet that need. (Gov’t Code §65863.) If the Initiative is
adopted, this requirement will apply to any proposal to construct or approve fewer units
than are shown in the “Summary of Priority Sites: Scenario B.”
3. Amendments Regarding Implementing Strategies – Strategy 1,
Land Use Policy and Zoning Provisions, fifth bullet point (page
15 of the Initiative).
The Initiative removes all statements from Housing Element Strategy 1
regarding the adoption of a specific plan for the Vallco Shopping District to permit 389
housing units and makes associated changes regarding Scenario B. The changes to this
Strategy have the following effects:
General Plan and Zoning Designations. The Initiative states that the General Plan and
zoning designations will allow the densities shown in Scenario B on the priority housing
sites. As explained in Section D.2 above, it is correct that, if the Initiative is adopted, the
7 Note that the table above does not accurately show the existing zoning of Homestead
Lanes, which is zoned P(CG) and P(Rec, Enter). The existing General Plan permits both
commercial and residential uses (C/R).
APP-035
Page 16 of 19
General Plan and zoning designations will allow the densities shown in Scenario B for
the priority housing sites.
Deletion of Language Describing Scenario B. The Initiative deletes language stating
that Scenario B: (a) adds two additional sites to the inventory (Glenbrook Apartments and
Homestead Lanes) and (b) adds an increased number of permitted units at The Hamptons
and The Oaks. However, the deleted language accurately describes Scenario B.
Removal of Timeline for Rezoning. The Initiative deletes language stating that if the
specific plan and rezoning for Vallco are not adopted within three years of Housing
Element adoption, or by May 31, 2018, the City will hold hearings to consider adoption
of Scenario B. The Initiative states that Homestead Lanes will need to be rezoned to
“allow residential uses by right at a minimum density of 20 units per acre” but contains
no date by which this must be accomplished.
Under State law, all rezonings required to designate adequate housing
element sites must be accomplished “no later than three years after…the date that the
housing element is adopted,” unless a one-year extension is provided. (Gov’t Code §§
65583(c)(1)(A), 65583(f).) The Initiative does not state that the rezoning of Homestead
Lanes will be accomplished within the three- to four-year period required by State law.
(See also discussion of timing in Section D.4 below.)
‘By Right’ Zoning of Homestead Lanes. The Initiative states that any rezoning of
Homestead Lanes will “allow residential uses by right at a minimum density of 20 units
per acre.”
The phrase “use by right” is defined by state law to mean that the City may
not require any discretionary review for residences on the Homestead Lanes site that
would be subject to the California Environmental Quality Act (CEQA). The City may
require design review approval for the residences, but any design review approval is also
not subject to CEQA. (Gov’t Code § 65583.2(i).) This provision means that, after any
required rezoning is completed for Homestead Lanes, the City may only require design
review approval for residences, and residential development will not be subject to CEQA
or other discretionary approvals.
4. Elimination of Table Regarding Strategy 1 (pages 15-16 of the
Initiative).
The Initiative deletes the following table from Strategy 1:
APP-036
Page 17 of 19
Cupertino Department of
Responsible Agencies: Community Development/
Planning Division
Ongoing; Adopt Specific Plan and
rezoning for Vallco by May 31,
Time Frame: 2018; otherwise, conduct public
hearings to consider adoption of
“Scenario B” of sites strategy.
Funding Sources: None required
1,064 units (178 extremely
low-, 178 very low-, 207 low-, Quantified Objectives: 231 moderate- and 270 above
moderate-income units)
State law requires that each of the actions identified in the Housing Element
must have a “timeline for implementation.” (Gov’t Code § 65583(c).) The Housing
Element must also “include an identification of the agencies and officials responsible for
the implementation of the various actions.” (Gov’t Code § 65583(c)(7).) The rezoning of
the Homestead Lanes site must be accomplished “no later than three years after…the date
that the housing element is adopted,” or by May 31, 2018, unless a one-year extension is
provided. (Gov’t Code §§ 65583(c)(1)(A), 65583(f).)
Since the entire table following Strategy 1 has been deleted, the Housing
Element as modified by the Initiative will contain no timeline for implementing any of
the actions contained in Strategy 1, will not identify the agencies and officials responsible
for implementing the actions contained in Strategy 1, and will not commit to rezoning the
Homestead Lanes site by May 31, 2018. Therefore Strategy 1 will not contain all of the
content required by the housing element statute.
The deletion by the Initiative of the table following Strategy 1 also will
remove all quantified objectives for housing at specified income levels. The quantified
objectives included in the deleted table show that Strategy 1 can accommodate the City’s
entire share of the regional need at each income level. The quantified objectives for the
other strategies in the City’s Housing Element do not show how the City will meet the
regional need.
A city cannot take an action inconsistent with, or preempted by, state law.
Cal. Const. Art. XI, § 7. An initiative amendment must conform with all formal
requirements and may not lack any of the content specified by statute for the mandatory
elements of the general plan. See DeVita v. County of Napa (1995) 9 Cal.4th 763, 796
n.12. If a general plan amendment is “substantively deficient, then it may be challenged
APP-037
Page 18 of 19
on that basis.” Id. Substantial compliance with state housing element law “means actual
compliance in respect to the substance essential to every reasonable objective of the
statute,’ as distinguished from ‘mere technical imperfections of form.’” Fonseca v. City
of Gilroy (2007) 148 Cal.App.4th 1174, 1185.
In Friends of Aviara v. City of Carlsbad (2012) 210 Cal.App.4th 1103,
1113, the Court of Appeal ordered Carlsbad to adopt a timeline for completing a program
shown in its housing element but did not require Carlsbad to vacate its adoption of its
housing element. If a court were to find that the absence of a timeline, responsible
agency, and quantified objectives for Strategy 1 are inconsistent with state law, it would
have discretion to mandate a variety of remedies. See DeVita, 9 Cal. 4th at 796 n.12
(citing Concerned Citizens of Calaveras County v. Board of Supervisors (1985) 166
Cal.App.3d 90, 103-04). Under Friends of Aviara, a court would likely order the City to
correct the deficiencies in the Housing Element rather than directing that the entire
Initiative be invalidated.
V. PART V. EXEMPTION FOR CERTAIN PROJECTS (Page 16 of the
Initiative)
This Part of the Initiative states that the Initiative shall not apply to any
development project that has obtained, prior to the Initiative’s effective date, a vested
right pursuant to state law. This Part appears to be designed to insulate the Initiative
from a legal claim that it constitutes an unconstitutional “taking” or otherwise violates the
property owner of a landowner or developer that has already obtained a legal right to
proceed with a specific development project. The courts have found that similar clauses
in other land use initiatives generally preclude any claim that the initiative, on its face,
constitutes an unconstitutional taking in such circumstances. See Shea Homes Limited
Partnership v. Alameda County (2003) 110 Cal.App.4th 1246, 1266-67. Instead, any
development project that obtained a vested right to develop prior to the Initiative’s
effective date would—to the extent of that vested right—be fully exempt from the
Initiative.
VI. PART VI. EFFECTIVE DATE, PRIORITY, AND CONSISTENCY (Page
16 of the Initiative)
This Part of the Initiative states that it shall become effective immediately
upon the certification of the election results. This statement conflicts with the Elections
Code, which provides that an adopted initiative “shall go into effect 10 days after that
date.” Elections Code § 9217. A court would almost certainly conclude that the
Elections Code governs the effective date of the Initiative.
This Part also directs the City to revise and amend all other provisions of
the City’s ordinances, plans, and law, within six months “to make them conform with the
APP-038
Page 19 of 19
provisions of this Initiative” and provides that “until such time” as these changes are
made, “the provisions of this Initiative shall prevail over any conflicting provisions.”
Most land use initiatives contain somewhat similar “conformity” provisions
authorizing and directing the governing city council or board of supervisors to implement
the measure’s terms. As noted above, to the extent that this provision simply directs that
the City implement the Initiative and revise subordinate laws to conform with the General
Plan, it appears to be valid. See Pala Band of Mission Indians v. San Diego County
(1997) 54 Cal.App.4th 565, 577 n.8.
However, to the extent that it elevates the General Plan provisions proposed
by the Initiative over other provisions of the General Plan, a court might find that it
creates an could unlawful precedence clause. See Sierra Club v. Kern County (1981) 126
Cal.App.3d 698, 703-08.
As discussed in Part III(A) of the Report, this conformity provision could
also require the City to amend various provisions of the City’s Zoning Ordinance and
other planning documents.
VII. PART VII. SEVERABILITY (Page 16 of the Initiative)
This Part of the Initiative contains a standard “severability” clause, similar
to those found in most laws. This clause is designed to protect the rest of the Initiative if
one or more provisions are held invalid by a court.
VIII. PART VIII: AMENDMENT OR REPEAL (Page 16 of the Initiative)
This Part of the Initiative states that, except as indicated therein, no
provision of the Initiative may be amended without voter approval. As detailed on pages
6-7 above, this provision appears to apply only to the provisions of the General Plan that
are adopted, amended, or deleted by the Initiative. It does not apply to the development
allocations in Table LU-1 that the Initiative leaves unchanged. The effect of this
language is discussed in Part IV.A. of this Appendix and in Part III.A.6 of the 9212
Report.
764040.9
APP-039
Cupertino 9212 Report Appendix 3
Appendix 3
California Elections Code, Section 9212
(a) During the circulation of the petition, or before taking either action described in subdivisions (a) and
(b) of Section 9214, or Section 9215, the legislative body may refer the proposed initiative measure to any
city agency or agencies for a report on any or all of the following:
(1) Its fiscal impact.
(2) Its effect on the internal consistency of the city's general and specific plans, including the
housing element, the consistency between planning and zoning, and the limitations on city
actions under Section 65008 of the Government Code and Chapters 4.2 (commencing with
Section 65913) and 4.3 (commencing with Section 65915) of Division 1 of Title 7 of the
Government Code.
(3) Its effect on the use of land, the impact on the availability and location of housing, and the
ability of the city to meet its regional housing needs.
(4) Its impact on funding for infrastructure of all types, including, but not limited to,
transportation, schools, parks, and open space. The report may also discuss whether the
measure would be likely to result in increased infrastructure costs or savings, including the
costs of infrastructure maintenance, to current residents and businesses.
(5) Its impact on the community's ability to attract and retain business and employment.
(6) Its impact on the uses of vacant parcels of land.
(7) Its impact on agricultural lands, open space, traffic congestion, existing business districts, and
developed areas designated for revitalization.
(8) Any other matters the legislative body requests to be in the report.
(b) The report shall be presented to the legislative body within the time prescribed by the legislative body,
but no later than 30 days after the elections official certifies to the legislative body the sufficiency of the
petition.
APP-040
Appendix 4
City Council of Cupertino
Resolution No. 16-009
APP-041
RESOLUTION NO. 16-009
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO
DIRECTING CITY STAFF TO PREP ARE A REPORT ON THE EFFECTS OF THE
PROPOSED INITIATIVE ENTITLED, "INITIATIVE AMENDING CUPERTINO'S
GENERAL PLAN TO LIMIT REDEVELOPMENT OF THE V ALLCO SHOPPING
DISTRICT, LIMIT BUILDING HEIGHTS AND LOT COVERAGES IN AREAS
THROUGHOUT THE CITY, ESTABLISH NEW SETBACKS AND BUILDING
PLANES ON MAJOR THOROUGHFARES, AND REQUIRE VOTER APPROVAL
FOR ANY CHANGES TO THESE PROVISIONS" AND TO APPROPRIATE FUNDS
FOR THE PREPARATION OF THE REPORT
WHEREAS, on November 24, 2015, the Cupertino Residents for Sensible
Zoning Action Committee submitted to the City Clerk a Notice of Intent to circulate an
initiative petition ("Initiative") and a request for the City Attorney to prepare the
official ballot title and summary; and
WHEREAS, the City Attorney thereafter prepared the official title and
summary for the Initiative and provided it to the Initiative proponents; and
WHEREAS, Elections Code section 9212 authorizes the City Council to
direct City staff to prepare a report on the impacts of the Initiative, including seven
specified types of impacts as well as on "any other matter" that the City Council
requests to be included in the report; and
WHEREAS, the City Council has determined that such a report would
provide valuable information about the Initiative to the Council and to all interested
residents of the City; and
WHEREAS, this is not a project under provisions and requirements of the
California Environmental Quality Act of 1970, together with related State CEQA
Guidelines (collectively, "CEQA'l in that this is administrative action which does not
involve a direct or reasonably foreseeable indirect impact on the physical environment;
and;
NOW THEREFORE, be it RESOLVED:
1. The City Council directs City staff to:
APP-042
Appendix 5
9212 Environmental Analysis
prepared by
David J. Powers & Associates, Inc.
March 24, 2016
APP-044
9212 Environmental Analysis
Initiative amending Cupertino’s General Plan to limit
redevelopment of the Vallco Shopping District, limit building
heights and lot coverages in areas throughout the City, establish
new setbacks and building planes on major thoroughfares, and
require voter approval for any changes to these provisions
March 24, 2016
Prepared for:
City of Cupertino
Prepared by:
APP-045
TABLE OF CONTENTS
Section 1.0 Introduction .................................................................................................................. 1
Section 2.0 Development Scenarios Analyzed ............................................................................... 3
Section 3.0 Environmental Issues Analyzed ................................................................................... 4
Section 4.0 Environmental Analysis ............................................................................................... 5
4.1 Population and Housing ............................................................................................... 5
4.2 Transportation .............................................................................................................. 7
4.2.1 Transit, Bicycle, and Pedestrian Facilities ...................................................... 7
4.2.2 Roadway Infrastructure ................................................................................... 8
4.2.3 Freeway Infrastructure ..................................................................................... 9
4.3 Public Services ........................................................................................................... 10
4.3.1 Police Services............................................................................................... 10
4.3.2 Fire Services .................................................................................................. 11
4.3.3 School Services ............................................................................................. 12
4.3.4 Library Service .............................................................................................. 13
4.3.5 Parks/Recreation Facilities ............................................................................ 15
4.4 Utilities and Service Systems ..................................................................................... 16
4.4.1 Wastewater Treatment/Sewer System ........................................................... 16
4.4.2 Water ............................................................................................................. 17
4.4.3 Solid Waste .................................................................................................... 19
4.4.4 Energy ........................................................................................................... 20
4.5 Community Form ........................................................................................................ 22
References ..................................................................................................................................... 23
Attachments
Attachment A: Sand Hill Development Company The Hills at Vallco Project Description
Attachment B: The Hills at Vallco Draft EIR Project Description
Attachment C: Referenced General Plan Policies
APP-046
9212 Environmental Analysis 1 City of Cupertino
Cupertino Citizens’ Sensible Growth Initiative March 2016
SECTION 1.0 INTRODUCTION
The Initiative analyzed in this report proposes changes to the City’s existing General Plan, which was
updated and adopted in 2014.1 The General Plan (Community Vision 2015-2040) is the
community’s vision for the City’s future and identifies the maximum development potential for the
City through the year 2040. The General Plan “describes the community’s overall philosophy
regarding the character and accessibility of existing and new neighborhoods and mixed-use
corridors.”2 The General Plan “provides a framework for integrating the aspirations of residents,
businesses, property owners and public officials into a comprehensive strategy for guiding future
development and managing change. It describes long-term goals and guides daily decision making
by the City Council and appointed commissions.”3 The environmental impacts associated with the
General Plan buildout were evaluated in the certified 2014 General Plan Amendment, Housing
Element Update and Associated Rezoning Environmental Impact Report (General Plan EIR).4
Because the Initiative proposes changes to the General Plan, this environmental analysis compares
the changes proposed by the Initiative with what would occur under buildout of the adopted General
Plan. The primary change proposed by the Initiative that would have environmental effects is a
reduction in the amount of total new development allowed. Specifically, the Initiative proposes to
remove the office and residential development allocations currently allowed in the Vallco Shopping
District Special Area (Vallco) by the General Plan. The Initiative would result in a net decrease of
2.0 million square feet of office development and 146 dwelling units city-wide. The Initiative also
proposes to increase the maximum allowable building height in General Plan designated
Neighborhoods (76 percent of the total City land area) from 30 to 45 feet. Most of the Initiative’s
proposed General Plan text changes and revised setback requirements would not result in significant
environmental effects and, therefore, are not discussed further.
1 The official title of the Initiative is: “Initiative amending Cupertino’s General Plan to limit redevelopment of the
Vallco Shopping District, limit building heights and lot coverages in areas throughout the City, establish new
setbacks and building planes on major thoroughfares, and require voter approval for any changes to these
provisions.” The short title used by the Initiative’s proponents is: “Cupertino Citizens’ Sensible Growth Initiative.”
2 City of Cupertino. Community Vision 2015-2040. October 2015. Page I-7.
3 Ibid. Page I-6.
4 The General Plan EIR is the best resource available that evaluates the impacts of the adopted General Plan. The
General Plan EIR analyzed more intense development and buildout of the City than ultimately approved by the City
Council. Because the General Plan EIR analyzed more development than was ultimately approved by the City
Council, the General Plan EIR provides a conservative analysis of the environmental impacts from the buildout of
the adopted General Plan. The General Plan EIR is the best resource available that evaluates the impacts of the
adopted General Plan.
APP-047
9212 Environmental Analysis 2 City of Cupertino
Cupertino Citizens’ Sensible Growth Initiative March 2016
Table 1, below, summarizes the development allowed under the buildout of the General Plan as
currently adopted, and under buildout of the General Plan as amended by the Initiative. The amount
of development currently built and approved in the City is also listed in Table 1 for reference. As
shown in Table 1, as amended by the Initiative, the General Plan would result in a net decrease of
146 dwelling units and 2.0 million square feet of office development city-wide compared to the
adopted General Plan.
Table 1: General Plan Buildout as Adopted and as Amended by the Initiative
Current
Built/Approved
General Plan Buildout
As Adopted As Amended by
the Initiative
Development Buildout
Residential (units) 21,412 23,294 23,148
Office (square feet) 8,916,179 11,470,005 9,470,005
Retail/Commercial (square feet) 3,632,065 4,430,982 4,430,982
Hotel (rooms) 1,116 1,429 1,429
Maximum Building Height in
Neighborhoods (feet) Not applicable 30 45
APP-048
9212 Environmental Analysis 3 City of Cupertino
Cupertino Citizens’ Sensible Growth Initiative March 2016
SECTION 2.0 DEVELOPMENT SCENARIOS ANALYZED
Under the General Plan as amended by the Initiative, two potential scenarios were analyzed: 1)
Vallco as an enhanced mall, which assumes that Vallco is renovated, improved, and successfully
reoccupied; and 2) Vallco with 2016 occupancy, which assumes Vallco remains as it currently exists,
with a 26 percent occupancy rate (the projected occupancy for the mall in April 2016 when
JCPenney closes).
For informational and comparison purposes, a variation on the adopted General Plan scenario, which
assumes implementation of the 2015 application by Sand Hill Property Company (Sand Hill) to
develop The Hills at Vallco project, is discussed. The assumptions for the Sand Hill proposal are
derived from Sand Hill’s 2015 project description and the draft December 2015 project description
prepared for the project Environmental Impact Report (EIR). These project descriptions are included
as Attachment A. This scenario is included in the analysis to provide context as to what the potential
environmental impacts of The Hills at Vallco project (which conforms with the General Plan
assumptions for Vallco) would be, as well as the community benefits that the project would provide.
While the Sand Hill proposal includes development within what is allowed on the site by the General
Plan, it includes 550,000 fewer commercial square feet than the maximum amount allowed by the
General Plan. It is assumed that this 550,000 square feet would be developed elsewhere in the City.
Each development scenario analyzed is summarized in Table 2 below.
All scenarios are compared to the buildout of the adopted General Plan, which is considered the basis
of comparison for the environmental analysis in this 9212 Report.
Table 2: Summary of Development Scenarios
Scenarios Description
1a. Adopted General Plan Buildout of the adopted General Plan
1b. Adopted General Plan
Assuming 2015 Sand Hill
Proposal
Buildout of the adopted General Plan, including the 2015
Sand Hill Property Company’s proposal for the Vallco
Site (The Hills at Vallco)
2a. General Plan with Initiative
Assuming Vallco as Enhanced
Mall
Buildout of the General Plan as amended by the
Initiative, assuming Vallco is renovated, improved, and
successfully occupied
2b. General Plan with Initiative
Assuming Vallco with 2016
Occupancy
Buildout of the General Plan as amended by the
Initiative, assuming Vallco remains largely in its current
state with the projected occupancy of 26 percent.
APP-049
9212 Environmental Analysis 4 City of Cupertino
Cupertino Citizens’ Sensible Growth Initiative March 2016
SECTION 3.0 ENVIRONMENTAL ISSUES ANALYZED
The comparative environmental analysis provided in this report is program level, based on buildout
projections, and primarily qualitative. The environmental issues analyzed for each scenario are:
• Population and Housing – housing, population, employees, and jobs-to-housing ratio;
• Transportation – transit, bicycle, and pedestrian facilities, roadway infrastructure, and
freeway infrastructure;
• Public Services – police, fire, schools, libraries, and parks/recreational facilities; and
• Utilities and Service Systems – wastewater, water, solid waste, and energy
As discussed previously in Sections 1.0 and 2.0, the impacts of each scenario are compared to the
impacts of the buildout of the current General Plan. The primary resource regarding the impacts of
the General Plan buildout is the General Plan EIR.5
The environmental analysis of each development scenario is provided in the following section.
5 See Footnote 3.
APP-050
9212 Environmental Analysis 5 City of Cupertino
Cupertino Citizens’ Sensible Growth Initiative March 2016
SECTION 4.0 ENVIRONMENTAL ANALYSIS
The environmental analysis looks at the effects on population and housing, transportation, public
services, and utilities and service systems on a citywide basis. Impacts specific to the Vallco site are
discussed, as appropriate. All effects are compared to the adopted General Plan buildout. The
impact analysis of the adopted General Plan buildout is based on, and discussed in full in, the
certified General Plan EIR. Referenced General Plan policies are included in Attachment C.
4.1 POPULATION AND HOUSING
A comparison of the housing units, population, jobs, and jobs-to-housing ratios for all scenarios is
provided in Table 3 below.
Adopted General Plan (Scenario 1a): Based on the amount of development allowed in the City
(Table 1), Cupertino would have a population of approximately 68,484 and 51,800 jobs in 2040.
Under the General Plan buildout, the jobs-to-housing ratio would be 2.22. That is, there would be
2.22 jobs per dwelling unit.6
• Scenario 1b (Adopted General Plan Assuming 2015 Sand Hill Proposal): This scenario
would result in the same amount of development citywide as under the buildout of the
adopted General Plan and the same population, jobs, and jobs to housing ratio as the adopted
General Plan (see Scenario 1a above).
• Scenario 2a (General Plan with Initiative Assuming Vallco as Enhanced Mall): This
scenario would result in the same amount of commercial and hotel development citywide as
under the adopted General Plan buildout. Scenario 2a, however, would remove the housing
allocation from Vallco and result in 146 fewer housing units citywide compared to the
General Plan buildout. The net reduction in 146 housing units citywide equates to 429 fewer
residents in the City. This scenario would also remove the office allocation from Vallco,
resulting in a net reduction of 2.0 million square feet of office development (which equates to
6,666 fewer office jobs) citywide compared to the General Plan buildout. Under this
scenario, the City’s jobs-to-housing ratio would be 1.95. There would be fewer jobs within
the City per resident under Scenario 2a compared to Scenario 1a.
• Scenario 2b (General Plan with Initiative Assuming Vallco with 2016 Occupancy): This
scenario would have the same population and housing as Scenario 2a, but would result in
1,969 fewer commercial jobs because the 1.2 million square feet of commercial space at
Vallco is not fully occupied. In April 2016, 313,982 square feet (or 26 percent of the total
1.2 million square feet at Vallco) is projected to be occupied with the remaining square
footage (74 percent) unoccupied. Therefore, the commercial jobs assumed at Vallco was
based on the projected April 2016 occupied square footage. As a result, compared to the
adopted General Plan buildout, Scenario 2b would have 1,969 fewer commercial jobs. Under
this scenario, the City’s jobs-to-housing ratio would be 1.91. There would be fewer jobs
within the City per resident under Scenario 2b compared to Scenario 1a.
6 In general, a jobs/housing imbalance can lead to longer commute trips and related increases in air pollutants and
greenhouse gas emissions.
APP-051
9212 Environmental Analysis 6 City of Cupertino
Cupertino Citizens’ Sensible Growth Initiative March 2016
Table 3: Comparison of Population and Housing
Scenario 1a:
Adopted General
Plan
Scenario 1b:
Adopted General
Plan Assuming
2015 Sand Hill
Proposal
Scenario 2a:
General Plan with
Initiative
Assuming Vallco
as Enhanced Mall
Scenario 2b:
General Plan with
Initiative
Assuming Vallco
with 2016
Occupancy
Housing Units 23,294 23,294 23,148 23,148
Population 7 68,484 68,484 68,055 68,055
Jobs 8 51,800 9 51,800 10 45,13411 44,23712
Jobs-to-
Housing Ratio
2.22 2.22 1.95 1.91
7 Assumes 2.94 persons per household (City of Cupertino. General Plan Amendment, Housing Element Update and
Associated Rezoning EIR. June 18, 2014. Table 4.11-3, footnote b.).
8 Assumes 1 job/300 sf of office; 1 job/450 sf of commercial; 0.3 jobs/hotel room (City of Cupertino. General Plan
Amendment, Housing Element Update and Associated Rezoning EIR. June 18, 2014. Table 4.11-3, footnote c.)
9 11,470,005 office sf/300 = 38,233 office jobs; 4,430,982 commercial sf/450 = 9,847 commercial jobs; 1,429 hotel
rooms/0.3 = 3,720 hotel jobs
10 While the Sand Hill development includes only a portion of the commercial square footage allowed on the Vallco
site in the adopted General Plan, the remaining square footage would be available to be developed elsewhere in the
City. For this reason, the city-wide commercial job assumption remains the same. 11,470,005 office sf/300 =
38,233 office jobs; 4,430,982 commercial sf/450 = 9,847 commercial jobs; 1,429 hotel rooms/0.3 = 3,720 hotel jobs
11 Scenario 2a assumes Vallco as an enhanced mall and all 1.2 million square feet is included in the commercial
employee/jobs calculation. 9,470,000 office sf/300 = 31,567 office jobs; 4,430,982 commercial sf/450 = 9,847
commercial jobs; 1,429 hotel rooms/0.3 = 3,720 hotel jobs
12 While the total amount of commercial development assumed to exist citywide under this scenario would be the
same as under Scenario 1a, only 313,982 square feet (or 26 percent) of the mall is projected to be occupied in 2016
with the remaining square footage unoccupied/vacant. For this reason, the commercial jobs were calculated
assuming 313,982 commercial square feet at Vallco (instead of 1.2 million square feet). 9,470,000 office sf/300 =
31,567 office jobs; 3,544,964 commercial sf/450 = 8,950 commercial jobs; 1,429 hotel rooms/0.3 = 3,720 hotel jobs
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4.2 TRANSPORTATION
4.2.1 Transit, Bicycle, and Pedestrian Facilities
Adopted General Plan (Scenario 1a): New development would be subject to General Plan policies
that ensure adequate public transit, bicycle, and pedestrian facilities are available to the residents of
Cupertino, including the following: M-1.3, M-2.1 through 2.6, M-3.2 through M-3.6, M-3.8 M-4.4,
M-4.7, M-5.2, M-7.1, M-8.1, M-8.4, and M-10.1 (refer to Attachment C for referenced policies). For
example, consistent with General Plan policy M-7.1, new development would be subject to
Transportation Impact Analyses (TIAs) which include evaluating a development’s significant transit,
bicycle, and pedestrian impacts and identifying mitigation measures, as they apply to the new
development. No specific transit, bicycle, or pedestrian improvements were identified or required in
the General Plan EIR to support the buildout of the General Plan.13
• Scenario 1b (Adopted General Plan Assuming 2015 Sand Hill Proposal): The citywide
analysis and impacts for this scenario would be the same as for Scenario 1a.
Vallco-Specific Analysis: Under Scenario 1b, Sand Hill would redevelop Vallco and
implement the following transit, bicycle, and pedestrian improvements separate from the
improvements that would be required by the project TIA:
− Funding a complementary community shuttle in coordination and partnership with the
City, VTA, and corporate employers.
− Improving existing bus stops along the Vallco site frontage.
− Designating the existing bus stop on the north side of Stevens Creek between North Wolfe
Road and Perimeter Road as a “Multi-Modal Transit Center,” which would include an
associated 5,000 square foot building.
− Dedicating curbside areas for commuter shuttles near the intersection of Vallco Parkway
and Perimeter Road.
− Restriping and coloring bicycle lanes on North Wolfe Road from Stevens Creek
Boulevard to I-280.
− Providing new bike trails and Class I-III bikeways following the proposed street grid
pattern on the Vallco site. The proposed bicycle facilities would connect to existing
bikeways on North Wolfe Road, Vallco Parkway, and Stevens Creek Boulevard. Bicycle
parking racks, lockers, and charging areas for electric bicycles are proposed on-site. A
bike hub is proposed on the western portion of the site.
− Providing new pedestrian trails and sidewalks following the proposed street grid pattern
on the Vallco site.
− Improving sidewalks along North Wolfe Road from Stevens Creek Boulevard to I-280 by
installing pedestrian-scale lighting and street furniture.
− Replacing the existing, enclosed bridge over North Wolfe Road with a landscaped
pedestrian bridge.
13 City of Cupertino. General Plan Amendment, Housing Element Update and Associated Rezoning EIR. June 18,
2014. Pages 4.13-64 and 4.13-65.
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Sand Hill also proposed to implement a Transportation Demand Management Program at
Vallco to encourage alternative modes of transportation and include features such as the
following (some of which are also listed above):
− Carpool, carshare, and rideshare;
− Complementary community shuttle in coordination and partnership with the City, VTA,
and corporate employers;
− Bicycle repair stations, hub, parking, and wayfinding features on-site;
− Shower and changing facilities for office employees on the Vallco site;
− A Multi-Modal Transit Center on-site that supports carpool, carshare, and rideshare
programs;
− Electric vehicle parking on-site; and
− Financial incentives for future tenants and employees to walk, bicycle, or take transit.
• Scenario 2a (General Plan with Initiative Assuming Vallco as Enhanced Mall): The
citywide analysis and impacts for this scenario would be the same as for Scenario 1a.
Vallco-Specific Analysis: Under Scenario 2a, renovation and improvement of Vallco would
not likely require a TIA or improvements to existing transit, bicycle, and pedestrian facilities.
• Scenario 2b (General Plan with Initiative Assuming Vallco with 2016 Occupancy): The
citywide analysis and impacts for this scenario would be the same as for Scenario 1a.
Vallco-Specific Analysis: If Vallco remains as it currently exists, no changes/improvements
would be required to the existing transit, bicycle, and pedestrian facilities.
4.2.2 Roadway Infrastructure
Adopted General Plan: Buildout of the General Plan would result in significant congestion at
intersections.14 New development would be subject to General Plan policies that ensure the City’s
roadway infrastructure supports existing and future development, including the following: M-1.2, M-
2.2, M-2.3, M-2.4, M-2.5, M-2.6, M-3.2, M-7.1, and M-8.3 (refer to Attachment C for referenced
policies). For example, consistent with General Plan policy M-7.1, new development would be
subject to a TIA that would evaluate a development’s significant transportation impacts and identify
mitigation measures, as they apply to the new development.
The City will prepare and implement a Transportation Mitigation Fee Program to guarantee funding
for roadway and infrastructure improvements that would mitigate impacts resulting from the buildout
of the General Plan.15 As part of the Transportation Mitigation Fee Program, the City will prepare a
“nexus” study that will serve as the basis for requiring development impact fees. The Transportation
Mitigation Fee will be required to be assessed when there is new construction, an increase in square
footage in an existing building, or the conversion of existing square footage to a more intensive use.
The City is currently in the initial stages of preparing the Transportation Mitigation Fee Program.
14 Ibid. Page 4.13-52.
15 Ibid. Pages 4.13-53 through 4.13-56.
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• Scenario 1b (Adopted General Plan Assuming 2015 Sand Hill Proposal): The citywide
analysis and impacts for this scenario would be the same as for Scenario 1a.
Vallco-Specific Analysis: Under Scenario 1b, redevelopment of Vallco by Sand Hill would
be subject to a TIA that would evaluate the project’s specific roadway infrastructure impacts
and identify mitigation measures, as they applied to the redevelopment project. In addition,
under Scenario 1b, Sand Hill proposed the following roadway infrastructure improvements
separate from improvements that would be required by the project TIA:
− Construct a new signalized intersection on North Wolfe Road between Vallco Parkway
and the I-280 interchange; and
− Modify the existing tunnel under North Wolfe Road to allow east-west access for
emergency and service vehicles.
• Scenario 2a (General Plan with Initiative Assuming Vallco as Enhanced Mall): The
citywide analysis and impacts for this scenario would be the same as for Scenario 1a.
Vallco-Specific Analysis: Under Scenario 2a, renovation and improvement of Vallco would
not likely be subject to a TIA or require improvements to the existing roadway infrastructure.
• Scenario 2b (General Plan with Initiative Assuming Vallco with 2016 Occupancy): The
citywide analysis and impacts for this scenario would be the same as for Scenario 1a.
Vallco-Specific Analysis: If Vallco remains as it currently exists, no changes/improvements
would be required to the existing roadway infrastructure.
4.2.3 Freeway Infrastructure
Adopted General Plan (Scenario 1a): Buildout of the General Plan would result in significant
impacts to freeway segments.16 New development would be subject to General Plan policies,
including policy M-7.1 which requires that new development is subject to TIAs that evaluate a
development’s significant freeway impacts and identify mitigation measures, as they apply to the
new development.
Improvements to freeways are under the jurisdiction of the California Department of Transportation
(Caltrans), not the City of Cupertino. The City will cooperate with Caltrans to identify
improvements to the affected freeway segments and potentially include identified freeway
improvements as part of the City’s Transportation Mitigation Fee Program so that proposed projects
pay their fair-share towards mitigating improvements.17 The City is currently in the initial stages of
preparing the Transportation Mitigation Fee Program.
No specific freeway improvements are identified or required for the buildout of the General Plan.
16 Ibid. Page 4.13-59.
17 Ibid. Page 4.13-59.
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• Scenario 1b (Adopted General Plan Assuming 2015 Sand Hill Proposal): The citywide
analysis and impacts for this scenario would be the same as for Scenario 1a.
Vallco-Specific Analysis: Under Scenario 1b, redevelopment of Vallco by Sand Hill would
be subject to a TIA that would evaluate the project’s specific freeway impacts and identify
mitigation measures, as they applied to the development.
• Scenario 2a (General Plan with Initiative Assuming Vallco as Enhanced Mall): The
citywide analysis and impacts for this scenario would be the same as for Scenario 1a.
Vallco-Specific Analysis: Under Scenario 2a, renovation and improvement of Vallco would
not likely require a TIA, improvements to existing freeway infrastructure, or fees to fund
improvements to freeways.
• Scenario 2b (General Plan with Initiative Assuming Vallco with 2016 Occupancy): The
citywide analysis and impacts for this scenario would be the same as for Scenario 1a.
Vallco-Specific Analysis: If Vallco remains as it currently exists, no TIA,
changes/improvements to the existing freeway infrastructure, or fees to fund improvements to
freeways would be required.
4.3 PUBLIC SERVICES
4.3.1 Police Services
Adopted General Plan (Scenario 1a): Buildout of the General Plan would likely increase the
number of calls for police services; however, buildout of the General Plan would not result in the
need for expansion or addition of police facilities or personnel.18 New development would be subject
to General Plan policies that would ensure adequate police protection services in the City including
HS-4.1, HS-4.2, and HS-4.3 (refer to Attachment C for referenced policies).
The General Plan EIR noted the increase in property tax revenue from buildout of the General Plan
could offset additional costs incurred by the City to increase its service contract with the Sheriff’s
Department, if required.19
• Scenario 1b (Adopted General Plan Assuming 2015 Sand Hill Proposal): The citywide
analysis and impacts for this scenario would be the same as for Scenario 1a.
• Scenario 2a (General Plan with Initiative Assuming Vallco as Enhanced Mall): The
Initiative would result in 146 fewer dwelling units and 2.0 million fewer square feet of office
development citywide compared to Scenario 1a. Less development would require less police
service. The demand for police protection services citywide, therefore, would be
proportionally less under Scenario 2a than Scenario 1a.
18 Ibid. Page 4.12-11.
19 Ibid. Pages 4.12-12 and 4.12-13.
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Vallco-Specific Analysis: The level of demand for police services at the mall under Scenario
2a would be slightly more than under Scenario 2b given the level of occupancy assumed. In
any active shopping mall, theft crimes comprise the majority of incidents, specifically
shoplifting or the left of valuables from patrons’ vehicles. As patrons and activity at Vallco
increases, whether as an enhanced mall (Scenario 2a) or mixed use property (Scenario 1b), it
is anticipated that these instances of crime would increase as well.20
• Scenario 2b (General Plan with Initiative Assuming Vallco with 2016 Occupancy): The
analysis for this scenario would be the same as for Scenario 2a but Vallco will be 26 percent
occupied.
Vallco-Specific Analysis: In contrast to the Vallco-specific analysis for Scenario 2a, vacant
and underutilized properties (such as Vallco with 2016 occupancy) can serve as incubators
for different types of crime such as vandalism, drug sales, or trespass. Vallco under Scenario
2b, therefore, would continue to require polices services (though less populated) to prevent
and respond to crimes.
4.3.2 Fire Services
Adopted General Plan (Scenario 1a): As described in the certified General Plan EIR, the existing
fire protection facilities, equipment, and staff are adequate to accommodate growth anticipated from
the buildout of the General Plan.21 New development would be subject to General Plan policies that
would ensure adequate fire protection in the City including HS-3.1, HS-3.2, HS-3.3, HS-3.4, HS-3.7,
and HS-3.8 (refer to Attachment C for referenced policies) and the City’s Fire Code per Municipal
Code Chapter 16.40.
The certified General Plan EIR noted the increase in property tax revenue from buildout of the
General Plan would result in additional funding being available to the Fire Department for future
growth, if needed.22
• Scenario 1b (Adopted General Plan Assuming 2015 Sand Hill Proposal): The citywide
analysis and impacts for this scenario would be the same as for Scenario 1a.
• Scenario 2a (General Plan with Initiative Assuming Vallco as Enhanced Mall): The
Initiative would result in 146 fewer dwelling units and 2.0 million fewer square feet of office
development citywide compared to Scenario 1a. Less development would require less fire
service. The demand for fire protection services citywide, therefore, would be proportionally
less under Scenario 2a than Scenario 1a.
20 County of Santa Clara, Office of the Sheriff. Cupertino Citizen’s Sensible Growth Initiative. March 1, 2016.
21 City of Cupertino. General Plan Amendment, Housing Element Update and Associated Rezoning EIR. June 18,
2014. Page 4.12-7.
22 Ibid.
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• Scenario 2b (General Plan with Initiative Assuming Vallco with 2016 Occupancy): The
analysis for this scenario would be the same as for Scenario 2a but under this scenario,
Vallco will be 26 percent occupied.
Vallco-Specific Analysis: The level of demand for fire services at the mall under Scenario 2b
could be similar as under Scenario 2a. Vacant and underutilized properties continue to
require fire protection services in response to arson and service calls requiring emergency
medical response.
4.3.3 School Services
Adopted General Plan (Scenario 1a): With the buildout of the General Plan, there would be 1,882
more dwelling units than currently exist. This net increase in dwelling units would generate
approximately 735 new students (471 elementary school students, 132 middle school students, and
132 high school students).23,24
As required by Senate Bill 50, all new development is required to pay school impact fees based on a
development’s square footage. Under SB 50, payment of school impact fees provides full and
complete school facilities mitigation for new development associated with buildout of the General
Plan.
Generally, local schools are directly impacted by residential development in that school-age children
living in the new development would attend the local public schools. Non-residential development
(e.g., commercial or office development) does not directly generate residents or school-aged
children. Residential and non-residential developments, however, are both required to pay school
impact fees.
With the school impact fees collected, local school districts (Cupertino Union School District,
Fremont Unified High School District, and Santa Clara Unified School District) can implement
facility improvements, as necessary. While it is acknowledged that school facility improvements
may occur over the buildout of the General Plan, no specific physical school improvements were
identified or required as part of the General Plan buildout.25
• Scenario 1b (Adopted General Plan Assuming 2015 Sand Hill Proposal): The citywide
analysis and impacts for this scenario would be the same as for Scenario 1a.
Vallco-Specific Analysis: Under Scenario 1b, in addition to paying the required school
impact fees, Sand Hill proposed to provide funding for the following school benefits for
Cupertino Union School District: construct a new 700-student elementary school; replace
all portable/temporary classrooms at Collins Elementary School with permanent classrooms;
23 Elementary and middle school students were estimated using the student generation rates of 0.25 elementary
school students/unit and 0.07 middle school students/unit (City of Cupertino. General Plan Amendment, Housing
Element Update and Associated Rezoning EIR. June 18, 2014. Page 4.12-15, footnotes 24 and 25).
24 High school students were estimated using the student generation rate of 0.07 students/unit (City of Cupertino.
General Plan Amendment, Housing Element Update and Associated Rezoning EIR. June 18, 2014. Page 4.12-16,
footnote 29).
25 City of Cupertino. General Plan Amendment, Housing Element Update and Associated Rezoning EIR. June 18,
2014. Pages 4.12-19 and 4.12-20.
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improve the existing play fields at the former Nan Allan Elementary School and Collins
Elementary School; create and fund of $1 million endowment for the 8th grade Yosemite
Science Program; and pay in lieu parcel tax payments for the non-senior market rate
apartments as though they were separate parcels rather than a single parcel, per current
taxes and parcel taxes as authorized in the future. Sand Hill also proposed to fund the
following benefits for the Fremont Union High School District: construct a 10,000 square
foot High School “Innovation Center” at Vallco that would be available to the High School
District for rent for 34 years and pay in lieu parcel tax payments for the non-senior market
rate apartments as though they were separate parcels rather than a single parcel, per current
taxes and parcel taxes as authorized in the future. 26
• Scenario 2a (General Plan with Initiative Assuming Vallco is Enhanced Mall): As under
Scenario 1a, new development citywide under Scenario 2a would be required to comply with
SB 50 and pay school impact fees. Compared to Scenario 1a, Scenario 2a would result in
146 fewer housing units and 2.0 million fewer square feet of office development citywide.
A reduction in 146 dwelling units citywide would result in 57 fewer students (37 fewer
elementary school students, 10 fewer middle school student, and 10 fewer high school
students) compared to Scenario 1a. The total amount of impact fees collected by the local
school districts would be reduced proportionately by the reduction in development allowed
citywide.
Vallco-Specific Analysis: Under Scenario 2a, no school impact fees would be required for
the renovation and improvement of Vallco.
• Scenario 2b (General Plan with Initiative Assuming Vallco with 2016 Occupancy): The
citywide analysis and impacts for this scenario would be the same as for Scenario 2a.
Vallco-Specific Analysis: Under Scenario 2b, no school impact fees would be required if
Vallco remained in its current state.
4.3.4 Library Service
Adopted General Plan (Scenario 1a): Buildout of the General Plan would result in total of 23,294
dwelling units citywide and a population of 68,484. The buildout of the General Plan would result in
5,533 new residents in the City over the next 25 years, compared to existing conditions (population
of approximately 62,950).27 Only residents of Santa Clara County can apply for a library card. For
example, employees working in Cupertino who are not residents but live elsewhere in Santa Clara
County qualify for a library card.
The analysis in the certified General Plan EIR concluded that the existing employees and library
facilities in the Santa Clara County Library system would be sufficient to accommodate the increased
26 Schoolhouse Services. Enrollment and Fiscal Analysis for the: The Hills at Vallco. February 2016.
27 Existing 2016 population was estimated by multiplying the existing number of dwelling units in the City (21,412)
by 2.94 average persons per household.
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demand in library services from buildout of the General Plan and that no physical expansion of
library facilities is required.28
Note that library services are primarily funded by County property taxes. As properties within the
City redevelop, it is anticipated that the value of the redeveloped properties would increase, thereby
increasing the amount of County property taxes collected and provided to fund library services.
• Scenario 1b (Adopted General Plan Assuming 2015 Sand Hill Proposal): The citywide
analysis and impacts for this scenario would be the same as for Scenario 1a.
Vallco-Specific Analysis: Under Scenario 1b, County property taxes (a portion of which
funds library services) for Vallco would substantially increase compared to existing
conditions (Scenario 2b) due to the redevelopment of the site and the payment of in-lieu
parcel tax payments for the non-senior market rate apartments as though they were separate
parcels rather than a single parcel, per current taxes and parcel taxes as authorized in the
future.
• Scenario 2a (General Plan with Initiative Assuming Vallco as Enhanced Mall): The
Initiative would result in 146 fewer dwelling units citywide, which equates to 429 fewer
residents citywide, compared to Scenario 1a. The demand for library services from residents,
therefore, would be less under Scenario 2a than Scenario 1a.
The Initiative would also result in 2.0 million fewer square feet of office development (which
equates to approximately 6,667 fewer employees) citywide, compared to Scenario 1a. The
demand for library services from office employees under this scenario, therefore, would be
proportionately less compared to Scenario 1a.
Vallco-Specific Analysis: Under Scenario 2a, County property taxes (a portion of which
funds library services) for Vallco would increase compared to existing conditions (Scenario
2b) proportionate to the level of renovation and improvements completed.
• Scenario 2b (General Plan with Initiative Assuming Vallco with 2016 Occupancy): The
citywide analysis for this scenario would be the same as Scenario 2a, but Vallco will be 26
percent occupied.
Vallco-Specific Analysis: The library demand from employees at the mall would be
proportionately less than if all 1.2 million square feet of the mall were occupied (Scenario
2a). There would be no increase in County property taxes (or funding for library services)
from Vallco if it remains in its current state.
28 City of Cupertino. General Plan Amendment, Housing Element Update and Associated Rezoning EIR. June 18,
2014. Page 4.12-24.
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4.3.5 Parks/Recreation Facilities
Adopted General Plan (Scenario 1a): The City has a current population of 62,950 people and
approximately 156 acres29 of parkland in the City, which equates to 2.5 acres of parkland per 1,000
residents. The City is not currently meeting its parkland goal of providing three acres of parkland per
1,000 residents (Policy RPC-1.2).
Buildout of the General Plan would increase the current population by 5,533 people. This net
increase in population would require 5.5 acres of parkland, pursuant to GP Policy RPC-1.2. No
specific parkland or recreational facility improvements were identified are required for the buildout
of the General Plan.
New residential development under the General Plan would be subject to the City’s Municipal Code
which requires residential developers to pay impact fees to maintain existing parks and recreational
facilities (Chapter 14.05 of the Muni Code) and dedicate parkland or pay in-lieu fees to
accommodate and offset their fair share of impacts to parklands (Chapter 18.24 of the Muni Code).
In addition, the General Plan includes policies that would assist the City in meeting its parkland goal
of three acres of parkland per 1,000 residents including RPC-1.1, RPC-1.2, RPC-2.1, RPC-2.5, RPC-
2.3, RPC-2.4, RPC-5.1, RPC-6.2 and RPC-8.1 (refer to Attachment C for referenced policies).
• Scenario 1b (Adopted General Plan Assuming 2015 Sand Hill Proposal): The citywide
analysis and impacts for this scenario would be the same as for Scenario 1a.
Vallco-Specific Analysis: Specifically for the redevelopment of Vallco under Scenario 1b,
Sand Hill would offset the development’s park and recreational needs by paying the required
fees and providing private amenity space, two “town squares” totaling three acres, and a 30-
acre green roof with publically accessible active and passive open spaces. In addition, under
Scenario 1b, Sand Hill proposed to improve the existing play fields at the former Nan Allan
Elementary School and Collins Elementary School.
Pursuant to the City’s Municipal Code, The Hills at Vallco project would be required to
provide a little over four acres of parkland. The proposed town squares and green roof total
approximately 33 acres; therefore, redevelopment of Vallco under Scenario 1b would exceed
the amount of parkland required by the City.
The employees of the proposed office and commercial uses at Vallco under Scenario 1b could
also utilize parks and open space in the City. The City does not, however, have a parkland
goal for employees.
• Scenario 2a (General Plan with Initiative Assuming Vallco as Enhanced Mall): As
under Scenario 1a, new residential development citywide under Scenario 2a would be subject
to park maintenance fees and would be required to dedicate parklands or pay in-lieu fees to
accommodate and offset their fair share of impacts to parkland. New residential development
29 Ibid. Page 4.12-31.
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would also be subject to applicable General Plan policies that assist the City in meeting the
park and recreational needs of the community.
Compared to Scenario 1a, Scenario 2a would result in 146 fewer housing units and 2.0
million fewer square feet of office development citywide. The reduction in development
allowed under Scenario 2a compared to Scenario 1a would result in a proportional reduction
in use of existing park and recreational facilities and a proportional reduction in the need for
new or expanded park and recreational facilities. The park impact fees collected by the City
from new residential development and the dedication of new parkland or payment of in-lieu
fees would be reduced proportionately with the reduction in residential development allowed.
Vallco-Specific Analysis: No park impact fees or dedication of parklands (or payment of in-
lieu fees) would be required if Vallco is renovated and improved because no new residential
development would occur at Vallco.
• Scenario 2b (General Plan with Initiative Assuming Vallco with 2016 Occupancy): The
citywide analysis and impacts for this scenario would be the same as for Scenario 2a, but
Vallco will be 26 percent occupied.
Vallco-Specific Analysis: The park/recreational facility demand from mall employees under
Scenario 2b, therefore, would be proportionately less than if all 1.2 million square feet of the
mall were occupied (Scenario 2a). No park impact fees or dedication of parklands (or
payment of in-lieu fees) would be required if Vallco remains in its current state because no
new residential development would occur at Vallco.
4.4 UTILITIES AND SERVICE SYSTEMS
4.4.1 Wastewater Treatment/Sewer System
Adopted General Plan (Scenario 1a): Buildout of the General Plan would not exceed the design or
permitted capacity of the wastewater treatment plants serving the City (i.e., the San José/Santa Clara
Regional Wastewater Facility and City of Sunnyvale Water Pollution Control Plant). Both plants
have excess capacity and no physical expansion of existing plant facilities are needed.30 In addition,
the City has sufficient wastewater treatment allocations at the plants to serve the buildout of the
General Plan.31
New development under the General Plan may exceed the capacity of the local collection system.
Project-specific review is required when new development is proposed to determine if sufficient
capacity exists to serve the development and improvements to the local collection system may be
required as a condition of approval.
30 Ibid. Pages 4.14-33 through 4.14-41.
31 Cupertino Sanitary District. District Response to your letter dated November 10, 2015. December 8, 2015.
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• Scenario 1b (Adopted General Plan Assuming 2015 Sand Hill Proposal): The citywide
analysis and impacts for this scenario would be the same as for Scenario 1a.
Vallco-Specific Analysis: Under Scenario 1b, preliminary analysis indicated that the Sand
Hill development at Vallco would require the construction of a parallel pipe to the existing
15-inch sewer main in Wolfe Road to provide adequate sewer service to the proposed
development.32 Downstream capacity of the sewer collection system would also need to be
considered and other improvements may be necessary. This improvement would be
constructed as part of the Sand Hill project.
• Scenario 2a (General Plan with Initiative Assuming Vallco as Enhanced Mall): The
Initiative would result in 146 fewer dwelling units and 2.0 million fewer square feet of office
development citywide compared to Scenario 1a. The demand for sewer conveyance and
treatment citywide, therefore, would be less under Scenario 2a than Scenario 1a.
Vallco-Specific Analysis: Under Scenario 2a, no sanitary sewer improvements would be
required at Vallco.
• Scenario 2b (General Plan with Initiative Assuming Vallco with 2016 Occupancy): The
citywide analysis and impacts for this scenario would be the same as Scenario 2a, but Vallco
will be 26 percent occupied.
Vallco-Specific Analysis: The amount of sewage generation from the mall under Scenario 2b
would be proportionately less than if all 1.2 million square feet of the mall were occupied
(Scenario 2a). Under Scenario 2b, no sanitary sewer improvements would be required at
Vallco.
4.4.2 Water
Adopted General Plan (Scenario 1a): There is sufficient water supply from San José Water
Company and CalWater to serve buildout of the General Plan. No new or expanded entitlements are
required. 33 New development under the General Plan would be subject to existing water regulations
that promote water efficiency and conservation including the following:
− Water Conservation Act of 2009
− 2010 California Plumbing Code
− Cupertino’s Landscaping Ordinance
− Cupertino’s Water Conservation Ordinance
− San José Water Company’s, CalWater’s, and Santa Clara Valley Water District’s water
supply and demand management strategies and water shortage contingency plans
− Cupertino Municipal Code (including Green Building Ordinance)
32 Cupertino Sanitary Sewer District. Letter RE: Questions regarding Cupertino Sanitary District Services relative to
Vallco Development. Received November 19, 2015.
33 City of Cupertino. General Plan Amendment, Housing Element Update and Associated Rezoning EIR. June 18,
2014. Page 4.14-22.
APP-063
9212 Environmental Analysis 18 City of Cupertino
Cupertino Citizens’ Sensible Growth Initiative March 2016
In addition, new development would be subject to General Plan policies that ensure adequate water
supply within the City including the following ES-7.1, ES-7.2, ES-7.4, ES-7.5, ES-7.6, ES-7.7, ES-
7.8, ES-7.9, ES-7.10, and ES-7.11 (refer to Attachment C for referenced policies).
• Scenario 1b (Adopted General Plan Assuming 2015 Sand Hill Proposal): The citywide
analysis and impacts for this scenario would be the same as for Scenario 1a.
Vallco-Specific Analysis: Under Scenario 1b, Sand Hill would reroute the existing water
main in North Wolfe Road to Perimeter Road to connect to the existing water main in I-280.
In addition, Sand Hill would provide the benefit of extending the existing City of Sunnyvale
recycled water infrastructure that is located north of the site under I-280, south on North
Wolfe Road to Stevens Creek Boulevard to provide recycled water service to the Vallco site.
The redevelopment of Vallco under Scenario 1b would be LEED Platinum (or equivalent),
which would result in greater water efficiency and reduced water demand than assumed for
the site under Scenario 1a.
• Scenario 2a (General Plan with Initiative Assuming Vallco as Enhanced Mall): The
Initiative would result in 146 fewer dwelling units and 2.0 million fewer office square
footage citywide compared to Scenario 1a. Less development would result in less water
demand. Water demand citywide under Scenario 2a, therefore, would be proportionately less
than under Scenario 1a but that the amount of the reduction would be lessened by the
inefficiencies at Vallco discussed below.
Vallco-Specific Analysis: Scenario 2a assumes Vallco is renovated, improved, and
successfully reoccupied. The water efficiency of the existing mall fixtures are from the water
efficiency standards at the time they were constructed (mid-1970s with tenant improvements
in the early 1990s). It is assumed that the water efficiency of the existing, occupied mall
spaces would not be updated, and that recycled water infrastructure would not be extended
to the site as under Scenario 1b. Any renovations and improvements completed are assumed
to meet current water efficiency standards as assumed under Scenario 1a.
• Scenario 2b (General Plan with Initiative Assuming Vallco with 2016 Occupancy): The
Initiative would result in 146 fewer dwelling units and 2.0 million fewer office square
footage citywide compared to Scenario 1a. Less development would result in less water
demand. Water demand citywide under Scenario 2b, therefore, would be proportionately less
than under Scenario 1a but the amount of the reduction would be lessened by the
inefficiencies at Vallco discussed below.
Vallco-Specific Analysis: Scenario 2b assumes Vallco will be 26 percent occupied. The
water demand at the mall under Scenario 2b, therefore, would be proportionately less than if
all 1.2 million square feet of the mall were occupied (Scenario 2a). Water efficiency of the
existing mall fixtures are from the water efficiency standards at the time they were
constructed (mid-1970s with tenant improvements in the early 1990s). It is assumed that the
water efficiency of the existing, occupied mall spaces would not be updated, and that
recycled water infrastructure would not be extended to the site as under Scenario 1b.
APP-064
9212 Environmental Analysis 19 City of Cupertino
Cupertino Citizens’ Sensible Growth Initiative March 2016
4.4.3 Solid Waste
Adopted General Plan (Scenario 1a): Most of the City’s solid waste is disposed at Newby Island
Sanitary Landfill (NISL). NISL has an estimated closure date of 2025 and the City’s contract with
NISL expires in 2023, therefore, the City must find an alternative landfill to serve the City’s need in
approximately 10 years. The following mitigation measure was identified in the General Plan EIR:
Mitigation Measure UTIL-8: The City shall continue its current recycling ordinances and zero waste
policies in an effort to further increase its diversion rate and lower its per capita disposal rate. In
addition, the City shall monitor solid waste generation volumes in relation to capacities at receiving
landfill sites to ensure that sufficient capacity exists to accommodate future growth. The City shall
seek new landfill sites to replace the Altamont and Newby Island landfills, at such time that these
landfills are closed.
In addition, new development would be subject to applicable General Plan policies that ensure
adequate waste collection and disposal facilities including the following INF-7.1, INF-7.2, INF-7.3,
and INF-8.1 (refer to Attachment C for referenced policies), as well as the City’s Construction and
Demolition Recycling Diversion Requirements (Municipal Code Chapter 16.72).
• Scenario 1b (Adopted General Plan Assuming 2015 Sand Hill Proposal): The analysis
for this scenario would be the same as for Scenario 1a.
Vallco-Specific Analysis: Under Scenario 1b, construction and demolition debris would be
generated from the redevelopment of Vallco. Like all new development citywide, Sand Hill
would be required to meet the City’s Construction and Demolition Recycling Diversion
Requirements, in compliance with Municipal Code Chapter 16.72.
• Scenario 2a (General Plan with Initiative Assuming Vallco as Enhanced Mall): The
Initiative would result in 146 fewer dwelling units and 2.0 million fewer office square
footage citywide compared to Scenario 1a. Less development would result in less solid
waste being generated. Solid waste generation citywide under Scenario 2a, therefore, would
be less than under Scenario 1a. It is anticipated Mitigation Measure UTIL-8 would still be
required under Scenario 2a.
Vallco-Specific Analysis: Under Scenario 2a, renovation and improvement of Vallco would
generate construction and demolition debris. Like all development citywide, the developer
would be required to meet the City’s Construction and Demolition Recycling Diversion
Requirements, in compliance with Municipal Code Chapter 16.72.
• Scenario 2b (General Plan with Initiative Assuming Vallco with 2016 Occupancy): The
analysis for this scenario would be the same as for Scenario 2a but Vallco will be 26 percent
occupied.
Vallco-Specific Analysis: The solid waste generation from the mall under Scenario 2b would
be proportionately less than if all 1.2 million square feet of the mall were occupied (Scenario
2a). No construction or demolition debris would be generated at Vallco under Scenario 2b.
APP-065
9212 Environmental Analysis 20 City of Cupertino
Cupertino Citizens’ Sensible Growth Initiative March 2016
4.4.4 Energy
Adopted General Plan (Scenario 1a): Buildout of the General Plan would not significantly
increase demands for electricity and natural gas generation, transmission, and distribution in the
context of the 70,000 square mile PG&E service territory. No new energy supply facilities or
distribution infrastructure or capacity-enhancing alterations to existing facilities are required to serve
buildout of the General Plan.34
With the implementation of General Plan policies and compliance with the City’s Green Building
Ordinance and CalGreen Building Code, significant energy conservation and savings would be
realized in future new development. Even with the energy saving practices in place, it is possible
that new electrical switches and/or transformers might be required to handle additional loads.
Project-specific review is required when new development is proposed and energy infrastructure
improvements may be required as a condition of approval.
While the buildout of the General Plan would intensify uses and development in the City, it would
not necessarily result in greater energy demands. For example, a mix of land uses in proximity to
each other could result in reduced vehicle miles traveled (i.e., residents could live closer to where
they work or shop).
New development would be subject to applicable General Plan policies that ensure efficient use of
energy resources including M-2.1, M-2.2, M-2.3, M-2.5, M-2.6, M-3.2, M-3.3, M-3.4, M-3.8, M-5.1,
M-9.2, ES-1.1, ES-2.1, and ES-3.1 (refer to Attachment C for referenced policies).
• Scenario 1b (Adopted General Plan Assuming 2015 Sand Hill Proposal): The citywide
analysis and impacts for this scenario would be the same as for Scenario 1a.
Vallco-Specific Analysis: Redevelopment of Vallco under Scenario 1b would be LEED
Platinum (or equivalent), which would result in greater energy efficiency than currently
required of new development by the City and exceed the energy efficiency assumptions for the
site under buildout of the General Plan (Scenario 1a).
• Scenario 2a (General Plan with Initiative Assuming Vallco as Enhanced Mall): The
Initiative would result in 146 fewer dwelling units and 2.0 million fewer office square feet
citywide compared to Scenario 1a. Less development would result in less demand for
electricity and natural gas. Energy demand citywide under Scenario 2a, therefore, would be
proportionately less than under Scenario 1a but the amount of the reduction would be
lessened by the inefficiencies discussed below.
As discussed under Scenario 1a, a mix of land uses in proximity to each other could result in
reduced vehicle miles traveled. The Initiative would result in the reduction in dwelling units
and office space in the City, and specifically would not allow a mix of residential and
employment uses at Vallco, which would increase the City’s overall vehicle miles traveled
because new housing and jobs would be located further from each other.
34 Ibid. Page 4.14-63.
APP-066
9212 Environmental Analysis 21 City of Cupertino
Cupertino Citizens’ Sensible Growth Initiative March 2016
Vallco-Specific Analysis: Scenario 2a assumes Vallco is renovated, improved, and
successfully reoccupied. While Vallco under Scenario 2a would have less development
resulting in less electricity and natural gas demand than what is envisioned for the site under
the adopted General Plan, the reduction in demand would be lessened by the inefficiency of
the existing mall buildings. The energy efficiency of the existing mall buildings are from the
energy/efficiency standards at the time they were constructed (mid-1970s with tenant
improvements in the early 1990s). It is assumed that the energy efficiency of the existing,
occupied mall spaces would not be updated. Any renovations and improvements completed
are assumed to be consistent with applicable General Plan policies and meet current
energy/efficiency standards as assumed under Scenario 1a. As noted above, a single land
use (shopping mall) verses a mixed of land uses at Vallco would increase vehicle miles
traveled citywide.
• Scenario 2b (General Plan with Initiative Assuming Vallco with 2016 Occupancy): The
Initiative would result in 146 fewer dwelling units and 2.0 million fewer square feet of office
development citywide compared to Scenario 1a. Less development would result in less
energy (i.e., electricity and natural gas) demand. Energy demand citywide under Scenario 2a,
therefore, would be proportionately less than under Scenario 1a but that reduction is
minimized by the inefficiency discussed below.
As discussed under Scenario 1a, a mix of land uses in proximity to each other could result in
reduced vehicle miles traveled. The Initiative would result in the reduction in dwelling units
and office space in the City, and specifically would not allow a mix of residential and
employment uses at Vallco, which would increase the City’s overall vehicle miles traveled
because new housing and jobs would be located further from each other.
Vallco-Specific Analysis: Under Scenario 2b, it is assumed that Vallco remains as it
currently exists. The mall will be 26 percent occupied in April 2016. The energy demand
from the mall, therefore, would be proportionately less than if all 1.2 million square feet of
the mall were occupied (Scenario 2a). As under Scenario 2a, however, while the electricity
and natural gas demand of the mall at 26 percent occupied would be less than the demand
than what is envisioned for the site under the adopted General Plan, the reduction would be
lessened by the inefficiency of the existing mall buildings. The energy efficiency of the
existing mall buildings are from the energy/efficiency standards at the time they were
constructed (mid-1970s with tenant improvements in the early 1990s). It is assumed that the
energy efficiency of the existing, occupied mall spaces would not be updated. As noted
above, a single land use (shopping mall) verses a mixed of land uses at Vallco would
increase vehicle miles traveled citywide.
APP-067
9212 Environmental Analysis 22 City of Cupertino
Cupertino Citizens’ Sensible Growth Initiative March 2016
4.5 COMMUNITY FORM
Adopted General Plan (Scenario 1a): The maximum building height for areas outside Special
Areas (i.e., Neighborhoods) in the adopted General Plan is 30 feet. Note that in the General Plan,
Vallco Shopping District is considered a Special Area and not a Neighborhood. Special Areas can
have greater maximum building heights than Neighborhoods, as identified in Figure LU-1 in the
General Plan.
• Scenario 1b (Adopted General Plan Assuming 2015 Sand Hill Proposal): The citywide
analysis and impacts for this scenario would be the same as for Scenario 1a.
• Scenario 2a (General Plan with Initiative Assuming Vallco as Enhanced Mall): Under
the Initiative, the maximum building height in areas outside Special Areas (i.e.,
Neighborhoods) would be increased from 30 to 45 feet. Buildings of 45 feet are typically
three stories tall. The Initiative, therefore, would change the form of future development in
neighborhoods to allow taller buildings, but the maximum square footage allowed on
individual properties would continue to be subject to General Plan allocations and zoning
standards.
• Scenario 2b (General Plan with Initiative Assuming Vallco with 2016 Occupancy): The
citywide analysis and impacts for this scenario would be the same as for Scenario 2a.
APP-068
9212 Environmental Analysis 23 City of Cupertino
Cupertino Citizens’ Sensible Growth Initiative March 2016
REFERENCES
City of Cupertino. Community Vision 2015-2040. October 2015.
City of Cupertino. Draft EIR Project Description. December 8, 2015.
City of Cupertino. General Plan Amendment, Housing Element Update and Associated Rezoning
EIR. June 18, 2014.
County of Santa Clara, Office of the Sheriff. Cupertino Citizen’s Sensible Growth Initiative. March
1, 2016.
Cupertino Sanitary District. District Response to your letter dated November 10, 2015. December 8,
2015.
Cupertino Sanitary Sewer District. Letter RE: Questions regarding Cupertino Sanitary District
Services relative to Vallco Development. Received November 19, 2015.
Sand Hill Development Company. The Hills at Vallco Project Description. September 2015.
Schoolhouse Services. Enrollment and Fiscal Analysis for the: The Hills at Vallco. February 2016.
APP-069
ATTACHMENT A: SAND HILL DEVELOPMENT COMPANY THE HILLS AT VALLCO
PROJECT DESCRIPTION
APP-070
The Hills at Vallco
Project Description
September 2015
APP-071
Table of Contents Page
Executive Summary 1
Property History 3
Community Engagement 5
Mixed-Use Town Center 7
Community Park and Nature Preserve 11
Cupertino Schools 15
Transportation Solutions 16
Entitlements and Approvals 17
Revitalization Approvals 17
Revitalization Objectives 17
General Plan Conformance 19
South Vallco Connectivity Plan Conformance 21
Specific Plan Development 22
Revitalization Plan 23
Land Use 24
Mobility and Parking 27
Connectivity and Public Improvements 31
Utilities 34
Grading and Construction 36
Environmental Sustainability 37
Exhibits 39
Site Map 39
Site Description 40
Block Description 41
Data Table 45
Acknowledgements 48
The Hills at Vallco | Project Description | September 2015
APP-072
The Hills at Vallco | Project Description | September 2015
1
Figure 1. The Hills at Vallco; a mixed-use town center and rooftop open space for Cupertino.
APP-073
The Hills at Vallco | Project Description | September 2015
Every community aspires to have a physical
place that distills and embodies the values of its
past and aspirations for its future. The Hills at
Vallco is just such a place. It will create both a
vibrant mixed-use town center — the social heart
of Cupertino's emerging downtown — and a vast
rooftop open space inspired by the natural
ecology of the Cupertino foothills. The Hills at
Vallco will uniquely connect landscape, buildings
and infrastructure and infuse them with the best
qualities of life in Cupertino.
The Hills at Vallco has been designed to fulfill
Cupertino's General Plan and integrate the
wishes and wisdom of the community to
revitalize Vallco and ensure its success for future
generations. It will create spaces that nurture
vibrancy and encourage relaxation. It will
embrace forward thinking innovation while
respecting historical stewardship. It finds a
balance between a modern need for technology
and eternal need for nature. By celebrating local
strengths, The Hills at Vallco will attain a global
reach.
Sand Hill Property Company, through Vallco
Property Owner, LLC, acquired and unified the
fragmented 50-acre Vallco Shopping Mall site in
November 2014. For the first time in its history,
this consolidation allowed the rare opportunity to
replace the failing, outdated, 40-year old indoor
shopping mall, with a vibrant mixed-use town
center and a community park and nature
preserve. The property owner has selected
internationally renowned design firms Rafael
Viñoly Architects and OLIN Landscape Architects
as master planners to ensure excellence in the
visionary design of The Hills at Vallco.
The Hills at Vallco will include 625,000 square
feet of commercial and civic areas. The design
features family friendly entertainment, retail,
sports and recreation, apartments for multi-
generational living including 680 market rate, 80
below market rate, and 40 senior apartments,
two million square feet of office space serving
incubator, startups, emerging or established
Silicon Valley companies, and supporting public,
residential, and office amenity areas including a
high school Innovation Center and transit center.
The groundbreaking publicly accessible rooftop
open space — 30-acres of landscaping floating
above the buildings — will comprise the largest
green roof in the world and include nearly
four miles of walking/jogging trails, vineyards,
orchards, organic gardens, an amphitheater,
children’s play areas, single level amenities
pavilions, and a refuge for native fauna.
The sustainability goal for the Hills at Vallco is
LEED Platinum certification; globally recognized
as the highest level of environmentally conscious
construction. The monumental scale of the green
roof will improve resource efficiency and mitigate
climate change. It will reduce the urban heat
island effect, improve public health, minimize
water run-off, improve water and air quality,
improve energy efficiency of the buildings, and
promote bio-diversity. In the long run, The Hills at
Vallco ambitiously targets a Net-Zero Water
policy. Water conservation efforts will include the
extension of the recycled water line from
Sunnyvale to The Hills at Vallco, a partnership
with many public stakeholders.
The Hills at Vallco aligns with Cupertino’s
General Plan and framework for the Vallco
Shopping District. The Hills at Vallco will create a
net positive impact on the already world class
schools in Cupertino. It will also provide
significant traffic solutions, including
spearheading the rebuilding of the Wolfe Road/
Hwy. 280 bridge and interchange, the
implementation of intersection and signal timing
improvements, and a complimentary community
shuttle for Cupertino residents.
The majority of the approximately 9,175 parking
spaces will be located underground to maximize
the opportunities for community engagement
throughout the ground level footprint.
The Hills at Vallco represents a nearly $3 billion
investment in the Cupertino community and the
Silicon Valley region. It will produce substantial
net positive impacts on the order of hundreds of
millions of dollars to the City in fees, property
taxes and retail sales taxes.
2
Executive Summary
APP-074
The Hills at Vallco | Project Description | September 2015
In the 1960s, 25 Cupertino families and property
owners came together to launch the overall
scheme for the 300-acre Vallco Park, whose
name was constructed from the first initials of
each of the primary developers: Varian
Associates and the Leonard, Lester, Craft, and
Orlando families. Ten years later, Vallco
Shopping Mall was established as a retail
component within the business park.
Development plans dating from the early 1970s,
document the formation of a mixed-use district,
including offices and the regional shopping mall
that was eventually built. Vallco Shopping Mall
opened under the brand Vallco Fashion Park in
September 1976. At the time of its launch, it was
one of the largest shopping malls in Silicon
Valley, drawing visitors from throughout the
region. Vallco Shopping Mall thrived from the
mid-1970s to the mid-1980s.
Community Pride
Vallco Shopping Mall was once a source of
immense community pride and identity for
Cupertino – a destination with a distinct sense of
place, where a diverse community of people
gathered, connected, and shared a variety of
experiences from shopping to skating, eating to
bowling, or simply strolling. Unfortunately for the
community, for many decades and for many
reasons, Vallco Shopping Mall is no longer that
place of pride.
Challenges
By the mid-1980s, Vallco Shopping Mall had
begun to suffer from an inherent inability to
respond to the ever-changing demands of
consumers and markets. Constraining factors
included:
•Fragmented Vallco ownership between the
mall owner and the three other property
owners – Sears, Macy’s, and JC Penney’s.
•An Operation and Reciprocal Easement
Agreement signed onto by all four owners at
the outset, which handcuffed each party from
pursuing improvements without unanimous
consent.
•Outdated infrastructure in combination with a
confusing and inefficient parking layout which
began to take its toll.
•Demand for mid-market mass merchandizers,
such as those department stores at Vallco
Shopping Mall, began not only to contract, but
to plummet throughout the nation, ultimately
resulting in the closure of thousands what had
been anchor stores for malls.
•Regional competition from Westfield’s Valley
Fair and Stanford Shopping Center, other sub-
regional malls, and revitalized downtowns
began to shift shoppers away from Vallco
Shopping Mall.
Regional Competition
Since the 1980s, regional competition has only
increased. Two of the top performing, super-
regional malls in the San Francisco Bay Area
located near Vallco Shopping Mall are the
Stanford Shopping Center and Westfield's Valley
Fair. Today, both of them are thriving and
expanding. Not only is it difficult for the flagship
retailers who have become tenants at these two
malls to justify an additional location at Vallco
Shopping Mall, many are prohibited from doing
so due to lease radius restrictions. Vallco
Shopping Mall must also compete with more than
a dozen other shopping districts, revitalized malls
and walkable downtown neighborhoods including
Palo Alto, Los Gatos, Mountain View, Los Altos,
and Campbell.
Failed Redevelopment Efforts
Vallco Shopping Mall ownership has turned over
many times since the original developers, with
multiple foreclosures and a bankruptcy,
staggered between efforts to redevelop the aging
mall. Occupancy began to deteriorate at an
accelerated rate in the 1990s. Mall tenancy
continued its steady decline into the mid-2000s.
3
Property History
APP-075
The Hills at Vallco | Project Description | September 2015
In September 2009, a Vietnamese food
processing company purchased the mall. As
absentee speculators, they did nothing to
reinvest in the mall, and so the mall languished
further.
By 2014, Vallco Shopping Mall had distinguished
itself as the most delinquent property tax payer in
Cupertino with over $7 million in unpaid back
taxes, due to increasing operating losses year
over year. In 2015, occupancy had dwindled to
the point where vacant and papered storefronts
outnumbered active storefronts throughout the
mall.
A handful of mall tenants including AMC Theater,
have continued to perform well even throughout
Vallco Shopping Mall's leanest years. They
cannot, however, be expected to support 1.2
million square feet of obsolete retail space.
General Plan Vision for Revitalization of the
Vallco Shopping Mall
The City of Cupertino has long recognized the
failures of Vallco Shopping Mall, and has spent
the past several years working with the
community to establish a new vision for
revitalizing it.
In December 2014, the City Council adopted new
General Plan goals, policies and strategies
specifically relating to the Vallco Shopping
District Special Area, within which Vallco
Shopping Mall is located. The City vision outlined
a complete revitalization of Vallco Shopping Mall
site into a "vibrant mixed-use town center” that is
a focal point for regional visitors and the
community. This new district will become a
destination for shopping, dining and
entertainment in the City.
Unified Ownership
To realize this community vision, the General
Plan “requires a master developer in order to
remove the obstacles to the development of a
cohesive district with the highest levels of urban
design.”
In December 2014, after years of negotiations
with multiple ownership groups, Sand Hill
Property Company, who has been an integral
part of the community for 20 years, was able to
assemble all 50 acres of Vallco Shopping Mall - a
first in the mall's 40 years history. Single
ownership will finally allow the implementation of
a unified vision to revitalize Vallco. The property
owner is making an investment in Cupertino to
both own and operate the property for multiple
generations.
The company has experience with numerous
properties throughout Cupertino, including retail,
residential, offices, and hotel. All four of these
uses will be on display at Main Street Cupertino
– a multi-year collaboration with the City of
Cupertino and the community currently under
construction on approximately 18 acres, which
the property owner will continue to own and
operate once completed.
Within a block of this successful collaboration,
the failed Vallco Shopping Mall will give way to a
re-envisioned Vallco, called The Hills at Vallco.
4
APP-076
The Hills at Vallco | Project Description | September 2015
5
Chime In…
I have the following questions or comments:
n I support a revitalized Vallco with a mix of retail, housing and office
n Please keep me informed
Name
Address
City State Zip Code
Phone Email
I want to share my thoughts on revitalizing VallcoYES!
Visit us online at VallcoVision.com or email info@vallcovision.com
Figure 2. 50,000 response card invitations were sent out in March and April 2015.
APP-077
The Hills at Vallco | Project Description | September 2015
In February 2015, the property owner initiated an
unprecedented and comprehensive community
engagement process with Cupertino residents
encouraging them to “Chime In” on a future
vision for a revitalized Vallco, also launching the
website Vallco Vision to serve as a community
portal for idea gathering.
In March 2015, and again in April, the property
owner sent 25,000 response card invitations to
every home and business in Cupertino, asking
community members to share their ideas and
wishes for what a new Vallco could be.
Throughout April, May, and June 2015, the
property owner hosted more than 20 community
meetings, open houses and presentations to
collect community feedback. Residents shared
what they liked and didn't like about the current
mall, and what they wanted to see incorporated
into a revitalized Vallco. They also had an
opportunity to address ancillary concerns in the
community.
In July 2015, the property owner sent a four-
page report summarizing the comments gathered
to each of the 25,000 homes and business in
Cupertino. The property owner expressed
gratitude for the opportunity to meet personally
with more than 1,000 Cupertino residents and
receive more than 3,800 ideas from everyone
who “Chimed In”. The property owner was
encouraged by the community’s willingness to
engage in dialogue and inspired by the quality of
ideas expressed. The major themes revealed
during the first six months of community
engagement included:
Offer Entertainment and Family Friendly Retail
Top requests were to keep and improve upon
well-loved and successful community
touchstones; the AMC Theater, bowling alley,
and ice rink, as well as to improve upon current
fitness uses, and attract and retain more family
friendly businesses.
Attract New and Diverse Restaurants
More than 50 restaurant recommendations were
received, ranging from requests to keep a few
popular establishments, to adding outdoor dining
options, and hosting a farmers’ market for
Cupertino.
Increase Open Space
The current Vallco Shopping Mall is composed of
fortress type buildings with no connection to the
outside. Residents strongly agreed that any new
project should offer exterior landscaped
gathering spaces open to the community,
particularly given that this part of Cupertino is
below par in overall green space. Residents
wanted to keep as many existing healthy trees
as possible on the perimeter of the site.
Provide Traffic Solutions
Traffic improvements including rebuilding and
widening the Wolfe Road/Hwy. 280 interchange,
a community shuttle, and improved biking and
walking options to and through the revitalized
shopping district were requested.
Protect Cupertino's World-Class Schools
Suggestions were given by the community that
any revitalization contribute to making Cupertino
schools even better by building educational
facilities on site, by replacing outdated portable
classrooms with new permanent ones, by
upgrading existing school facilities, or by building
a new school and/or directly funding existing
programs.
Create a New Town Center
Many wonderful memories of the Vallco
Shopping Mall when it was “the” community-
gathering place during its hey-day were shared.
Many observed that Cupertino has never truly
had a downtown, and suggested that a
revitalized Vallco would be the ideal place to
create one.
6
Community Engagement
APP-078
The Hills at Vallco | Project Description | September 2015
7
Figure 4. Town Square West at twilight — the active heart of The Hills at Vallco in Cupertino.
Figure 3. A variety of retail, dining, and entertainment venues are connected through walkable streets.
APP-079
The Hills at Vallco | Project Description | September 2015
Synthesizing the community input and the
aspirations of the General Plan into a mixed-use
town center vision, The Hills at Vallco is
conceived around the core elements essential for
creating a vibrant community life – a program
that begins with the ambience of the streets and
public squares, and extends throughout all
venues; supporting real connections between
residents, employees, businesses, students and
visitors.
The Hills at Vallco will elevate the quality of
community life in Cupertino and beyond. It will
facilitate healthy lifestyles by creating a mix of
thoughtfully designed public places of various
scales: intimate enclaves, broad public squares,
and generous community venues that support a
year-round calendar of experiences, exhibits and
events. It will include the amenities of a market
hall, movie theater, and recreational venues. The
Hills at Vallco will provide walkable streets that
allow for the serendipity of social encounters,
places to sit and take in the day, settings that
accommodate all of the community: families,
friends, and individuals of all ages.
Town Center with Heart and Soul
The Hills at Vallco offers two interconnected town
squares with two distinct experiences. Town
Square West and Town Square East,to be the
heart and soul of the town center. These are
located on the west side and east side of Wolfe
Road.
As the active heart of public life, Town Square
West will be the focal point of the retail,
entertainment, and residential district, and
welcome Cupertino residents, employees, and
visitors to an actively programmed and flexible
green space that is both civic amenity and local
park. As the heart, it will activate, circulate and
energize the life of the entire city. In the center of
Town Square West is gently sloping lawn that will
flow from the north side of the space down to the
South creating a lush gathering space for
relaxation and for outdoor concerts, cultural
events, outdoor performances and movies. The
lawn will connect to the below-grade parking
garage, providing a direct visual link and path for
visitors arriving by car and illuminating the
garage with light and views of a rich green
landscape. Surrounding the lawn, hardscape
terraces shaded by large plane trees that can
host large public events and festivals or serve as
exterior dining or social space, will make the
Town Square West a vibrant destination and
community activator throughout the day and into
the evening.
As a quiet compliment to the active heart of Town
Square West, Town Square East has been
designed as a place to nourish the soul. Town
Square East is a serene and contemplative
green space that will serve as central focal point
and a shared exterior amenity for the mixed-use
retail and office district. Along the central axis of
Town Square East will be a linear low flow water
feature designed for use with recycled water or
other seasonal non-potable sources. It will be a
thin sheet of moving water framed by large
canopy trees, will create a cool, quiet oasis
within the town center. Surrounding this
sculptural water element and formal tree
geometry, informal plantings of olive trees and
grasses will provide a beautiful texture and
muted color palette that move in the breeze,
creating a sound buffer to the noise of the city.
Entertainment, Recreation and Retail
Promenade
The successful existing community touchstones
including the AMC Theater, bowling alley, ice
rink, and fitness center, will be co-located to the
northwestern corner of The Hills at Vallco.
Freshly designed as an integrated multilevel
complex, the south facing facade of this block
will be embellished with terraced gardens and
dining patios looking out over the open air
activities of Town Square West.
Extending south from the entertainment and
recreation venues to Stevens Creek Boulevard,
the family friendly district will be designed as a
nine-block retail promenade that makes a loop to
8
Mixed-Use Town Center
APP-080
The Hills at Vallco | Project Description | September 2015
and from Stevens Creek Boulevard, where the
new transit center and community shuttle stop
will be located. Two parallel tree-lined avenues
supporting this shopping loop, lined with a
mixture of unique boutiques and national brand
stores, will create an experience district
differentiated from the surrounding shopping
malls. Stores will be curated from around the
country with Cupertino's lifestyle in mind. The
retail promenade will have a genuine downtown
atmosphere, supported by upper level residential
buildings that create a unique sense of place and
create scale.
The retail promenade is a pedestrian-focused
circulation zone that envelopes the west side
ground-level retail into an iconic shopping
district, providing clear wayfinding and access
from the surrounding streets and parking garage.
The retail promenade is designed to enhance the
retail shopping experience by providing a vibrant
and comfortable space for walking, sitting, eating
and socializing throughout the day and evening.
This circulation space will have a rich texture of
paving patterns, lighting, and outdoor spaces.
Large canopy trees are limbed up to enhance
views to the storefronts and provide dappled light
and shade along the sidewalks and seating
areas.
Along Stevens Creek Boulevard, glass facades
of multi-level spaces will animate The Hills at
Vallco with a line-up of leisure, fashion and
technology flagship stores that epitomize the
lifestyle of Cupertino, and identify it as a place
that celebrates recreational, casual and creative
activities.
Market Hall
The chefs, restaurants, grocery stores, markets
and farms of the San Francisco Bay Area have
pioneered the celebration of fresh, local and
organic food, and spawned a food movement
known internationally as "California Cuisine," and
have linked farm to table dining, specifically to
this region. The Hills at Vallco will capture this
spirit by introducing Market Hall; a food hall with
local, artisan offerings. Located at the eastern
edge of the retail district, Market Hall will provide
fresh and healthy food with broad economic
access, community gardens and urban
agriculture to educate the community on how to
meet the basic dietary needs for active lives.
Market Hall will act as a community amenity and
meeting place, populated in the mornings with
people stopping in for coffee and fresh baked
goods or market style breakfast; at lunch by
residents and the local work force for a mix of
food stand offerings; and at regular intervals for
regional farmers market offerings.
Active Public Streets
The Hills at Vallco will activate today's car-
dominated streets - Stevens Creek Boulevard,
Wolfe Road, and Vallco Parkway - with enhanced
sidewalks, bicycle lanes, and transit facilities.
Sidewalks will be designed to make walking
easier and more attractive, allowing neighbors,
visitors, and employees to meet and interact on
their walks, and to foster economic activity, such
as window shopping and sidewalk cafes. The
Hills at Vallco preserves the healthy existing
street trees at all edges of the site that serve as
a buffer to the Portal Neighborhood residences
to the West and to enhance Cupertino's urban
tree cover and associated ecosystem services.
The perimeter streetscapes will be enhanced to
create landscapes and a comfortable pedestrian
and bike-friendly realm and to provide clear, safe
connections to Main Street Cupertino and other
destinations in South Vallco Park Gateway.
The existing site slopes gently from Stevens
Creek Boulevard towards Hwy. 280 to the North.
New buildings in The Hills at Vallco will step
down to echo the natural topography of the site.
Wolfe Road Crossing
Town Square East and Town Square West are
visually and physically linked by a linear garden
space that spans Wolfe Road and connects the
mezzanine levels of the surrounding buildings. In
conjunction with the floating roof, this creates a
gateway for Cupertino.
9
APP-081
The Hills at Vallco | Project Description | September 2015
Community Scale
The wavelike silhouette of the Hills at Vallco will
minimize any perception of mass and bulk of the
town center in response to the scale of the
existing City context. Not only does the rooftop
landscape blend into the existing trees around
the site, but also the setbacks, street level
landscape, and varying building heights will
reduce the visual impact on the adjacent
neighborhoods and public streets.
The western edge, where the roof meets the
street at Stevens Creek Boulevard thereby
providing a trail head to access the public park
and nature preserve, will begin at grade level,
respecting the residential scale and privacy of
the Portal Neighborhood. The roof will rise at the
center of the site west of Wolfe Road, staying
under the existing building height of the existing
AMC Theater. The roof will lower down and cross
Wolfe Road to unify the 30-acre open space at
roof level and create a dynamic Wolfe Road
gateway and entrance for Cupertino at street
level while also addressing the arrival and
departure from Hwy. 280.
The buildings east of Wolfe Road will step up
towards the east side of The Hills at Vallco along
Hwy. 280 and Perimeter Road.
The Stevens Creek Boulevard frontage will
conform with the wide landscape easement
requirement of the Heart of the City Special Area.
This will create a generous pedestrian entrance
plaza, provide a well located transit center, and
respect the existing ash grove.
10
Figure 5: The wavelike shape of the rooftop open space is responding to Cupertino's community scale.
APP-082
The Hills at Vallco | Project Description | September 2015
11
Figure 7. Vineyards, oak, meadow, and chaparral landscapes on the rooftops of The Hills at Vallco.
Figure 6. Rooftop community park of The Hills at Vallco looking south towards the Cupertino foothills.
APP-083
The Hills at Vallco | Project Description | September 2015
The landscape design for The Hills at Vallco will
be based on the native ecologies of Santa Clara
Valley which allows to provide a range of natural
ecosystems within an urban context and be
resilient to challenging climate conditions such
as extended periods of drought and increasing
global temperatures.
The Hills at Vallco will provide approximately 30
acres of open space and landscape floating over
building structures, layering on top of a vibrant,
mixed-use town center that replaces the existing
50 acres of primarily impervious surface. In
addition to protecting the majority of existing
trees on Wolfe Road, Stevens Creek Boulevard,
and the Perimeter Road landscaped buffer, The
Hills at Vallco will be adding approximately 900
trees to the site which are either native or
drought tolerant species.
The plant palette has been selected to thrive with
little or no irrigation. Small areas of planting with
specific programmatic uses or historical
references such as lawns and orchards will be
maintained using only non-potable water sources
such as municipal recycled water or on-site
greywater and stormwater capture and reuse.
The Hills at Vallco will be a high performance
landscape and model of green infrastructure that
creates a highly sustainable center for civic,
social, and community life and will serve as a
model of transformative twenty-first century
sustainable growth.
Flowing over the town center will be an
approximately 30-acre community park and
nature preserve. This spectacular landscape will
interweave social and natural systems to create
a one-of-a kind green amenity in Cupertino. The
community park and nature preserve will
immerse visitors in the naturally occurring oak,
meadow, and chaparral landscapes of Santa
Clara Valley and provide an uninterrupted visual
connection to the surrounding mountain ranges
of San Francisco Bay. The rooftop open space
will host a diverse set of programmatic uses
ranging from active public spaces for community
gathering, civic engagement, public
performance, cultural festival and casual dining,
to quiet intimate spaces for relaxation, to a
nature preserve providing habitat for local flora
and fauna such as songbirds migrating along the
Pacific Flyway.
Vegetation from the Oak, Meadow, and
Chaparral ecotones is ideally suited to the light-
weight and free draining soils of a landscape
over structure. The plant species that will make
up the roof landscape are characterized by
drought-hardy trees, woody shrubs and grass
species such as Coast Live Oak, Valley Oak,
California Black Oak, California Sycamore,
California Buckeye, Western Redbud, Monterey
Cypress, and Torrey Pine, Ceanothus,
Manzanita, Needlegrass, Creeping Wild Rye and
native sedges. These are plantings that thrive on
summer drought and occasional winter rains.
The community park and nature preserve are
organized around several major spaces:
Oak Grove
The oak grove will be located on the western
edge of the site provides at-grade public
pedestrian access to the community park and
nature preserve from Stevens Creek Boulevard.
At this location the roof meets the street to create
a convenient and accessible trail connection to
the roof at ground level. This edge will be planted
with large canopy trees to create an iconic
gateway space and to serve as visual buffer to
the adjacent private residential neighborhood.
This public landscape will be a serene retreat,
providing a visual respite from the City and
encouraging walking and hiking amongst the
native oaks and grasses of the region.
Community Activities
The community activities will be located in the
center of the community park and provide a
concentration of active programmatic uses
including a large play space and garden for
children, indoor and outdoor community meeting
12
Community Park and Nature Preserve
APP-084
The Hills at Vallco | Project Description | September 2015
spaces, amenities such as a cafe and wine bar,
and amphitheater and performance spaces.
Adjacent to the community activities will be two
areas that celebrate the region's unique cultural
and historic agricultural landscapes — the
vineyards and the orchards. Santa Clara Valley
lies between Santa Cruz Mountains and Diablo
Range which shelter the area from the cold,
damp San Francisco Bay climate creating the
perfect Mediterranean environment for the
orchards and vineyards that emerged in the late
nineteenth century.
Vineyards
The vineyards will provide a stunning visual form
as it undulates along the slopes of the roof. This
educational landscape will engage visitors with
walking trails and gathering and performance
spaces set within the vines.
Orchards
The orchards will showcase fruit trees that recall
the turn of the century agricultural forms and
colors of Santa Clara Valley.
The orchard and vineyard will reconnect
residents to the seasonal cycles of agriculture,
provide educational and seasonal family friendly
activities, and provide meaningful context for the
role it played in the early economic and social life
of Santa Clara Valley. From the first white and
pink flush of flowering apricot and cherry trees to
the harvesting of fruits and grapes and brilliant
fall colors, these productive landscapes will
become spaces of annual celebration and
gathering, creating lasting memories for visitors
of all ages.
Nature Preserve
The rooftop open space of The Hills at Vallco will
be the largest public-access landscape ever built
over structure and its establishment represents a
unique opportunity to infuse a large natural
system in an urban context for the mutual benefit
and improved health of people and the
environment. The large area on the eastern roof
will provide a significant number of ecosystems
services including improved biodiversity and
habitat for migratory birds and pollinating insects,
improved air quality, enhanced storm water
management, reducing carbon emissions by
reducing the urban heat island effect, and
numerous opportunities for physical health
benefits from exercise and interaction with
nature.
13
APP-085
The Hills at Vallco | Project Description | September 2015
14
Figure 8. Conceptual landscape plan for the 30-acre community park and nature preserve.
APP-086
The Hills at Vallco | Project Description | September 2015
The property owner proposes to establish and
improve quality education facilities and programs
for both current students attending Cupertino
K-12 schools and for new students residing in
The Hills at Vallco. While state law limits fees a
school district can charge to mitigate school
impacts, the property owner will pay more than is
required to not only protect, but improve, upon
the educational successes of Cupertino Union
and Fremont Union High School Districts.
In collaboration with both districts, the property
owner proposes a net positive impact to more
than mitigate any potential impacts related to an
increase in overall student population from the
project, by funding and delivering the following
unprecedented facilities and programs:
Cupertino Union School District K-8
Educational Facilities, Programs and Funding
•Ground-up construction of a new 700-student
elementary school at the former site of the Nan
Allen Elementary School.
•Replacement of all portable/temporary
classrooms at Collins Elementary School with
permanent classrooms.
•Improvement and expansion of school playing
fields at the former Nan Allen and Collins
Elementary School sites.
•Creation and funding of a $1 million endowment
for the 8th grade Yosemite Science Program.
•Payment of the full statutory requirement “Level
1 Fee” obligation.
The new school will not only accommodate new
students from The Hills at Vallco, but provide
classrooms for hundreds of existing students, and
relieve pressure from existing schools.
The property owner proposes a total education
facilities and programs investment for Cupertino
Union School District of approximately $20
million, roughly 10 times the amount required by
Senate Bill 50.
Fremont Union High School District 9-12
Facilities, Programs and Funding
A new 10,000 square foot, turn-key Innovation
Center at The Hills at Vallco will be delivered to
Fremont Union High School District. This flexible,
multi-use space will be used by district high
school students to build projects together while
collaborating with members of the greater
community. The Innovation Center will serve as
an incubator for student inventions, plans, and
the seeds of bold, new ideas that are increasingly
indigenous to the Silicon Valley with programs
and facilities including:
•Student led businesses incubator
•Work-based learning initiatives hub
•Robotics team competition arena
•Multi-disciplinary student maker creativity
brainstorming and prototyping space
•Centrally located classroom for students from
all five campuses within the district.
•Performance space.
•An exhibition space.
•Charitable lease of the Innovation Center for a
term of 34 years at a nominal rent of $1 per
year.
• Payment of the full statutory requirement “Level
1 Fee” obligation.
The property owner proposes a total education
facilities and programs investment for Fremont
Union High School District of approximately $20
million, approximately 20 times the amount
required by Senate Bill 50.
15
Cupertino Schools
APP-087
The Hills at Vallco | Project Description | September 2015
The multi-generational commitment of The Hills
at Vallco to be a vibrant mixed-use town center
and amenity for the community at large well into
the future, requires forward thinking solutions to
problems yet unseen, but anticipated. Therefore,
the Hills at Vallco, will take proactive measures
to incorporate transportation solutions for
existing Cupertino residents and employees from
the outset along key transportation corridors and
Hwy. 280 including the following:
Improve Wolfe Road/Hwy. 280 Interchange
The Hills at Vallco will spearhead the widening
and rebuilding of the Wolfe Road/Hwy. 280
bridge and interchange. This will include
improvements to the pedestrian and bicycle
connections across Hwy. 280 that connect North
Vallco, where The Hamptons and Apple Campus
2 are located, with South Vallco, where The Hills
of Vallco and Main Street Cupertino are located.
Improve Wolfe Road Intersections
A new signalized intersection is proposed along
Wolfe Road between Vallco Parkway and the
Hwy. 280 interchange. This intersection is
intended to facilitate vehicular access to and
from the east and west side of The Hills at
Vallco. This intersection will improve public
access to The Hills at Vallco by replacing the
outdated existing on and off ramps from Wolfe
Road to Perimeter Road.
This intersection improvement will also modify
the existing tunnel under Wolfe Road to allow
east-west access for fire, emergency, and
service vehicles, which does not exist today due
to the low tunnel height.
In addition, this new intersection will provide a
new and safe bicycle and pedestrian crossing at
grade across Wolfe Road to create strong
walkable connections to integrate the east and
west sides of the emerging downtown at South
Vallco.
Included as these Wolfe Road improvements, will
be additional traffic signal timing upgrades
between Stevens Creek Boulevard and Hwy.
280, to improve the vehicular traffic flow on
Wolfe Road.
Introduce a Community Shuttle
The Hills at Vallco will lead a partnership with the
City of Cupertino, VTA, and corporate employers
to fund a complimentary community shuttle for
Cupertino residents and employees, to connect
numerous destinations within the community
including the library, Civic Center, Memorial Park,
De Anza College, one or more high schools, the
Apple campuses, and more. This will improve
residents’ access to key community destinations,
while giving office workers exposure to
businesses in the community.
Establish a Multi-Modal Transit Center
The Hills at Vallco will be designed with the north
side of Stevens Creek Boulevard between Wolfe
Road and Perimeter Road as transit center
location. The complimentary community shuttle,
VTA local and express buses, future Bus Rapid
Transit, corporate shuttles, and sharing economy
transportation services will all make regular stops
at the transit center. The transit center will
specifically accommodate the existing VTA’s
existing Stevens Creek Boulevard bus lines 23
and 323. The Hills at Vallco will have an entrance
plaza along Stevens Creek Boulevard that will
accommodate pedestrian access to a curbside
station.
Expand Community Connectivity
The Hills at Vallco will improve the quality of
public spaces surrounding the site so as to
enhance the pedestrian and bicycle experience
and connect The Hills at Vallco with the broader
community. Through an understanding of the
surrounding community needs, an integrated
multimodal network will be implemented that
focuses on aesthetics, access, and connectivity
within South Vallco Park, Apple Campus 2, and
the greater Cupertino community.
16
Transportation Solutions
APP-088
The Hills at Vallco | Project Description | September 2015
17
Heart of the City
Vallco Shopping
District
North Vallco
Gateway
South Vallco
Park Gateway
North Vallco
Park
Figure 9. Vallco Park Special Areas identified in Cupertino's General Plan.
APP-089
The Hills at Vallco | Project Description | September 2015
The property owner is seeking from the City of
Cupertino following entitlements and approvals:
Legislative Approvals
•Specific Plan
•Conformance Zoning
•Development Agreement
Project Level Approvals
•Development Permits
•Conditional Use Permit
•Vesting Tentative Map
•New and Modified Easements, Air Rights and
Other Related Agreements
•Tree Removal Permit
•Architecture and Site Approvals
•Environmental Review
Primary Objectives
•Carry out the vision in the City’s General Plan to
transform the outdated Vallco Shopping Mall
into a vibrant and healthy mixed-use town
center by balancing retail, employment,
residential, civic and ancillary uses with a focus
on providing significant open space features,
views, and a gateway to Cupertino.
•Revitalize this critical urban infill site with a
strong and complementary mixed-use program,
including retail, office, residential, civic and
ancillary uses, at an intensity and density that
both promotes visitor activity and interest and is
able to financially support an innovative open
space, transit center, and civic programs, as
well as achieve a high level of sustainability.
Secondary Objectives
•Create an innovative and active gathering
place with a vitality in design that integrates
and encourages walking and cycling and that is
compatible with, and complementary to, recent
well-designed projects proximate to the project
site.
•Capitalize on the opportunity to utilize existing
infrastructure in a manner which furthers local,
regional and state compact and sustainable
growth goals, including the extension of
recycled water.
•Provide sufficient local serving and destination
retail uses to enable Cupertino and South Bay
residents and shoppers to reduce vehicle miles
travelled and associated greenhouse gas
emissions.
•Create an active, inviting and comfortable
place for people to visit, shop, and enjoy dining
and entertainment.
•Provide greater residential variety and density,
including additional affordable residential and
life-cycle residential.
•Reduce distances between residential,
workplaces, retail businesses, and other
entertainment amenities.
•Improve local access to fresh and healthy
foods by integrating more traditional food retail
with the vibrancy of local farmers markets, and
the heightened awareness of seasonal cycles
as well as education opportunities through
urban farming.
•Provide adequate parking and vehicular access
that meets the needs of future project visitors,
employees, and residents, while encouraging
the use of transit, bicycle, and other alternative
modes of transportation.
•Create new residential opportunities in close
proximity to employment centers, public transit,
shops, restaurants and entertainment uses.
•Create a new regional civic gathering place
that has a strong neighborhood character that
is informed by and responding to the ideas,
input and concerns of the local community.
The property owner may supplement this list with
additional approvals from appropriate local,
regional, state and federal agencies.
The Hills at Vallco community amenities,
including community park and nature preserve,
transportation improvements, education facilities
and programs funding, and other benefits
outlined in this Project Description are proposed
to be included as part of legally binding and
enforceable Development Agreement between
the property owner and the City of Cupertino.
18
Entitlements and Approvals
APP-090
The Hills at Vallco | Project Description | September 2015
The Hills at Vallco fulfills, implements and
complies with Cupertino's General Plan, the
policies for the Vallco Shopping District Special
Area, and the South Vallco Connectivity Plan:
1. General Plan Conformance
The City of Cupertino has been working with the
community over the past two years to update its
General Plan - the overarching policy document
that guides all future growth and development
decisions made by the city. On December 4,
2014, the Cupertino City Council formally
adopted an updated General Plan called
“Community Vision 2040”.
The Hills at Vallco follows the strategic direction
set by the City of Cupertino to focus future change
within Special Areas, such as the Vallco Shopping
District. These Special Areas are located on
Cupertino’s major mixed-use corridors with a mix
of commercial, office, hotel and residential uses.
At the same time, The Hills at Vallco will also
protect and enhance Cupertino's neighborhoods
to ensure the community’s great quality of life in
these largely residential areas.
Planning for changing demographics. The
City needs to plan not only for existing families
which form a larger percentage of our population,
but also for the growing demographic of seniors
and younger workers through new residential,
services, shopping, entertainment and
community facilities.
Local and regional land use planning and
collaboration. The City will take an active part in
regional collaborative planning processes related
to residential, transportation, sustainability,
health, transportation and infrastructure financing
in order to ensure local land use and
transportation decisions are coordinated with
regional efforts.
Integrating community health into land use
planning. The City will enhance and improve
health of people who live and work in our
community. This includes integrating land use
and transportation networks to reduce reliance
on auto usage and improving alternative choices
for transportation by focusing growth and change
in corridors that support all modes of transit,
providing neighborhoods with easy access to
schools, parks and neighborhood centers.
Land use and economics. The City will look to
diversify the City’s tax base, support and retain
existing businesses, increase the vitality of aging
commercial centers with redevelopment, seek to
diversify shopping opportunities so that the
community has the opportunity to satisfy their
shopping needs within Cupertino.
Urban design, form and character. The City
will seek high-quality development to achieve
desired physical environment in Planning Areas,
including walkable, connected neighborhoods,
inviting streets that allow for different modes of
transportation, and vibrant and walkable special
areas, and neighborhood centers in keeping with
Community Vision 2040.
Preservation of natural environment and
hillsides. Cupertino is blessed with an
abundance of natural resources, including
hillsides, creek corridors, and sensitive animal
and plant habitats along the foothills. Much of
this land is preserved in low-intensity residential
and agricultural uses or open space. As
redevelopment occurs, the City will strive to
preserve these natural areas through land use
and building design decisions.
Economic Vitality and Fiscal Stability. As
Cupertino’s population grows and ages,
demands on community resources will increase.
In order to maintain and enhance the
community’s quality of life, the City will ensure
that existing businesses are encouraged to
reinvest and grow in Cupertino, and that the City
continues to attract new businesses and
investment."
2. Vallco Shopping District Special Area
Conformance
As part of the "Community Vision 2040", the City
Council adopted new General Plan goals,
policies and strategies for Vallco Shopping
District Special Area, where Vallco Shopping Mall
is located. The City envisions a complete
19
General Plan Conformance
APP-091
The Hills at Vallco | Project Description | September 2015
redevelopment of the existing Vallco site into a
vibrant mixed-use “town center” that is a focal
point for regional visitors and the community.
This new district will become a destination for
shopping, dining and entertainment in Santa
Clara Valley. The Hills at Vallco fulfills,
implements and complies with the Vallco
Shopping District Special Area objectives and
goals of the General Plan:
Policy LU-19.1: Specific Plan: Create a
Specific Plan prior to any development on the
site that lays out the land uses, design standards
and guidelines, and infrastructure improvements
required. The Specific Plan will be based on the
following strategies:
Strategy LU-19.1.1: Master Developer.
Redevelopment will require a master developer
in order to remove obstacles to the development
of a cohesive district with the highest levels of
urban design.
Strategy 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.
Strategy 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.
Strategy LU-19.1.4: Land Use. The following
uses are allowed on the site:
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.
Hotel: Encourage a business class hotel with
conference center and active uses including
main entrances, lobbies, retail and restaurants
on the ground floor.
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.
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.
Strategy LU-19.1.5: “Town Center”
Layout. 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.
Strategy 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, bike-friendly
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.
Strategy LU-19.1.7: Existing Streets. 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 Nineteen800
and Main Street.
Strategy LU-19.1.8: Open Space. Open space
in the form of a central town square on the west
and east sides of the district interspersed with
plazas and “greens” that create community
gathering spaces, locations for public art, and
event space for community events.
Strategy LU-19.1.9: Building Form. Buildings
should have high-quality architecture, and an
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The Hills at Vallco | Project Description | September 2015
emphasis on aesthetics, human scale, and
create a sense of place. Additional heights may
be approved in specific areas by the City Council
as part of the Community Benefits Program.
Taller buildings should provide appropriate
transitions to fit into the surrounding area.
Strategy LU-19.1.10: Gateway Character. High-
quality buildings with architecture and materials
befitting the gateway character of the site. The
project should provide gateway signage and
treatment.
Strategy LU-19.1.11: Phasing Plan. A phasing
plan that lays out the timing of infrastructure,
open space and land use improvements that
ensures that elements desired by the community
are included in early phases.
Strategy LU-19.1.12: Parking. Parking in
surface lots shall be located to the side or rear of
buildings. Underground parking beneath
buildings is preferred. Above grad structures
shall not be located along major street frontages.
In cases, where above-grade structures are
allowed along internal street frontages, they shall
be lined with retail, entries and active uses on
the ground floor. All parking structures should be
designed to be architecturally compatible with a
high-quality “town center” environment.
Strategy LU-19.1.13: Trees. Retain trees along
the Interstate 280, Wolfe Road and Stevens
Creek Boulevard to the extent feasible, when
new development are proposed.
Strategy LU-19.1.14: Neighborhood
Buffers. Consider buffers such as setbacks,
landscaping and/or building transitions to buffer
abutting single-family residential areas from
visual and noise impacts.
3. South Vallco Connectivity Plan
Conformance
In accordance with the General Plan, South
Vallco is envisioned to become a vibrant mixed-
use downtown. In order to support these
changes, the Connectivity Plan calls for the City
of Cupertino to work with property owners to
improve connectivity within Vallco and the
adjacent areas. The property owner is
collaborating with the City of Cupertino and will
include the plan's connectivity goals and
objectives in the The Hills at Vallco:
Connectivity Goal
Create an efficient, safe, pleasant, well-designed
and complete multi-modal network that improves
aesthetics, access and internal connectivity
within South Vallco.
Connectivity Objectives
Vehicular Circulation. Create logical,
identifiable and safe automobile connections
between public roadways and private parking
areas throughout South Vallco.
Bicycle Connectivity. Improve internal bicycle
circulation throughout South Vallco through new
bicycle lanes and paths, bicyclist amenities, and
the potential trail along the northern boundary of
the area.
Pedestrian Connectivity. Enhance pedestrian
walkways and pathways so they are better
connected to buildings and parking areas in
order to support retail uses, create a more
welcoming environment and improve safety.
Transit Opportunities. Work with Santa Clara
Valley Transportation Authority (VTA) to improve
bus transit shelters and amenities, and identify
opportunities to establish new Park-and-Ride
locations within South Vallco.
Streetscapes. Enhance he visual appeal of
public and private streetscapes to create a more
pleasant and inviting environment for motorists,
pedestrians and bicyclists.
Image and Brand. Identify a strategy to create a
unified theme and brand for streetscapes
throughout South Vallco, including new signage,
landscaping palette, lighting, street furniture and
other design elements.
Reduced Traffic Impacts. Minimize traffic
impacts on local neighborhoods by improving
internal circulation, creating a multi-modal
network to encourage bicycling and transit,
fostering a “park once” atmosphere, and
allowing for the efficient flow of traffic through
South Vallco.
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The Hills at Vallco | Project Description | September 2015
In December 2014, the City Council directed the
property owner to embark on a comprehensive
community engagement process and develop a
detailed project proposal and Specific Plan for
consideration by the City Council.
The purpose of the Specific Plan is to lay out the
land uses, design standards and guidelines, and
infrastructure improvements required for the
revitalization of the Vallco Shopping District
Special Area. This Specific Plan will be based on
the land use strategies set forth in the General
Plan Amendment, including the establishment of
a town center for the Cupertino community, and
containing a vibrant and connected mix of retail,
entertainment, residential, offices, and open
space.
An expert planning consulting firm will assist in
the development of the Specific Plan that will
conform to the policies and strategies of the
General Plan Amendment, adapt to and inform
the planning and design approach currently
being developed by the property owner's master
planners, and accommodate future changes as
well as maintain flexibility for evolving
development strategies that will respond to
market conditions over time.
The Specific Plan will serve as the zoning
umbrella for the Vallco Shopping District,
conform to and inform master plans, and is
anticipated to include, but is not limited to the
following:
•Land Use/Residential: The plan will define
land use designations, including total number
of units, densities, square footage of non-
residential uses, mixed-use, and employment
generating land uses. Population and job
projections, and possibly student generation
projections will be included.
•Transportation and Parking: Description of
circulation for vehicles, transit, bicycles, and
pedestrians. New streets, paths and
connections shall be included. Parking
management strategies and transit oriented
development parking ratios will be identified,
based on the prior or other similar parking
demand analysis and the anticipated mix of
uses.
•Design and Streetscape Standards: Policies
and standards to promote pedestrian and
bicycle-friendly design to increase pedestrian
and bicyclist comfort and safety, and intended
to transform the suburban, auto oriented layout
of the mall.
•Open Space Plan: The plan will address the
provision of adequate public and private open
space as an integral part of the conceptual
land-use plan.
•Public Services: Information about services
and infrastructure needed to implement the
plan, including specific policies regarding
utilities, public safety, parks, schools, and
cultural facilities.
•Sustainability Opportunity Analysis: A
detailed, long-range strategy to achieve project
sustainability in the sectors of greenhouse gas
emissions, energy, transportation and land use,
solid waste, water, and economic
development.
•Technical Studies for the Specific Plan:
Technical studies could include but are not
limited to assessment of strategies and
necessary improvements for development
projects, mobility, and streetscape design such
as:
-Infrastructure implementation.
-Financing plan and market analysis.
-Alternatives analysis for floor area
allocations and land uses across the
Specific Plan area.
-Transportation Demand Management plan/
memo, which may include a parking policy
and management plan.
•Community Involvement: Community
engagement will continue to take place during
the Specific Plan development.
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Specific Plan Development
APP-094
The Hills at Vallco | Project Description | September 2015
23
Figure 10. Conceptual town center layout and strategic retail, entertainment and recreation zones.
TOWN
SQUARE
EAST
Heart
of the
City
Main
Street
Cupertino
Retail, Food and
Beverages
Market Hall and Flagship
Stores
Entertainment and
Recreation
Retail Promenade and
Activated Public Streets
TOWN
SQUARE
WEST
Retail
Promenade
APP-095
The Hills at Vallco | Project Description | September 2015
Mixed Land Uses
The sixteen-block town center layout will provide
a flexible framework that allows a vibrant mix of
uses be distributed both horizontally and
vertically across the sites west and east of Wolfe
Road. The highest priority for the success of The
Hills at Vallco is the location and distribution of
the family friendly retail and entertainment,
followed by the integration of complementary
apartments, offices, and parking. The ground
floor level across the site will have ample spaces
for small, medium and large retail uses. On top
of the ground floor retail will be at least one of
following uses: a second retail level to provide
double height spaces for flagship stores,
apartments, offices, or parking.
Vibrant Retail
There will be multiple types and sizes of retail
space to serve The Hills at Vallco located at and
near the most walkable and transit connected
places within the site. Stevens Creek Boulevard
is a major pedestrian town center entrance. From
there, the retail promenade, which connects
Stevens Creek Boulevard with Town Square
West, will form a walkable shopping loop.
Additional retail will be located along Stevens
Creek Boulevard, Town Square East, Wolfe
Road and Vallco Parkway to activate the public
streets with pedestrian life.
Stevens Creek Boulevard Entrance
Commuters, pedestrians, and bicyclists will enter
The Hills at Vallco from Stevens Creek
Boulevard. They will arrive at a generous
entrance plaza, lined with two-story flagship
retailers with prominent facades in Blocks 1, 3,
and 7, all of which face and address the scale of
Stevens Creek Boulevard. The entrance plaza
will provide two pedestrian entry points to the
retail promenade at Avenues A and B.
Retail Promenade
The ground floor retail promenade along
Avenues A and B extending from Stevens Creek
Boulevard north will be complemented above by
apartments on the upper floors of Blocks 1, 2, 3,
4, 7, 8, and 9, and will join up with the AMC
Theater and additional entertainment and
recreational programming at the northern edge of
the Town Square West.
Market Hall
Block 8 will contain a signature space for various
specialty and artisanal food venues. The Market
Hall will activate the entrance to The Hills at
Vallco at the Wolfe Road and Vallco Parkway
intersection.
Town Square East
The group floor corners of Blocks 11, 12, 13, 14,
15, and 16 will contain a mixture of small to
medium-sized retail as well as destination food
and beverage venues that provide support during
the day and evening to the employees and
visitors of the mixed-use retail and office district.
Vital Entertainment and Recreation
On the north side of Town Square West, situated
in Blocks 5 and 6, the primary entertainment,
sports, and recreation spaces, including the AMC
Theater, a bowling alley, a fitness center, and an
ice rink, will be located.
AMC Theater
The centerpiece of the entertainment zone will
be a state-of-the-art, multi-screen AMC Theater.
The theater faces south onto Town Square West
with a mezzanine overlooking the square that is
complemented by various food and beverage
venues, outdoor seating, and retail shopping.
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Revitalization Plan
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The Hills at Vallco | Project Description | September 2015
Bowling Alley
The next generation, multi-use bowling alley will
be located adjacent to the AMC Theater.
Ice Rink
The regulation sized ice rink will be located at the
northern-most position of this block, with viewing
stands built alongside.
Fitness Center
The new fitness center will be located on the
upper floors to provided direct access to rooftop
community wellness activities.
Active Civic Spaces
The 10,000 square feet high-school Innovation
Center will serve as an innovation and
collaboration hub, project space, art gallery, and
competition arena for robotics tournaments.
About 5,000 square feet of space will be
reserved for community group activities and local
nonprofit organizations.
The Hills at Vallco will continue to collaborate
with the community to identify and create first-
class civic and cultural destinations.
Attractive and Integrated Residential
The Hills at Vallco proposes mixed-use
residential over ground floor retail. The
residential residential mix promotes an inclusive
town center lifestyle and will serve a range of
household types and income levels inclusive of
singles, couples, young families, active seniors,
visiting executives, and low income households.
The residential unit mix will include:
Apartments with parking and residential
amenities will be situated in Blocks 1, 2, 3, 4, 7,
8, and 9.
Cutting Edge Offices
Two million square feet Class-A office space will
provide the most up-to-date, efficient and flexible
spaces for incubators or start-ups, emerging or
established companies across the lifecycle of
Silicon Valley companies.
75 percent of the office spaces will be located in
the mixed-use retail and office district East of
Wolfe Road. Blocks 11, 12, 13, 14, 15, and 16
will provide the flexibility to be connected by
pedestrian bridges at the upper floors.
The other 25 percent will be located West of
Wolfe Road in Blocks 9 and 10.
Office entrances, lobbies and some of the
employee amenities will be located at ground
floor in such a manner that they enhance the
active use of the walkable town center streets
and town squares.
Signature Rooftop Amenities
The community garden and nature preserve of
The Hills at Vallco will contain a multitude of
community-based, educational, and civic-
oriented spaces to serve the citizens of
Cupertino. It will also provide residential
amenities required by City code, and reserved
amenity spaces for office uses.
The single level rooftop pavilions will serve
community, residential, and office functions. The
community banquet hall, with a capacity of more
than 2,000 occupants, and wine garden adjacent
to the vineyards will be used for large community
gatherings such as weddings, fundraisers,
cultural events and festivals.
The rooftop amenity program will be further
considered in collaboration with the local
community and future users.
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The Hills at Vallco | Project Description | September 2015
Distributed Parking
Approximately 9,175 parking spaces will be
located below-grade, at grade, and in parking
structures. The parking is allocated to each
location as appropriate for the needs of the
adjacent users and is separated where required
and shared where possible. The basement levels
will provide approximately 6,000 parking spaces.
Basement Level 2
Basement Level 2 will have a floor to floor height
of 12 feet, and will cover approximately 670,000
square feet on east of Wolfe Road to serve the
offices. Basement Level 2 will be accessed from
grade via ramps through basement level 1.
Basement Level 1
Basement Level 1 will have a 15 foot floor to
floor height. Basement Level 1 is accessed by
multiple parking structure ramps from grade
along Perimeter Road, Wolfe Road, and various
on-site streets.
At-Grade Parking
Distributed around The Hills at Vallco is short
term, at-grade parking along the various on-site
streets for ease of access to the retail and
entertainment venues.
Parking Structures
Residential parking will be provided in the
resident only parking structures that are
integrated with the apartments in Blocks 1, 2, 4,
and 8.
Office parking will be provided in Block 16.
Efficient Central Plant
A central plant will be located at the upper
portion of Block 16 adjacent to the Hwy. 280. It
will provide centralized heating and cooling to all
blocks in the town center. Each town center
block will contain mechanical support spaces in
the interstitial spaces between the buildings and
the green roof above. The mechanical equipment
will be screened from public views by the roof
structure.
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APP-098
The Hills at Vallco | Project Description | September 2015
27
Figure 10. Conceptual site and parking access plan.
APP-099
The Hills at Vallco | Project Description | September 2015
The Hills at Vallco recognizes the existing traffic
conditions in the area and strategic location near
Hwy. 280 and along key transportation corridors.
The Hills at Vallco will incorporate following
transportation strategies for Cupertino residents,
employees, and visitors:
Right Land Uses in the Right Place
The Hills at Vallco is at the geographic center of
the west side of Silicon Valley, near the
intersection of two major freeways. Stevens
Creek Boulevard is a key transit corridor in Santa
Clara County and is served by local and limited-
stop bus service at a combined rate of one bus
every 5-10 minutes on weekdays to downtown
San Jose and to De Anza College, with 15-
minute frequency on weekends and weeknights.
The stop at Stevens Creek Boulevard and Wolfe
Road is served now by both local and limited-
stop service and is slated by VTA to receive rapid
service within the next several years and
eventually, a bus rapid transit station. There is no
better location for a long-needed town center for
Cupertino. Locating jobs, residential, retail and
education uses in a town center can significantly
reduce driving distances for jobs and necessary
services, particularly compared to single-use
office districts east of Hwy.101. By providing a
mix of retail, residential, and offices, The Hills at
Vallco makes it possible to live and work on site,
and increases opportunities for shorter
commutes.
Daily Life Within Walking Distance
The Hills at Vallco is a mixed-use shop, live,
work, learn, and play environment. Employees
will not need to get in their cars to run errands or
go to lunch. Residents will be able to shop, dine,
and get groceries on foot. Even those who do
drive will be able to park once and take care of
several activities, significantly reducing traffic
demand compared to single-use destinations.
First Class Alternatives to Driving
As detailed in other sections, The Hills at Vallco
will offer a high level of transportation services,
including shuttles, on-site bike commuter
amenities, car-share, and other features, in
keeping with best practices elsewhere in Silicon
Valley. The intention is to create a transportation
mode shift away from single-occupancy vehicles
and into alternative transportation modes that will
minimize traffic and congestion in the City.
Information Technology
In order to help motorists find the closest
available parking space, transit riders find their
bus or shuttle, bike commuters identify the best
route, and carpoolers join together, we will use
the smart information technologies, tailored to
The Hills at Vallco.
Transportation Demand Management
The approach to transportation demand
management at The Hills at Vallco is to
systematically and actively remove the reasons a
person has to drive, including a multitude of
subsidized services for residents, workers,
visitors, and the community at large. The
investments in transportation options are
intended to generate benefits in terms of
minimizing congestion, and improving health and
environment. We will actively work to reach our
goals.
Further, the following transportation demand
management features are planned:
- Bicycle Friendly
Creating a safe, relaxing place to bicycle.
Cyclists will have a first class ticket to ride at
The Hills at Vallco. The many support services
offered on-site further prove our commitment to
cycling, such as repair stations, bike racks,
wayfinding and other features.
28
Mobility and Parking
APP-100
The Hills at Vallco | Project Description | September 2015
- Circulation Improvements
Becoming a more multimodal city transcends
the initiatives of any single neighborhood. To
that end, we are invested in improving
conditions for pedestrians, cyclists, and transit
riders in Cupertino.
- Carpool, Carshare, and Rideshare
Carshare, vehicle pods, an online ridematching
service, and priority parking for carpoolers at
The Hills at Vallco will encourage people to
share vehicles and rides. No longer will
carpoolers have to worry about finding others
who are interested and conveniently located.
Some people will give up car ownership
entirely.
- Multimodal Financial Incentives
The Hills at Vallco understand that the bottom
line of finances often determines a person’s
ability to switch to healthier, more sustainable
transportation modes. The Hills at Vallco and
its future tenants and employers will help with
a variety of on-going financial incentives to
encourage walking, biking, and riding transit.
- Robust Transportation Management
The transportation demand management
program at The Hills at Vallco will be robust
and comprehensive. It will provide free and
subsidized services for residents, employees,
and even the public at large. It starts with
having people who can effectively generate
excitement for and participation in the
multitude of services available, and coordinate
with other organizations in the community to
multiply the effectiveness of the programs
offered.
Site Access
The Hills at Vallco will be integrated into the
surrounding existing and planned roadway,
bicycle and pedestrian, and transit networks.
Roadway access points along Stevens Creek
Boulevard, Wolfe Road, and Vallco Parkway will
be located similarly to today but will provide safe
pedestrian and bicycle crossings, transit access,
and will connect to thoughtful internal street grids
that allow for efficient and safe circulation. The
access points and internal roadway network will
provide redundant routes for internal circulation
to minimize the amount of traffic.
Vehicular Traffic Improvements
One new signalized intersection is proposed
along Wolfe Road between Vallco Parkway and
the Hwy. 280 interchange. This intersection is
intended to facilitate bicycle, pedestrian, and
vehicular access to and from the east side of the
property.
Transit Improvements
The Hills at Vallco has been designed to embrace
the intersection of Stevens Creek Boulevard and
Wolfe Road as a transit center to service the
proposed complimentary Cupertino community
shuttle, VTA buses, corporate shuttles, sharing
economy transportation services. The transit
center will specifically accommodate the VTA’s
existing Stevens Creek bus line 23 and 323. The
Hills at Vallco will have an entrance plaza along
Stevens Creek Boulevard that will accommodate
pedestrian access to curbside station. The new
plaza will improve the pedestrian experience to
the existing curbside stop along Stevens Creek
Boulevard. Given the anticipated ridership
generated by The Hills at Vallco, the stop will
likely qualify to be a major bus stop; the specific
palette of amenities will be specified in VTA’s
forthcoming (fall 2015) Transit Passenger
Environment Plan. The existing bus stops along
Wolfe Road near Vallco Parkway will also be
upgraded with improved passenger waiting areas
and pedestrian access into the site.
High-quality commuter shuttle services are now
offered by numerous employers in Silicon Valley
in an effort to reduce the number of car trips
generated by their office workers. Each shuttle
has seating capacity for 50 to 70 passengers.
The Hills at Vallco will also feature a transit
center for the offices located near the
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APP-101
The Hills at Vallco | Project Description | September 2015
intersection of Vallco Parkway and Perimeter
Road that will accommodate the loading or
unloading of up to several shuttles at once. The
location of the transit center has been selected to
provide easy access to and from Hwy. 280, but
also the ability to travel in all directions.
Emergency Vehicular Traffic
The onsite roadway network will support
emergency vehicle access by providing sufficient
roadway width for emergency vehicles on all
interior streets, sufficient turning radii for large
vehicles, adequate height clearances including in
the Wolfe Road tunnel crossing, and a well-
organized street network with numerous access
points to the surrounding network.
Parking
There will be approximately 9,175 parking
spaces that will be distributed between
underground parking structures, surface parking,
and above-grade parking structures. Parking
access points are strategically located to
intercept incoming cars and to facilitate efficient
egress to minimize interior on-street traffic in
order to prioritize pedestrians and bikes.
Circulation will be provided within the
underground parking to reduce unnecessary
entries and exits and to minimize circling at
street level.
Street Parking Flexibility
Similar to how other urban areas in the South
Bay have adapted their use of street parking, the
street parking at The Hills at Vallco will be used
flexibly. Street parking space, in addition to its
original use, could be adapted to provide
restaurant and café seating areas, parklets,
additional sidewalk amenities, or could be used
for temporary events such as farmers markets
and art and craft festivals.
Parking Dimensions
The Hills at Vallco will comply with Cupertino's
zoning regulations which require uni-size parking
stalls of 8’-6”x18’-0”. Other than parallel surface
street parking, 90 degree parking stalls for
maximum efficiency will be proposed, which will
requires a 24’-0” drive aisle.
Accessibility Parking
Accessible parking will be provided per the
American’s with Disabilities Act and the Building
Code.
Electric Vehicle Parking
The Hills at Vallco anticipates that EV charging
stations at the opening will far exceed the
minimum Cupertino code requirements.
Parking Guidance System
The Hills at Vallco will incorporate a state-of-the-
art parking guidance system that will direct
vehicles to open spaces. This system will provide
sensors for every parking space that provides
accurate counting to a signage system and to
mobile and web based technology to
communicate parking count status and to direct
patrons to where parking is available. This
reduces the amount of circulation necessary to
find a parking stall which in turn reduces
emissions, and makes the visitor experience
more convenient and pleasant.
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The Hills at Vallco | Project Description | September 2015
Pedestrian Connectivity
The Hills at Vallco will provide safe and
comfortable connections for all pedestrians.
Sidewalks will be continuous, accessible, and
tree-lined with signalized crosswalks safely
connecting the street grid. The at-grade
pedestrian-friendly streets will support universal
access with gentle slopes. Bulb-outs will protect
pedestrians at public streets accessing the site,
and the narrow streetscapes and bulb-outs within
the property will provide an environment to
facilitate comfortable walking. The South Vallco
Connectivity Plan was used to guide the
development of these features, including
intersection improvements and prioritization of
streetscape design for better walkability.
Town Squares West and East
Town Squares East and West will highlight The
Hills at Vallco’s walkability and focus on
community life. The streets surrounding the town
squares are intended to extend the area of each
town square by emphasizing the shared nature
of the street, through use of different paving
materials, color, height differences, or other
street design features. These town squares will
form the focal point for temporary street closure
events.
Wolfe Road Crossing
Connecting Town Squares West and East will be
a landscaped pedestrian bridge that will extend
over Wolfe Road for a variety of activities, such
as walking, jogging, and hiking. This will replace
the existing heavy and enclosed bridge.
Bicycle Connectivity
The Hills at Vallco will prioritize access and
circulation for bicyclists of all comfort levels. The
existing bicycle network on Wolfe Road, Vallco
Parkway, and Stevens Creek Boulevard will
continue onto the site with additional bike lanes
on 4th and 6th Streets. The Perimeter Road
tunnel will provide a through, grade-separated
route across the property, as it has in the past,
but with improved functionality and environment
for bicyclists. Further within the site, bicycle
striping, green bike lanes, and bike boxes will
continue to highlight a multimodal street network.
There will be a network for everyone, from
commuters who prefer the fastest route to
shoppers and park visitors who want to take their
time exploring the green roof and bridge.
Perimeter Road Shared Use Path
The existing sidewalk surrounding The Hills at
Vallco will be improved and expanded into a
shared use, off-street path. As envisioned in the
South Vallco Connectivity Plan, the path will be
separated from Perimeter Road and will support
both bicyclists and pedestrians. Where existing
trees beautify the streetscape, the path will split,
minimizing disturbance to the trees and allowing
the path to be shaded. Any trees that cannot
remain along Perimeter Road will be relocated or
new trees will be planted in place of trees that
must be removed. The shared use path will allow
for multiple connection points to future paths at
the northern project border, as identified in the
South Vallco Connectivity Plan.
Minimizing Conflict
Intersection design will ease pedestrians,
bicyclists, and vehicles to their destination with
minimal conflict. For example, a new intersection
proposed at Wolfe Road and 6th Street will
provide an east-west bidirectional bike lanes
along the south edge that allows bicyclists and
pedestrians to cross without conflicts with
southbound vehicles turning left from Wolfe to
6th and westbound vehicles turning right from
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Connectivity and Public Improvements
APP-103
The Hills at Vallco | Project Description | September 2015
6th to Wolfe. Along Perimeter Road, crossings
will be clearly marked to facilitate connections
from the shared use path into the internal street
grid. Interior streets will be designed as low-
speed shared streets that feature a healthy
mixing of bicycle, auto, and street parking
activity.
Bicycle Amenities
Bolstering the bicycle network will be amenities
for secure, comfortable bicycling. In addition to
the short term bike parking located throughout
the property, cyclists will have access to bike
lockers, indoor bike parking, and charging for
electric bike users. Bike repair stations will also
be provided a various locations in around the
Hills at Vallco. Within offices, employees will
have showers and changing facilities to
comfortably continue the day after an active
commute to work. Coordinating with retail
services on site, cyclists could access a bike
shop with a professional bicycle mechanic to
help with maintenance needs or to purchase
supplies.
Programming for Walking and Biking
Programming through strong transportation
management will incentivize and support active
transportation. Commuters who bike or walk to
work will receive incentives and personalized trip
planning support. Residents and employees will
be able to take part in bicycle and helmet
giveaway programs. For active travelers who
would rather go with a group, walk and bike pool
clubs could offer guided tours to work.
Employees, residents, and shoppers will be able
to participate in site-wide events to celebrate
bicycling and walking. Together, these amenities
align perfectly with many of the South Vallco
Connectivity Plan objectives, including
emphases on bicycle and pedestrian
connectivity, streetscapes, and image and brand.
Vehicle Connectivity
While connectivity for pedestrians and bicyclists
will be prioritized, efficient vehicle flow enables
efficient travel for everyone. The Hills at Vallco
will have a clear roadway hierarchy that directs
most vehicles to the parking garages efficiently,
reducing potential conflicts with pedestrians and
bicyclists on the at-grade street network. The
existing public roads of Wolfe Road, Stevens
Creek Boulevard, and Vallco Parkway are
designed to handle the most vehicle capacity.
Connectors are second in the hierarchy with 4th
St, portions of 6th St, and Perimeter Road
directing vehicles towards the primary roadways.
Vehicles most easily access the site from
Stevens Creek Boulevard at Perimeter Road,
from northbound Wolfe at 4th Street/Vallco
Parkway, and from southbound Wolfe Road
straight into the parking garages north of 6th
Street. Vehicles that venture further into the site
will encounter narrower, slower streets with
greater bicycle and pedestrian activity. In
general, the small block street network
envisioned in the South Vallco Connectivity Plan
will encourage the objective of efficient and safe
multimodal circulation.
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APP-104
The Hills at Vallco | Project Description | September 2015
Public Improvements
Public Improvements to adjacent roadways
include:
Wolfe Road
•Create an urban-style setting with logical and
accessible pedestrian-scale roads.
•Create logical, identifiable, and safe vehicular,
pedestrian, and bicycle connections between
public roadways and the parking areas
throughout the South Vallco area.
•Improve sidewalks along Wolfe Road from
Stevens Creek Boulevard to Hwy. 280.
•Restripe and color bike lanes along Wolfe
Road from Stevens Creek Boulevard to Hwy.
280.
•Preserve majority of mature, healthy trees
along Wolfe Road while relocating and planting
new trees.
•Provide pedestrian-scale lighting and street
furniture along Wolfe Road to encourage
pedestrian access to commercial venues.
•Rebuild the Perimeter Road tunnel to provide
adequate height clearance to permit service
vehicles, trucks, emergency vehicles, and other
taller vehicles so that these necessary service
activities can move across the property without
crossing Wolfe Road at grade.
•Build additional tunnel under Wolfe Road to
improve the parking circulation, connecting the
parking basements east and west of Wolfe
Road.
Stevens Creek Boulevard
•Provide retail shopping front door entry point
accessed directly from Stevens Creek
Boulevard. There will be both a vehicular entry
and a pedestrian-only entry with easy
connections to rapid transit buses and
community shuttle.
•Create logical, identifiable, and safe vehicular,
pedestrian, and bicycle connections between
public roadways and the parking areas
throughout South Vallco.
•Preserve vast majority of healthy, mature trees
along Stevens Creek Boulevard while
relocating and planting new trees.
Vallco Parkway
•Create a multi-use street that allows for ground
floor retail and comfortable pedestrian
experience, a private shuttle stop, continuous
bike lanes, and entry and exit points to the
property, while accommodating traffic turning
movements onto Wolfe Road.
•Create a smooth transition to and from the
proposed bidirectional shared-use path along
Perimeter Road.
•Convert the street west of Wolfe Road from a
underground parking garage and basement
entry into an open air, accessible ceremonial
entrance to The Hills at Vallco and connecting
it to Main Street Cupertino and the South
Vallco Park area.
33
APP-105
The Hills at Vallco | Project Description | September 2015
The property owner has analyzed both the new
project needs and the greater community needs
in terms of utilities and their impact on the
currently available capacity. As such, The Hills at
Vallco strives to have the smallest impact on the
current public infrastructure by sustainably
reusing, recycling, and reclaiming many of the
power, water, and sanitary for reuse back into
The Hills at Vallco.
Storm Drain
The majority of rain that falls on The Hills at
Vallco will land on the green roof structure above
street level. This water will be cleansed and, to
the fullest extent possible, collected and reused
on site for irrigation and other recycled water
uses to reduce the domestic water dependency
of the project. By dealing with storm water runoff
in this manner the project will go above and
beyond storm water cleansing and LEED
requirements. This will also greatly reduce the
runoff from the current conditions which is above
and beyond the minimum requirements for
stormwater treatment.
Rain that falls on the podium area and Perimeter
Road will treated and reused depending upon
the location and the irrigation demand
requirements.
The existing public storm drain runs north down
Wolfe Road and cuts through a portion of the
property where the proposed development will
be located. The plan for this public storm drain is
to rework the drainage on Wolfe Road to flow to
Vallco Parkway and then east down Vallco
Parkway to the intersection with Perimeter Road.
A new public storm drain will be installed in
Perimeter Road located in the public utility
easement for discharge into the Junipero Serra
Channel owned by Santa Clara Valley Water
District along Hwy. 280. All existing laterals and
catch basins along The Hills at Vallco will be
reconnected to the new line.
Sanitary Sewer
Sanitary sewer will be separated into grey water
and black water, with grey water being used to
the fullest extent possible for irrigation and
potentially other uses as allowed by code. This
will reduce the impact on the public sanitary
sewer system and The Hills at Vallco's future
demand. Black water treatment and reuse will be
explored during the design phases given the
extent of the green roof and the need to fertilize
and irrigate the vegetation.
The existing public sanitary sewer is owned and
operated by Cupertino Sanitation District and
runs north down Wolfe Road and cuts through a
portion of the property where the proposed
development will be located. The proposed plan
for the public sanitary sewer main is to reroute
the main that flows North on Wolfe Road to flow
back south to Vallco Parkway and then East
down Vallco Parkway to the intersection with
Perimeter Road. A new public sanitary sewer will
be installed in Perimeter Road located in the
public utility easement around the development
and reconnected to the existing sewer main that
crosses Hwy. 280. All existing laterals along
Vallco Parkway will be reconnected to the new
line.
34
Utilities
APP-106
The Hills at Vallco | Project Description | September 2015
Domestic Water Lines
Public water lines are owned and operated by
California Water Service Company and mains
exist down Wolfe Road from North to South, and
enter into the property where the proposed
development will be located. There are also
public water main lines running in Perimeter
road, both on the East and West.
The proposed development will reroute the main
line that runs down Wolfe Road and direct it all to
new public main lines that surround the project in
Perimeter Road. These lines will be reconnected
to the main loop that runs under Hwy. 280. The
Hills at Vallco will be serviced from a new public
water main line installed in Perimeter Road by
this project and located in an easement to the
California Water Company.
Fire Water Lines
Cupertino and California Water Service
Company have a combined fire and domestic
water system. All of the work laid out in the
Domestic Water Lines section will also be
applicable for Fire water service, and all
buildings fire water will be served off or
Perimeter Road and meet Fire Code
Requirements.
Recycled Water Lines
The property owner is collaborating and pursuing
a public private partnership with the necessary
agencies, California Department of
Transportation, Santa Clara Valley Water District,
Sunnyvale, California Water Service Company
and Cupertino to provide recycled water from
Sunnyvale, north of the site, across Hwy. 280.
This analysis has proven that a connection to the
Sunnyvale recycled water system is feasible and
will continue to be pursued. The Hills at Vallco
will be plumbed to accept recycled water to
accommodate the public recycled water system
installed in the future near the site.
Gas Lines
Public gas is owned and operated by Pacific Gas
and Electric and these lines run underground on
the east side of Wolfe Road from north to south.
There are no proposed changes to these lines.
The Hills at Vallco will pull public gas lines from
Wolfe Road, and down Perimeter Road. Service
lines for the buildings will be pulled off of this
new public line.
Communication Lines
Public communication lines run underground on
the east side of Wolfe Road from north to south,
there are no proposed changes to these lines.
The proposed development will pull its
communications lines from Wolfe Road and
serve the proposed buildings off of Perimeter
Road.
Electric Lines
Public high voltage electric is owned and
operated by Pacific Gas and Electric and these
lines run underground on the east side of Wolfe
Road from north to south, there are no proposed
changes to these lines. The Hills at Vallco will
pull public underground lines from Wolfe Road,
and down Perimeter Road. Service lines for the
buildings will be pulled off of this new public line.
35
APP-107
The Hills at Vallco | Project Description | September 2015
The Hills at Vallco will create a pleasant and safe
pedestrian-oriented town center by replacing the
existing surface parking lots of the Vallco
Shopping Mall with below-grade parking
structures. Through the careful analysis of the
existing grading and using the naturally occurring
slope of the site, The Hills at Vallco will minimize
the amount of excavation required to create the
parking basement levels.
Grading
The site is approximately 50 acres and is
bisected by Wolfe Road with a bridging structure
over the top of the public road. Existing grades
around the perimeter of the site range from an
elevation of about 195 feet above sea level along
Stevens Creek Boulevard to an elevation of
about 175 feet above sea level to the north of
Perimeter Road. There is also an existing tunnel
at Perimeter Road that runs in the east - west
direction under Wolfe Road. The site has a large
concrete building that will be demolished as a
part of this project that includes basements and
retaining walls.
The Hills at Vallco will follow the natural slope of
the site, stepping down towards the north so as
to minimize excavation and reworking of roads in
the most efficient and cost effective manner. This
will allow for smooth transitions to the public right
of way, all vehicular access points, and provide
easily accessible pedestrian and bicycle-friendly
circulation.
Parking and Excavation
The Hills at Vallco will include about two-thirds of
the vehicular parking below-grade. It will be
located in two below-grade parking garages, one
on each side of Wolfe Road. The proposed floor
to floor sections for both garages are 15 feet for
the first basement level and 12 feet for the
second basement level, which only occurs on the
east side of Wolfe Road. The basement will have
a four foot thick slab.
The basement level on the west side of Wolfe
Road is roughly 26.3 acres and each basement
level on the East side of Wolfe is roughly 15
acres. The remainder of the required parking will
be located as surface street parking as well as
structured parking integrated within buildings
where feasible.
This parking approach will create great
improvements to the public realm for the
community, and the creation of the parking
basement will inevitably cause excavation and
off-haul of soils. Demolition materials that can be
recycled and reused on site will be stockpiled,
including concrete from the building and asphalt
and base rock. Some of the soil excavation from
the project site will be used on the green roof
and in landscaped areas at grade.
Construction
The property owner anticipates commencing
construction immediately after approval and
expects the completion of the first construction
phase in the second half of 2018. The first
construction phase is intended to include the
relocation and enhancement of the existing
entertainment, sports, and recreation venues
serving Cupertino - AMC Theater, the bowling
alley, and the ice rink. The start of the
subsequent construction phases will overlap with
the first phase by about six months, starting in
the first half of 2018.
The property owner’s construction protocol will
promote emissions reduction measures,
including the use of fuel efficient vehicles, and
clean-burning fuels.
36
Grading and Construction
APP-108
The Hills at Vallco | Project Description | September 2015
The property owner's environmental
sustainability goal for The Hills at Vallco is to
achieve LEED Platinum certification. This
objective will go significantly beyond the City of
Cupertino’s LEED Silver requirement for new
construction. Given the scale and complexity of
The Hills at Vallco, the property owner will
collaborate with the Green Building Certification
Institute to establish the appropriate LEED
certification approach.
Green Roof
The core of the property owner's environmental
sustainability strategy is the commitment to the
world’s largest green roof, which will result in
climate responsive and high performance
buildings, infrastructure, and landscape. The 30
acres will improve resource efficiency and
mitigate climate change, resulting in
unprecedented public and private benefits:
•reduced stormwater runoff
•improved water quality
•reduced urban heat island
•improved air quality
•improved thermal insulation
•reduced energy consumption
•reduced noise
•extended life of building roof
•improved carbon storage
•improved bio-diversity
In addition, the green roof will improve outdoor
comfort and user experience.
Water Conservation
The property owner will explore the feasibility of
a Net-Zero Water initiative with the intent to
maximize water conservation and will extend the
recycled water line from Sunnyvale to The Hills
at Vallco. The property owner is currently
pursuing a public-private partnership with
Sunnyvale, Santa Clara Valley Water District,
California Water Services Company and
Cupertino. Conservation measures under
consideration are:
•Utilize the municipal recycled water supply for
irrigation, cooling towers and toilet flushing,
while sending greywater and blackwater to the
local sewage treatment plant that supplies the
recycled water, thereby closing the loop.
•Collect rainwater and minimally treat to offset
some of the recycled water and also meet
storm water goals.
•Obtain potable water for drinking, sinks and
showers from the utility. This will include the
monitoring of the hydrology purification
advances by the utility.
•Reduce water consumption through building
energy efficiency, as significant water is wasted
through the generation of energy.
Landscape Irrigation
The local climate is characterized by warm, dry
summers and cool, moist winters. Average
rainfall has been historically about 15 inches/
year, falling from November through March.
Recent drought conditions have been accounted
for in the planning and irrigation planning. The
Hills at Vallco plant palette is focused on a native
species mix that can adapt to fluctuations in
seasonal rainfall. Efficient drip irrigation is
planned for all landscape trees. After
establishment, the meadows and woody shrubs
on the roof will need irrigation primarily to
supplement seasonal lack of rainfall and to
maintain a fire-safe landscape environment.
Water Sources
Recycled water from the Sunnyvale Water
treatment facility will be used as a primary
source of landscape irrigation. Periodic testing of
water chemistry, primarily for salts and chemical
solutes will be necessary to monitor any
37
Environmental Sustainability
APP-109
The Hills at Vallco | Project Description | September 2015
variations in suitability for irrigation and to
support long-term plant health. The use of
potable water will be avoided wherever feasible
and any usage will comply with all state and local
water restrictions. Additional sources of water for
landscape use might include seasonal storm
water capture and reuse and/or residential
greywater.
Water Use Efficiency
The Hills at Vallco seeks to reduce the
consumption of potable water. The foundation of
this is the use of low flow and ultra-low flow
plumbing fixtures with the goal of achieving a
reduction in potable water usage below the
baseline of the California Green Building
Standards Code, which is already a 30 percent
reduction compared to the performance of typical
buildings in the United States.
An optimized heating, ventilation, and air
conditioning strategy will reduce water use,
saving millions of gallons of water each year.
Shifting cooling production from warm days to
cooler nights may allow for air cooled chillers to
operate with efficiency that approaches the
performance of water cooled equipment while
avoiding the tens of millions of gallons of annual
evaporation that would come with water cooled
equipment.
Improved energy efficiency of The Hills at Vallco
will benefit the region by avoiding water use in
power plants, which consume an average of two
gallons of water for each kilowatt hours of energy
spent on site.
Climate Responsive Design
The Hills at Vallco will prioritize and integrate
climate responsive design strategies that
leverage the exceptional Mediterranean climate
of Cupertino to improve user comfort and to
reduce energy use of mechanical, electrical and
information technology systems. This will result
in energy and water conservation, and lower
carbon emissions. A combination of the geometry
of the compact town center layout, the vast
green roof, high performance building envelopes,
thermal mass, natural ventilation, natural
daylight, and internal load reduction will
accomplish these goals.
Active energy design strategies, such as low
energy systems, displacement ventilation, heat
recovery, efficient mechanical, electrical and
information technology equipment, LED lighting,
load scheduling, and other strategies will
complement the climate responsive design.
Renewable Energy
The property owner will explore strategies to
maximize the use of renewable energy for the
overall energy needs of The Hills at Vallco. This
will include on-site and grid provided solutions.
Green Building Codes and Regulations
All buildings will be designed and constructed to
meet or exceed the requirements of the current
2013 California Green Building Standards Code
and the 2013 California Energy Code. The Hills
at Vallco will use green building, high
performance, and environmental sustainable
strategies to meet or exceed the code required
benchmarks for energy efficiency, water
efficiency and carbon emission reduction.
38
APP-110
The Hills at Vallco | Project Description | September 2015
39
Site Map
Figure 10. Map and areas of The Hills at Vallco sites.
APP-111
The Hills at Vallco | Project Description | September 2015
West of Wolfe Road
This site is bounded by Stevens Creek
Boulevard on the south, Wolfe Road on the east,
and the outside edge of Perimeter Road on the
west and north (of which it is inclusive). It
contains three buildings, including the primary
mall building (with two anchor stores, formerly
Macy’s and Sears), an automotive center, and a
restaurant building, and two parking structures.
10101 Wolfe Road
APNs: 316-20-080 and 316-20-081
10123 Wolfe Road
APNs: 316-20-105, 316-20-106 and 316-20-107
10333 Wolfe Road
APNs: 316-20-101
Site Area: 33.2 acres
East of Wolfe Road
This site is bounded by Vallco Parkway to the
south, Wolfe Road to the west, and Perimeter
road to the north and east (of which it is
inclusive). It contains two buildings, including the
secondary mall building (with one anchor store,
JC Penney’s) and one parking structure
10150 Wolfe Road
APNs: 316-20-094 and 316-20-095
2074 Vallco Parkway
APN: 316-20-100
Site Area: 17.6 acres
40
Site Description
The parcels that will be combined to create The Hills at Vallco currently contain the existing Vallco
Shopping Mall, inclusive of its anchor stores, parking structures, and pad buildings. They are all located
within the Vallco Shopping District Special Area as designated in the General Plan for Cupertino, which
describes the area as a major regional and community destination, envisioned to become a new mixed-
use town center and gateway for Cupertino.
Note: 10333 North Wolfe Road, APN: 316-20-088
This site is owned by Wolfe Properties, LLC and is currently utilized as existing Vallco Shopping Mall
parking under an Operation and Reciprocal Easement Agreement. It will not be developed, but will be
available as parking for The Hills at Vallco under the agreement. It is bounded by the Wolfe Road off-
ramp from southbound Hwy. 280 on the North and East, by the northernmost edge of Perimeter Road
on the South, and the Portal Neighborhood on the West.
APP-112
The Hills at Vallco | Project Description | September 2015
Blocks 1 and 2
Mixed-Use Blocks 1 and 2 are connected at the
upper floors across 2nd Street and face Town
Square West and Stevens Creek Boulevard.
They are comprised of approximately 415,000
square feet of retail, residential, and parking.
Block 1 is approximately 470 feet by 205 feet,
Block 2 about 555 feet by 205 feet. They house
ground floor retail along the retail promenade
with residential entry lobbies and ground floor
amenities with 16 feet floor to floor height. Above
the ground floor are three stories of
approximately 130 residential apartments
containing a mix of studios, one bedrooms, two
bedrooms, and penthouse units. Above-grade
parking is located to the rear of the residential
units.
There is a below grade parking structure
entrance at the mid-point between Block 1 and 2
that permits retail visitors easy and quick access
to the parking structure from Perimeter Road
Block 3
Mixed-Use Block 3 faces Town Square West and
Stevens Creek Boulevard and is comprised of
approximately 160,000 square feet of retail and
residential. The approximately 175 feet long by
175 feet wide block houses a ground floor of
retail as part of the Retail promenade with a
residential entry lobby and ground floor amenity
that has a floor to floor height of 16 feet. Above
the ground floor are 4 stories of approximately 75
residential apartments containing a mix of
studios, one bedrooms, two bedrooms, and
penthouse units with various residential
amenities.
Block 4
Mixed-Use Block 4 has the prominent face
opposite the AMC Theater on Town Square West
and is comprised of approximately 400,000
square feet of retail, residential, and parking. The
approximately 335 feet long and 175 feet wide
block houses ground floor retail as part of the
retail promenade. Ground level residential
entrance lobbies, amenities, and retail have a
floor to floor height of 16 feet. Above are six
stories of approximately 200 residential
apartments containing a mix of studios, one
bedrooms, two bedrooms, and penthouse units.
Planned in this block is an above-grade
structured parking to the rear of the residential
units.
Blocks 5 and 6
Mixed-Use Blocks 5 and 6 are connected at the
upper floors across 6th Street. They are located
at the northwest corner at Perimeter Road and
are comprised of approximately 310,000 square
feet of the most up-to-date entertainment,
recreation, sports, and dining. The approximately
920 feet by 175 feet block houses the
entertainment and recreation heart, including
AMC Theater, bowling alley, ice rink, and fitness
center.
The basement parking for Blocks 5 and 6 will be
accessible via Perimeter Road.
Block 7
Mixed-Use Block 7 is at the corner of Vallco and
Wolfe Road and is comprised of approximately
130,000 square feet of retail, residential, and
amenity spaces. The approximately 175 feet by
145 feet block houses a ground floor of retail as
part of the retail promenade and a residential
entry lobby that has a floor to floor height of 16
feet. Above the ground floor there are four stories
of residential apartments containing a mix of
studios, one bedroom, two bedroom, and
penthouse apartments. Approximately 70 units
are planned in this block with various residential
amenities such as storage, fitness, and other
functions for the local residents.
Block 8
Mixed-Use Block 8 is comprised of
approximately 440,000 square feet of retail,
41
Block Description
APP-113
The Hills at Vallco | Project Description | September 2015
residential, and above grade parking. The
approximately 465 feet by 140 feet block houses
a ground floor of retail, residential entry lobbies,
and amenities that have a floor to floor height of
16 feet. Above the ground floor are six stories of
residential apartments containing a mix of
studios, one bedrooms, two bedrooms, and
penthouse units. Approximately 235 units are
planned in this block with structured parking to
the rear of the residential units. Market Hall is
located at the ground floor on the north side of
Block 8.
Block 9
Mixed-Use Block 9 has prime frontage along
Wolfe Road, Vallco Parkway, and Town Square
West, and is comprised of approximately
360,000 square feet of retail, residential, and
offices. The approximately 495 feet by 140 feet
block houses ground floor retail and commercial
offices with a floor to floor height of 16 feet.
Above the ground floor will be six stories of most
up-to-date, efficient and flexible Class-A office
space with a floor to floor height of 15 feet.
Connecting through Block 9 is the pedestrian
Wolfe Road crossing that takes visitors from
Town Square West to the roof and to Town
Square East across Block 11.
Above the ground floor are 4 to 6 stories of
residential apartments containing a mix of
studios, one bedrooms, two bedrooms, and
penthouse units. The approximate 90 units are
mixed with various residential amenities.
Block 10
Mixed-Use Block 10 has prime frontage along
Wolfe Road and is comprised of approximately
315,000 square feet of retail and offices. The
approximately 405 feet by 140 feet block houses
ground floor retail and commercial offices with a
floor to floor height of 16 feet. Above the ground
floor will be four stories of most up-to-date Class-
A office space with a floor to floor height of 15
feet.
Similar to Block 12, Block 10 has two primary
entry points to the below-grade parking structure.
Block 11
Mixed-Use Block 11 has prime frontage along
Town Square East, Wolfe Road, and Vallco
Parkway and is comprised of approximately
265,000 square feet of retail and offices. The
approximately 475 feet by 140 feet block houses
ground floor retail and commercial offices with a
floor to floor height of 16 feet. Above the ground
floor will be three stories of most up-to-date,
efficient and flexible Class-A office space with a
floor to floor height of 15 feet.
Connecting through Block 11 is the pedestrian
Wolfe Road crossing that takes visitors from
Town Square East to the roof and to Town
Square East across Block 9.
Block 11 has an entrance to the underground
parking structure serving the office structures
and mitigates traffic flow back onto Vallco
Parkway.
Block 12
Mixed-Use Block 12 has prime frontage along
Town Square East and Wolfe Road and is
comprised of approximately 240,000 square feet
of retail and offices. The approximately 405 feet
by 140 feet block houses ground floor retail and
commercial offices with a floor to floor height of
16 feet. Above the ground floor will be three
stories of most up-to-date, efficient, and flexible
Class-A office space with a floor to floor height of
15 feet.
Block 12 has two entry points to the below-grade
parking structure. The first is along Perimeter
Road where the decline in grade to go beneath
Wolfe Road provides an easy and convenient
access point to the parking basement. The at-
grade parking exiting along Wolfe Road will
assist in providing egress from the parking
structure without congesting the Hills at Vallco
with cueing vehicles.
42
APP-114
The Hills at Vallco | Project Description | September 2015
Block 13
Mixed-Use Block 13 has prime frontage along
Town Square East and Vallco Parkway and is
comprised of approximately 330,000 square feet
of retail and offices. The approximately 375 feet
by 140 feet block integrates ground floor retail
and commercial offices with a floor to floor height
of 16 feet. Above the ground floor will be five
levels of most up-to-date Class-A office space
with a floor to floor height of 15 feet that is
flexible for a multitude of tenant fit-outs and
different leasing configurations.
Block 14
Mixed-Use Block 14 has prime frontage along
Town Square East and is comprised of
approximately 280,000 square feet of retail and
offices. The approximately 260 feet by 140 feet
block integrates ground floor retail and
commercial offices with a floor to floor height of
16 feet. Above the ground floor will be five stories
of most up-to-date Class-A office space with a
floor to floor height of 15 feet that is flexible for a
multitude of tenant fit-outs and different leasing
configurations.
Block 15
Mixed-Use Block 15 has frontage along Vallco
Parkway and is comprised of approximately
460,000 square feet of retail and offices. This
approximately 490 feet by 140 feet block
integrates ground floor retail and most up-to-date
Class-A offices with a floor to floor height of 16
feet. Above, there are six levels of Class-A office
space with a floor to floor height of 15 feet. This
block is adjacent to the transit center serving the
offices.
Block 16
Mixed-Use Block 16 is comprised of
approximately 390,000 square feet of retail,
parking, and central plant spaces. The
approximately 425 feet by 140 feet block
integrates ground floor retail and parking with a
floor to floor height of 16 feet. Above, there are
eight parking levels containing approximately
1,000 cars with a floor to floor height of 10 feet.
On the top floors is the Central Plant located,
which will be shielded from views from the
adjacent neighborhoods.
43
APP-115
The Hills at Vallco | Project Description | September 2015
44
Buildings Mixed-Use
Block 1 Retail, Residential, Amenities, Parking
Block 2 Retail, Residential, Amenities, Parking
Block 3 Retail, Residential, Amenities
Block 4 Retail, Residential, Amenities, Parking
Block 5 Retail, Entertainment, Recreation, Sports, Amenities
Block 6 Retail, Entertainment, Recreation, Sports, Amenities
Block 7 Retail, Residential, Amenities
Block 8 Retail, Residential, Amenities, Parking
Block 9 Retail, Residential, Office, Amenities
Block 10 Retail, Office, Amenities
Block 11 Retail, Office, Amenities
Block 12 Retail, Office, Amenities
Block 13 Retail, Office, Amenities
Block 14 Retail, Office, Amenities
Block 15 Retail, Office, Amenities
Block 16 Retail, Parking, Amenities, Central Plant
APP-116
The Hills at Vallco | Project Description | September 2015
Site Information
Site Area (acres)50.8 acres
Site Net Area (acres)to be determined in collaboration with Cupertino
Site Coverage (percent)to be determined in collaboration with Cupertino
Total Hardscape Area (acres)to be determined in collaboration with Cupertino
Total Softscape Area (acres) to be determined in collaboration with Cupertino
Accessible Open Space Area
(acres)30 acres
Entitlements and Planning
General Plan Land Use
Designation
Commercial, Office, Hotel,
Residential
Zoning Designation Specific Plan,
Conformance Zoning
General Plan Special Area Vallco Shopping District adjacent to Heart of the City and
South Vallco Park Gateway
Proposed Uses Commercial, Office, Residential,
Civic, Open Space, Amenities
Hours of Operation to be determined
Number of Employees to be determined
Parking Spaces 9,175 total per Cupertino Zoning Code
Basement Parking 6,000 included in total spaces
LEED Goal Platinum Cupertino requires Silver
Number of Existing Trees 894
Number of Retained Trees 522
Number of Protected Trees 6 all 6 to be transplanted on site
Number of Proposed Trees 1,807 including retained trees
Site Grade Elevations
(feet above sea level)175' - 195'following existing topography
Soil Excavation/Off-Haul
(cubic yards)2,200,000
Top Soil Import (cubic yards)168,000
45
Data Table
APP-117
The Hills at Vallco | Project Description | September 2015
Building Information
Program Allocation
Commercial and Civic Area
(square feet)625,000
family friendly retail and
entertainment, including
restaurants, shops, AMC
Theater, ice rink, bowling alley,
community center, high school
Innovation Center, transit center,
or public amenities
Market Rate Apartments
Below Market Rate Apartments
Senior Apartments
680
80
40
10 % studios
40 % one bedroom
10 % one bedroom + den
38 % two bedroom
2 % penthouse
Office Area
(square feet)2,000,000 potential for incubators, start-
ups, emerging, or established
Silicon Valley companies
Hotel Rooms 0 148 rooms are existing in Vallco
Shopping District
Ancillary and Amenity Program
Residential and Office Amenities
Area (square feet)200,000
fitness center, conference
center, cafeteria, atrium,
pedestrian bridge, transit center,
or rooftop amenity spaces
Testing and Workshop Area
(square feet)175,000 office support spaces
Central Plant Area
(square feet)35,000
Loading, Facility and Security
Management Area
(square feet)
75,000
Building Heights
West of Wolfe Road
Building Blocks
0’ Perimeter Road
80’ center of site
70' Wolfe Road
83' - existing AMC Theater height
at Wolfe Road
East of Wolfe Road
Building Blocks
60’ Wolfe Road
110’ Hwy. 280
Rooftop Open Space
Amenity Spaces
single level pavilions in select
locations
46
APP-118
The Hills at Vallco | Project Description | September 2015
47
APP-119
The Hills at Vallco | Project Description | September 2015
Owner
Vallco Property Owner, LLC
Architect
Rafael Viñoly Architects
Landscape Architect
OLIN Partnership, LTD.
Civil Engineer
Sandis Civil Engineers Surveys Planner, Inc.
Transportation Engineer
ARUP North America, LTD.
Parking Planner
Watry Design, Inc.
Masterplan Consultant
Wolfgang Wagener
Retail Consultant
MRA International, Inc.
Open Space Consultant
HR&A Advisors, Inc.
School Consultant
SCI Consulting
Economic Impact Consultant
Keyser Marston Associates
Connectivity Consultant
Nelson Nygaard Consulting
Greenhouse Gas Emissions Consultant
Ramboll Environ
Recycled Water Consultant
Luk and Associates
Structural Engineer
Nabih Youssef Associates
Consulting Structural Engineer
DCI Engineers
Mechanical Engineer
ME Engineers
Climate Responsive Design Consultant
Transsolar
Sustainability Consultant
ARUP
LEED Consultant
Brightworks
48
Acknowledgements
APP-120
ATTACHMENT B: THE HILLS AT VALLCO DRAFT EIR PROJECT DESCRIPTION
The attached Draft EIR Project Description (December 8, 2015) was a working draft by the City and
its consultants for The Hills at Vallco EIR. The CEQA process (including the finalization of the EIR
project description) was placed on-hold indefinitely due to the Initiative. For this reason, the
attached project description is in draft form.
APP-121
Vallco Shopping District Specific Plan/ City of Cupertino
The Hills at Vallco (SCH# 2015102044) 1 Administrative Draft EIR, November 2015
SECTION 1.0 PROJECT INFORMATION
1.1 PROJECT LOCATION AND EXISTING DEVELOPMENT/USES
The approximately 58-acre Specific Plan area consists of multiple parcels 1 and is located at the North
Wolfe Road/Vallco Parkway and North Wolfe Road/Stevens Creek Boulevard intersections in the
City of Cupertino. The Specific Plan area is developed with the Vallco Shopping Mall. Regional
and vicinity maps of the Specific Plan area are shown on Figures 1.1-1 and 1.1-2, respectively.
The western portion of the Specific Plan area, west of North Wolfe Road, is approximately 38 acres
in size and bounded by Interstate 280 (I-280) to the north, North Wolfe Road to the east, Stevens
Creek Boulevard to the south, and Perimeter Road to the west. The western portion of the Specific
Plan area is currently developed with several buildings: a primary mall building which connects two
former anchor stores (Macy’s and Sears), a fitness gym (a satellite building formerly a Sears Auto
Center), a satellite restaurant building (formerly TGI Fridays), three parking structures, and surface
parking lots.
The eastern portion of the Specific Plan area, east of North Wolfe Road, is approximately 19 acres in
size and bounded by I-280 to the north, Perimeter Road to the east, Vallco Parkway to the south, and
North Wolfe Road to the west. The eastern portion of the Specific Plan area is developed with a
secondary mall building with an ice skating rink, bowling alley, and one anchor store (JCPenney),
mall retail shops, food court, a satellite restaurant building (Alexander’s Steakhouse), a parking
structure, and surface parking lots. A 148-room hotel was recently approved on the northern portion
of the eastern portion (Hyatt House Hotel2) on land owned by KCR Development (refer to Figure
1.1-3).
An enclosed, pedestrian bridge connects the mall buildings on the east and west sides of North Wolfe
Road. The enclosed bridge consists of retail shops on either side of an enclosed pedestrian walkway.
An aerial photograph of the Specific Plan area and the surrounding land uses is shown on Figure 1.1-
3. The surrounding land uses include residential and commercial uses to the west; a freeway (I-280),
hotel, residential, and office uses to the north; commercial, office, and residential mixed-uses to the
east; and commercial uses to the south.
1 Assessor Parcel Numbers: 316-20-080, -081, -082, -088, -092, -094, -095, -099, -100, -101, -103, -104, -105, -105,
and -107.
2 Application Nos. DP-2014-04, ASA-2014-06, U-2014-04, EXC-2014-07, TR-2014-28, TR-2014-40.
APP-122
Section 1.0 – Project Information
Vallco Shopping District Specific Plan/ City of Cupertino
The Hills at Vallco (SCH# 2015102044) 2 Administrative Draft EIR, November 2015
1.2 EXISTING GENERAL PLAN AND ZONING DESIGNATIONS
The City of Cupertino is organized into 21 General Plan “Planning Areas,” consisting of nine
“Special Areas” and 12 “Neighborhoods.” The Vallco Shopping District Special Area is the Specific
Plan area. The Vallco Shopping District Special Area is designated as
Commercial/Office/Residential in the City’s Land Use Map. The Commercial/Office/Residential
land use designation applies to mixed-use areas that are predominantly commercial and office uses.
Supporting residential uses may be allowed to offset job growth, to better balance the citywide jobs
to housing ratio, and when they are compatible with the primarily non-residential character of the
area. Development, both residential and non-residential, is subject to the numerical caps and other
policies in the City’s General Plan.
The Vallco Shopping District is also identified as a Priority Housing Element Site (Site A2) with 389
units allocated to the site in the General Plan Housing Element. Assuming a Specific Plan for the site
is adopted by May 31, 2018, pursuant to General Plan Housing Element Strategy 1, the Vallco
Shopping District is allocated 1.2 million square feet of commercial uses (which consists of a
minimum 600,000 square feet of retail uses, of which a maximum of 30 percent may be
entertainment uses), 2.0 million square feet of office uses, 339 hotel rooms, and 389 residential
dwelling units as specified in the City’s Housing Element. Pursuant to General Plan Strategy LU-
1.2.1, development allocations may be transferred between Planning Areas provided no significant
environmental impacts are identified beyond those already studied in the Community Vision 2040
Final EIR (SCH# 2014032007).3
The Specific Plan area is zoned P(Regional Shopping) – Planned Development Regional Shopping
north of Vallco Parkway, and P(CG) – Planned Development General Commercial south of Vallco
Parkway (west of North Wolfe Road).
3 Community Vision 2040 Final EIR analyzed the development of up to 1.2 million square feet of commercial uses,
2.0 million square feet of office uses, 339 hotel rooms, and 800 residential dwelling units within the Vallco
Shopping District area. There is residential allocation available in other Planning Areas which may be transferred to
the Vallco Shopping District without the need to amend the General Plan.
APP-123
Section 1.0 – Project Information
Vallco Shopping District Specific Plan/ City of Cupertino
The Hills at Vallco (SCH# 2015102044) 3 Administrative Draft EIR, November 2015
1.3 BACKGROUND INFORMATION
In the 1960s, 25 Cupertino families and property owners came together to develop the overall
scheme for the 300-acre business park known as Vallco Park. The name “Vallco” was constructed
from the first initials of each of the primary developers: Varian Associates and the Leonard, Lester,
Craft, and Orlando families. This included properties to the north and south of I-280 – currently both
the North Vallco Park Planning Area, South Vallco Park Planning Area, and the Vallco Shopping
District.
Ten years later, Vallco Shopping Mall was established as an approximately 50-acre retail component
within the larger 300-acre business park. Vallco Shopping Mall opened under the brand Vallco
Fashion Park in September 1976. When it was opened, Vallco Fashion Park was one of the largest
shopping malls in Silicon Valley, drawing visitors from throughout the region. Vallco Shopping
Mall thrived from the mid-1970s to the mid-1980s.
By the mid-1980s, Vallco Shopping Mall had begun to suffer from the inability to respond to the
changing demands of consumers and markets. Constraining factors included fragmented ownership,
reciprocal real estate agreements that restricted improvements unless agreed upon by all owners,
outdated infrastructure, inefficient parking layout, closure of anchor stores, and regional and sub-
regional competition.
Occupancy began to deteriorate at an accelerated rate in the 1990s and mall tenancy and quality of
tenants continued steadily declining into the mid-2000s. In the early 1990’s the mall had tried to
increase the mall occupancy by adding tenant space in the basement of the mall structure, however,
by the mid 2000’s due to the undesirability of these spaces, the mall boarded off access to this area of
the mall. In 2015, occupancy has dwindled to the point where vacant and papered storefronts
outnumber active storefronts. A handful of mall tenants, including AMC Theater, have continued to
perform well even throughout Vallco Shopping Mall’s leanest years.
In December 2014, the City Council adopted new General Plan goals, policies, and strategies
specifically relating to the Vallco Shopping District Special Area, within which Vallco Shopping
Mall is located. The City envisions a complete redevelopment of Vallco Shopping Mall site into a
“vibrant mixed-use town center” that is a focal point for regional visitors and the community.4 To
realize this community vision, the General Plan “requires a master developer in order to remove the
obstacles to the development of a cohesive district.”5
In December 2014, Sand Hill Property Company assembled approximately 50 acres within the
Vallco Shopping District. The remaining seven acres within the Vallco Shopping District are owned
by SIMEON and KCR Development. In October 2014, the City Council approved the development
of a 148-room, five-story hotel on the KCR Development property.6
4 City of Cupertino. Cupertino Community Vision 2040. December 4, 2014. Page LU-54.
5 General Plan Strategy LU-19.1.1.
6 Application Nos. DP-2014-04, ASA-2014-06, U-2014-04, EXC-2014-07, TR-2014-28, TR-2014-40.
APP-124
Section 1.0 – Project Information
Vallco Shopping District Specific Plan/ City of Cupertino
The Hills at Vallco (SCH# 2015102044) 4 Administrative Draft EIR, November 2015
1.4 PROJECT DESCRIPTION
The proposed project consists of two components: 1) the Vallco Shopping District Specific Plan and
2) The Hills at Vallco project. These two components are described in detail below.
1.4.1 Vallco Shopping District Specific Plan
[Note to City: This section to be completed pending submittal of Specific Plan, which will
include assumptions for the SIMEON parcel]
1.4.2 The Hills at Vallco Project
The Hills at Vallco is a redevelopment project proposed on the southern 50 acres of the Specific Plan
area (hereinafter referred to as the “project site”). Development of the northern seven acres of the
Specific Plan area is not proposed as part of The Hills at Vallco project.7
The Hills at Vallco project would include demolishing the existing buildings (mall, fitness gym, and
restaurant buildings) and parking facilities on-site and removing the existing pattern of internal
driveways and constructing a mixed-use “Town Center” with up to 650,000 square feet of
commercial uses (including retail, restaurant, event, entertainment, and fitness uses),8 2.0 million
square feet of office uses, and 800 residential units. The proposed office and residential uses would
include additional amenity space, which is described in Section 1.4.2.1 below. In addition,
approximately 40,000 square feet of civic/community space is proposed.
The Hills at Vallco project includes 411 more residential units than allocated to the Vallco Shopping
District area in the City’s Housing Element. However, the City’s General Plan has additional
housing units available in other Planning Areas that are not allocated to specific Housing Element
sites. 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 Community Vision 2040 Final EIR (SCH# 2014032007). While the General
Plan Housing Element allocation for the site is 389 units, the Community Vision 2040 Final EIR
analyzed the development of up to 800 residential dwelling units on the site and there is adequate
allocation in the General Plan to consider 411 additional units.
The Hills at Vallco project would consist of a 16-block layout of buildings, two central town square
plazas, and open space along a system of surface streets with the proposed land uses mixed both
vertically and horizontally. For all the blocks, the ground floor level would include retail uses and
the upper floors would have commercial (including entertainment), residential, and/or office uses. In
Blocks 9-16, office uses would also occupy the ground floor level. A map showing the blocks and
proposed uses for each block is shown on Figure 1.4-X.
7 The northern seven acres consists of two parcels, one owned by SIMEON and the other by KCR Development. A
148-room hotel (Hyatt House Hotel) was recently approved on the two-acre parcel owned by KCR Development.
8 The total 650,000 square feet of proposed commercial uses would be broken down as follows: a minimum of
420,000 square feet would be retail/restaurant uses, food establishments, and limited personal services; 180,000
square feet of which could be entertainment uses, and 50,000 square feet could be fitness uses.
APP-125
Section 1.0 – Project Information
Vallco Shopping District Specific Plan/ City of Cupertino
The Hills at Vallco (SCH# 2015102044) 5 Administrative Draft EIR, November 2015
It is intended that blocks at the southwest corner of the project site (Blocks 1-4, 7, and 8) would
consist of a mix of commercial and residential uses. Blocks 5 and 6 at the northwest corner of the
development site are proposed for commercial uses, including entertainment and retail uses
(including a movie theater, bowling alley, fitness center, and ice rink). Block 9 would consist of a
mix of commercial, office, and residential uses. Blocks 10-15 would consist of a mix of commercial
and office uses. Block 16 would consist of commercial uses and a Central Plant, which is discussed
in detail under Utility Improvements.
The proposed building heights would be within the maximum building heights identified for the
Vallco Shopping District Specific Plan. Buildings on the western portion of the site, on the west side
of North Wolfe Road, would be up to seven stories tall with a maximum building height of 80 feet.
The green roof on the western portion of the site would be up to 92 feet above ground level, with
rooftop buildings up to 102 feet above ground level. Buildings on the eastern portion of the site, on
the east side of North Wolfe Road, would be up to nine stories tall with a maximum building height
of 109 feet. The green roof on the eastern portion of the site would be up to 116 feet above ground,
with rooftop buildings up to 131 feet above ground.
The proposed building setbacks would be within the setbacks in the proposed Specific Plan.
Buildings would be setback at least 35 feet from the curb on Stevens Creek Boulevard, at least 25
feet from the curb on Vallco Parkway, at least 41 feet from the predominate curb line on North Wolfe
Road, and at least eight feet from the curb on Perimeter Road.
The Hills at Vallco project includes common open space (including two town squares totaling
approximately three acres and a 30-acre green roof) and landscaping, utility and transportation
infrastructure improvements, and school improvements. The proposed land uses and these other
project components are described below. A summary of the proposed project is provided in Table
1.4-1 at the end of this section.
1.4.2.1 Land Uses
Commercial Uses
The Hills at Vallco proposes 650,000 square feet of commercial uses on-site in the following
categories:
• 600,000 square feet would be retail/restaurant/event/entertainment uses, of which:
− 420,000 square feet would be retail/restaurant uses including large and small retail stores,
food establishments and limited personal services; and
− 180,000 square feet of which could be entertainment uses such as a movie theater (AMC
Theater), ice rink, and bowling alley.
• 50,000 square feet of indoor fitness uses.
APP-126
Section 1.0 – Project Information
Vallco Shopping District Specific Plan/ City of Cupertino
The Hills at Vallco (SCH# 2015102044) 6 Administrative Draft EIR, November 2015
Office Uses
Two million square feet of “Class-A” office space, including ancillary amenity spaces consisting of
fitness centers, shower and changing facilities for employees, a conference/event center, and
cafeterias, is proposed on-site. There would be an additional 345,000 square foot office amenity
space including:
• A 20,000 square foot conference hall on the green roof,
• A 15,000 square foot cafeteria/fitness center on the green roof,
• 175,000 square feet of testing and workshop area distributed throughout Blocks 11-16, and
• 135,000 square feet of meeting facilities, atrium, and other amenity spaces distributed
throughout Blocks 11-16.
Residential Uses
The Hills at Vallco would include 800 residential units consisting of 680 market-rate apartments, 80
below-market rate apartments, and 40 market-rate senior apartments. The residential uses would
include in-building amenities such as fitness, clubhouse, small format meeting rooms, resident
lounges, multi-media rooms, communal kitchens, and bike rooms within the residential mixed use
building. An additional 25,000 square feet of ancillary amenity space for the residential uses is
proposed on the green roof and would include a fitness center, clubhouse, and pool.
Other Uses
Civic/Community Uses
The Hills at Vallco would include approximately 40,000 square feet of civic/community uses
including an approximately 20,000 square foot community serving banquet hall on the green roof, an
approximately 10,000 square foot high school “Innovation Center” located on the western portion of
the site, approximately 5,000 square feet of civic meeting space located on the western portion of the
site, and an approximately 5,000 square foot building for the “Multi-Modal Transit Center.” The
high school Innovation Center is described in more detail in Section 1.4.2.6 and the Multi-Modal
Transit Center is described in more detail in Section 1.4.2.5.
Loading and Facility Management Uses
The Hills at Vallco would include approximately 75,000 square feet of loading, storage, facility, and
security management space integrated into each block to serve the retail, office, and residential uses
on-site.
APP-127
Section 1.0 – Project Information
Vallco Shopping District Specific Plan/ City of Cupertino
The Hills at Vallco (SCH# 2015102044) 7 Administrative Draft EIR, November 2015
1.4.2.2 Common Open Spaces and Landscaping
Town Squares
The Hills at Vallco would include two town squares: Town Square West on the west side of North
Wolfe Road and Town Square East on the east side of North Wolfe Road (refer to Figure 1.4-X).
Town Square West would be approximately 1.8 acres in size and Town Square East would be
approximately 1.1 acres in size. Both town squares would be programmable green space that would
act as a civic/community amenity and park.
Town Square West would be designed with a lawn, enhanced hardscape, landscaping (including
trees), and seating that would create a gathering space for outdoor events such as concerts, cultural
events, outdoor performances, and movies. These areas would be surrounded by hardscape that
could also host events and festivals or serve as exterior dining or social space. The applicant
proposes to have the flexibility to close some of the streets around the Town Square West to host
events and festivals.
Town Square East would be an open green space area that would serve as an amenity for the
surrounding retail and office blocks. Town Square East would include public open space features
such as a water feature, landscaping (including trees), and seating.
Direct pedestrian access to the below-ground parking garages would be provided from both town
squares.
Green Roof
The Hills at Vallco project would include a 30-acre green roof. The topography of the green roof
would vary and expand over the tops of the buildings on-site, and would eventually come to existing
grade at the western boundary of the site at Stevens Creek Boulevard. The green roof would include
landscaping and active and passive open spaces. The rooftop landscaping would consist of native
and/or drought tolerant species such as native oak trees, manzanita, needlegrass, and native sedges.
Not all areas of the green roof would be accessible to the public. The proposed green roof would
consist of the following five open space areas:
1. Oak Grove – The oak grove would be located on the western edge of the site and would
provide at-grade public pedestrian access to the green roof from Stevens Creek Boulevard.
This edge would be planted with canopy trees that would serve as a visual buffer to the
adjacent residential neighborhood.
2. Community Activities – The community activities would be located in the center of the green
roof and include active programmatic uses including a large play space and garden for
children, community meeting spaces, and amphitheater and performance spaces. Amenities
such as a café and wine bar may also be located within this area.
3. Vineyards – The vineyards would be located in the northeastern portion of the roof and
would include trails, as well as gathering and performance spaces.
APP-128
Section 1.0 – Project Information
Vallco Shopping District Specific Plan/ City of Cupertino
The Hills at Vallco (SCH# 2015102044) 8 Administrative Draft EIR, November 2015
4. Orchards – The orchards would include fruit trees and be located on the roof at the northwest
corner of Stevens Creek Boulevard and Wolfe Road. It is envisioned that the orchards,
together with the vineyards, would provide the community with agricultural-related
educational and seasonal activities.
5. Nature Preserve – The nature preserve would be located on the eastern and western portions
of the roof. The nature preserve would include open areas, landscaping, and trails, as well as
stormwater treatment control measures.
The green roof would include nine pavilions totaling approximately 115,000 square feet at various
locations on the roof (see Figure 1.4-X). These pavilions would serve a variety of purposes and
would be for community use, retail use, residential use, or office use.
Much of the green roof would be accessible to the general public. Some areas, however, would be
limited to the residents and office employees. The building square footages on the green roof would
be allocated as follows:
• A total of 35,000 square feet for commercial uses (i.e., 5,000 square foot wine tasting area,
20,000 square feet of retail pavilions, and a 10,000 square foot fitness area);
• 35,000 square feet for office uses (20,000 square foot conference hall and 15,000
cafeteria/fitness area); and
• 25,000 square feet for residential uses (e.g., fitness center, clubhouse, and pool)
• 20,000 square feet for a civic/community banquet hall.
The proposed open space areas and amenities on the green roof are shown on Figure 1.4-X.
Landscaping
Most of the landscaping on-site would be on the green roof, with additional landscaping in the town
squares and along the perimeter of the site and internal streets. The Hills at Vallco project would
preserve over 500 existing trees on-site and plant approximately 900 new trees on-site. The
landscaping and trees on-site would be irrigated with non-potable water from sources such as
municipal recycled water or on-site greywater and stormwater capture. Conceptual landscape plans
are shown on Figures 1.4-X – X.
1.4.2.3 Site Access, Circulation, and Parking
Vehicular Access and Parking
As shown on Figure 1.4-X, vehicles would access the site from driveways on Stevens Creek
Boulevard, Perimeter Road, Vallco Parkway, and North Wolfe Road. The Hills at Vallco would be
designed with a grid street pattern within the site, with Avenues A through D running north to south
and 1st through 7th Streets running east to west.
APP-129
Section 1.0 – Project Information
Vallco Shopping District Specific Plan/ City of Cupertino
The Hills at Vallco (SCH# 2015102044) 9 Administrative Draft EIR, November 2015
The Hills at Vallco would provide parking in accordance with the City’s Municipal Code parking
regulations outlined in Municipal Code Chapter 19.124. It is estimated that the project would include
a total of approximately 9,175 parking spaces, which would be provided in a below-ground parking
structure, on-street, and above-ground parking structures with a parking guidance system that would
direct vehicles to available parking spaces. Access to the parking facilities would be provided from
North Wolfe Road, Perimeter Road, and proposed internal streets, as shown on Figure 1.4-X.
Below-Ground Parking Structures
Parking for the proposed commercial uses, as well as some residential and office uses, would be
provided in two large underground parking garages connected by a tunnel. The underground parking
garages would be located under the entire project site and would include approximately 6,580
parking spaces. The below-ground parking garage on the west side of North Wolfe Road would be
one level and the below-ground parking garage on the east side of North Wolfe Road would be two
levels. A new tunnel under North Wolfe Road would be constructed to allow vehicular circulation
between two below-ground parking garages.
On-Street Parking and Above-Ground Parking Structures
The remaining 2,595 parking spaces would be provided on streets within the project site and in
above-ground parking structures. The on-street parking on-site is proposed to be short-term parking.
Long-term parking for the proposed residential and office uses would be provided in designated
parking structures that would be integrated into the blocks where the uses are proposed (Blocks 1, 2,
4, 8, and 16).
The parking facilities on-site are shown on Figures 1.4-X – X.
Transit Access
The proposed transit circulation for The Hills at Vallco is shown on Figure 1.4-X. As part of The
Hills at Vallco, the existing VTA bus stops on Stevens Creek Boulevard, Wolfe Road, and Vallco
Parkway would be improved by providing duck-outs and enhanced bus shelters per VTA
recommendations and lengthening the stops where necessary to accommodate multiple buses at one
time. It is intended that the existing bus stop on the north side of Stevens Creek Boulevard between
Wolfe Road and Perimeter Road would function as part of the proposed “Multi-Modal Transit
Center” where the proposed community shuttle (described below under Infrastructure
Improvements), VTA buses (specifically bus route 23 and 323), future Bus Rapid Transit, corporate
shuttles, and sharing economy transportation services (e.g., rideshare, bikeshare, and Zipcar) would
stop. It is envisioned that the Multi-Modal Transit Center would be an information center, drop-off
point, bike sharing distribution point, and stop for the community shuttle and other forms public
transit.
In addition, The Hills at Vallco would include dedicated curbside areas for commuter shuttles and a
complementary community shuttle (in coordination and partnership with the City, VTA, and
corporate employers) near the intersection of Vallco Parkway and Perimeter Road. The proposed
APP-130
Section 1.0 – Project Information
Vallco Shopping District Specific Plan/ City of Cupertino
The Hills at Vallco (SCH# 2015102044) 10 Administrative Draft EIR, November 2015
transportation infrastructure improvements are described in more detail below in Section 1.4.2.5
below.
Bicycle Access
The proposed bicycle facilities on-site are shown on Figure 1.4-X. Bicycle facilities, including bike
trails and Class I-III bikeways, would follow the proposed street grid pattern. The proposed bicycle
facilities on-site would connect to the existing bikeways on North Wolfe Road, Vallco Parkway, and
Stevens Creek Boulevard. Within the project site, bike improvements such as bike lanes painted
green, bike lane sharing arrows (sharrows), and bike boxes are proposed.9 A shared use path for
bicyclists and pedestrians is proposed on Perimeter Road.
Short-term bicycle parking racks would be provided in areas accessible to the public and other users
of the site. In addition, bicycle lockers, indoor bicycle parking, and charging areas for electric
bicycles would be provided throughout the project site. Bicycle repair stations, which would include
tools necessary to perform basic bike repairs and maintenance such as bike pumps and work stands,
are also proposed throughout the site. Within the proposed mixed-use office buildings, showers and
changing facilities for office employees would be provided. A bike hub is proposed on the western
portion of the project site and would include community space, bike repair services, and retail
services operated by a third party vender.
Pedestrian Access
The proposed pedestrian facilities on-site are shown on Figure 1.4-X. All pedestrian connections
and facilities would meet Americans with Disabilities Act (ADA) accessibility standards.
Pedestrian sidewalks would follow the proposed street grid pattern. To accommodate the proposed
bicycle lanes and designated commuter shuttle curbside stop areas on Perimeter Road, the sidewalks
on the opposite side of the development site on Perimeter Road would be reconfigured. The Hills at
Vallco project includes replacing the existing enclosed bridge over North Wolfe Road with a
pedestrian bridge that would connect the town squares East and West (refer to Figure 1.4-X).
Pedestrians would be able to access the proposed green roof from the town squares, at the
intersection of Perimeter Road and Stevens Creek Boulevard, and near the intersection of North
Wolfe Road and Vallco Parkway. Figure 1.4-X shows the pedestrian access points to the green roof,
as well as the meandering pedestrian pathways on the roof. In addition, the proposed green roof
would also connect across North Wolfe Road above the pedestrian bridge. The project also would
include pedestrian connections to the two properties north of Perimeter Road (the SIMEON property
and the KCR Development/Hyatt House property) and the future I-280 trail.
9 A bike box is a designated area at the head of a traffic lane at a signalized intersection that provides bicyclists with
a safer and more visible way to get in front of queuing traffic during the red signal phase.
APP-131
Section 1.0 – Project Information
Vallco Shopping District Specific Plan/ City of Cupertino
The Hills at Vallco (SCH# 2015102044) 11 Administrative Draft EIR, November 2015
Transportation Demand Management Program
The Hills at Vallco includes a Transportation Demand Management (TDM) program to encourage
alternative modes of transportation to single-occupancy vehicle trips. Specifically, the TDM
program may include trip reduction features such as:
• Carpool, carshare, and rideshare;
• Complementary community shuttle in coordination and partnership with the City, VTA, and
corporate employers;
• Bicycle repair stations, hub, parking, and wayfinding features on-site;
• Shower and changing facilities for office employees on-site;
• A Multi-Modal Transit Center on-site that supports carpool, carshare, and rideshare
programs;
• Electric vehicle parking on-site; and
• Financial incentives for future tenants and employees to walk, bicycle, or take transit.
1.4.2.4 Utility Improvements
Central Plant
The Hills at Vallco includes a “Central Plant” at the northern portion of Block 16, adjacent to I-280.
The Central Plant would provide centralized heating and cooling to the project. The Central Plant
would consist of a 10,000 ton condenser water system which would serve as a heat sink/source for
individual water cooled HVAC systems throughout the development. In addition, a 16,000 ton per
hour ice plant would be used for off hour thermal storage.
The Central Plant would contain cooling towers in the upper stories of the parking structure on the
northeast corner of the project site. The Central Plant would house conventional cooling and heating
equipment including a boiler plant, a pump house, and switchgear. The heat pumped water for
heating and cooling of the buildings on-site would be distributed throughout the site from the Central
Plant via piping installed in the below-ground parking area.
Emergency Back-Up Generators
The project includes back-up generators to power the site in the event of a power outage. It is
anticipated that the project would include 20 back-up building generators and two back-up parking
garage generators.
Storm Drain
Currently, there is an existing storm drain line that runs north down North Wolfe Road and cuts
through a portion of the project site. The Hills at Vallco would redirect the existing stormwater
drainage on North Wolfe Road to flow to Vallco Parkway (instead of through the project site) and
then east down Vallco Parkway to the intersection with Perimeter Road. A new public storm drain is
proposed to be installed in Perimeter Road in the public utility easement for discharge into the Santa
APP-132
Section 1.0 – Project Information
Vallco Shopping District Specific Plan/ City of Cupertino
The Hills at Vallco (SCH# 2015102044) 12 Administrative Draft EIR, November 2015
Clara Valley Water District Junipero Serra Channel located along I-280. All existing laterals and
catch basins at the project site are proposed to be reconnected to this new line. Figure 1.4-X shows
the existing and proposed storm drain system serving the project site.
Sanitary Sewer
Currently, there is an existing sewer main that runs north on North Wolfe Road and cuts through a
portion of the project site. The Hills at Vallco would reroute the main that flows north in North
Wolfe Road to flow to Vallco Parkway to the intersection with Perimeter Road. A new sewer main
is proposed in Perimeter Road within the public utility easement. The new pipe in Perimeter Road
would be connected to a pipe system that crosses I-280. All existing laterals in Vallco Parkway are
proposed to be reconnected to the new sewer main in Perimeter Road.
The existing pipe that crosses I-280 is not of sufficient size to serve the proposed development. The
existing sewer main line would need to be upsized, or a parallel pipe system would need to be
installed, in order to provide adequate sewer for the development and other properties currently
served by the main. Upsized (or parallel line) would need to extend from Perimeter Road, across I-
280, north on North Wolfe Road to the intersection of Pruneridge Ave. Sizing and extent of
improvements are dictated by the Cupertino Sanitary District’s sewer model. Figure 1.4-X shows the
existing and proposed options (upsizing and parallel line) for sewer service for the project site.
Water
Currently, there is an existing water main that runs north to south in North Wolfe Road and enters the
project site. The Hills at Vallco would reroute the main line that runs down North Wolfe Road and
direct it to new main lines in Perimeter Road. These new main lines would be reconnected to the
water main in I-280. All building fire water is proposed to be served by the new water mains in
Perimeter Road. Figure 1.4-X shows the existing and proposed water lines serving the project site.
Recycled Water
Recycled water infrastructure is currently being extended to serve the planned Apple Campus 2 and
Hamptons Apartments project north of the project site. The project includes the extension of the
recycled water infrastructure approximately 0.8 miles from Pruneridge Avenue, under I-280 to the
project site. Recycled water would be used on-site for irrigation and heating and cooling systems.
Other
The Hills at Vallco would connect to existing underground gas lines, communication lines, and
electric lines in the project area. [Note to Applicant: Are any PG&E upgrades required?]
APP-133
Section 1.0 – Project Information
Vallco Shopping District Specific Plan/ City of Cupertino
The Hills at Vallco (SCH# 2015102044) 13 Administrative Draft EIR, November 2015
1.4.2.5 Transportation Improvements
Roadway/Vehicular Circulation Improvements
The Hills at Vallco includes a new signalized intersection on North Wolfe Road between Vallco
Parkway and the I-280 interchange to allow for left turns into the eastern portion of the project from
southbound North Wolfe Road. This intersection would replace the existing on and off ramps from
North Wolfe Road to Perimeter Road and would include bicycle and pedestrian crossings at grade
across North Wolfe Road. Adaptive traffic signal management improvements (i.e., traffic signal
timing upgrades) would also be completed between Stevens Creek Boulevard and I-280 to improve
vehicular traffic flow on North Wolfe Road.
The Hills at Vallco would modify the existing Perimeter Road tunnel to provide adequate height
clearance for service vehicles, trucks, and emergency vehicles and to build an additional tunnel under
North Wolfe Road to connect the parking basements on the east and west sides of North Wolfe Road.
Transit Improvements
The project proponent proposes to coordinate and partner with the City, VTA, and corporate
employers to fund a complimentary community shuttle for Cupertino residents and employees with
stops at key locations within the City including, but not limited to, the library, Civic Center,
Memorial Park, De Anza College, local high school(s), and Apple Campus 2.
The Hills at Vallco includes the improvement of the existing VTA bus stops on Stevens Creek
Boulevard, North Wolfe Road, and Vallco Parkway by constructing bus duck-outs and enhanced bus
shelters per VTA recommendations and lengthening the stops where necessary to accommodate
multiple buses at one time. The Hills at Vallco would establish a “Multi-Modal Transit Center”
where the existing bus stop is currently located on the north side of Stevens Creek Boulevard
between North Wolfe Road and Perimeter Road. The Multi-Modal Transit Center would include an
approximately 5,000 square foot building, seating areas, information kiosks, and state of the art real-
time transit information. A pedestrian entrance plaza to the Transit Center would be located on
Stevens Creek Boulevard.
Dedicated curbside areas for commuter shuttles near the intersection of Vallco Parkway and
Perimeter Road are also proposed. The dedicated curbside areas would be large enough for several
commuter shuttles to load/unload at one time.
Bicycle and Pedestrian Improvements
To facilitate bicycle and pedestrian movement, the Hills at Vallco would restripe and color bicycle
lanes on North Wolfe Road from Stevens Creek Boulevard to I-280 where appropriate as determined
by the City; improve sidewalks along North Wolfe Road from Stevens Creek Boulevard to I-280 by
installing pedestrian-scale lighting and street furniture; and replace the existing, enclosed bridge over
North Wolfe Road with an open pedestrian bridge.
APP-134
Section 1.0 – Project Information
Vallco Shopping District Specific Plan/ City of Cupertino
The Hills at Vallco (SCH# 2015102044) 14 Administrative Draft EIR, November 2015
1.4.2.6 School Improvements
Cupertino Union School District
The Hills at Vallco project includes an education facilities and programs investment for Cupertino
Union School District consisting of the following:
• Construction of a new 700-student elementary school at the former site of the Nan Allan
Elementary School located at 10255 North Portal Avenue in Cupertino;
• Replacement of all portable/temporary classrooms at Collins Elementary School located at
10300 North Blaney Avenue with permanent classrooms;
• Improvement of school playing fields at the former Nan Allan Elementary School and
Collins Elementary School;
• Creation and funding of a $1 million endowment for the 8th grade Yosemite Science
Program; and
• Payment of the required school impact fee pursuant to California Government Code Section
65996.
A conceptual site plan of the improvements at Collins Elementary School and the former Nan Allan
Elementary School is shown on Figure 1.4-X.
Fremont Union High School District
The Hills at Vallco project includes an education facilities and programs investment for Fremont
Union High School District that includes a new 10,000 square foot, turn-key “Innovation Center” at
the development site. The Innovation Center would be a flexible, multi-use space that would be
leased to the Fremont Union High School for high school students to build projects in collaboration
with the community.10 The Innovation Center is envisioned to serve as:
• Student-led business incubator;
• Work-based learning initiatives hub;
• Robotics team competition arena;
• Multi-disciplinary brainstorming and prototyping space;
• Centrally-located classroom for students from all five high school campuses within the
school district;
• Performance space; and
• Exhibition space.
In addition, the project would pay the required school impact fee pursuant to California Government
Code Section 65996.
10 The project would lease the Innovation Center to the Fremont Union High School District for a term of 34 years at
for $1 per year.
APP-135
Section 1.0 – Project Information
Vallco Shopping District Specific Plan/ City of Cupertino
The Hills at Vallco (SCH# 2015102044) 15 Administrative Draft EIR, November 2015
1.4.2.7 Green Building Measures
The Hills at Vallco is proposed to be designed and constructed to meet or exceed the requirements of
the current 2013 California Green Building Standards Code and the 2013 California Energy Code. It
is proposed that The Hills at Vallco achieve LEED Platinum certification. The Hills at Vallco would
achieve LEED Platinum by incorporating green building measures including, but not limited to:
• Constructing a 30-acre green roof;
• Incorporating water conservation measures (e.g., utilizing municipal recycled water for
landscape irrigation, cooling towers, and toilet flushing; collecting rainwater for irrigation;
utilizing drip irrigation for all landscape trees; and installing low-flow and ultra-low flow
plumbing fixtures);
• Designing the buildings to utilize natural ventilation and daylight;
• Implementing energy design strategies such as low energy systems, displacement ventilation,
LED lighting, load scheduling, and others; and
• Installing on-site photovoltaic systems.
1.4.2.8 Construction
It is anticipated that the project would be constructed over five years, commencing in 2017 and
concluding in 2022. Staging of construction equipment and vehicles would primarily be on-site with
some staging within the public right-of-way for the improvement/construction of the tunnels under
North Wolfe Road and the bridge over North Wolfe Road. Details about the construction phasing,
demolition, grading, and excavation are provided below.
Phasing
According to the applicant, the demolition of Vallco Shopping Mall and construction of The Hills at
Vallco would be phased as follows:
• Phase 1 – The demolition and construction activities would start at the northwestern portion
of the development site, in the location of the former Macy’s and Macy’s parking structure.
Demolition and construction would occur concurrently on the east side of North Wolfe Road
where JCPenney and parking areas are located.
• Phase 2 – Once Blocks 5 and 6 are constructed on the northwest portion of the site, the
existing movie theaters (AMC Theater), bowling alley, fitness center, and ice rink would be
relocated to the newly constructed mixed-use buildings on these blocks. The construction is
planned to be phased this way to minimize disruption in operation for these businesses. Once
the movie theaters, bowling alley, fitness center and ice rink are relocated, demolition and
construction would continue south towards Stevens Creek Boulevard and on the remaining
areas on the east side of North Wolfe Road. The applicant intends to construct the proposed
residential mixed-use blocks (Blocks 1-9) in the final phase of the project.
APP-136
Section 1.0 – Project Information
Vallco Shopping District Specific Plan/ City of Cupertino
The Hills at Vallco (SCH# 2015102044) 16 Administrative Draft EIR, November 2015
Demolition, Grading, and Excavation
The Hills at Vallco would require demolition of the existing improvements on-site including the
large shopping mall that includes basements and retaining walls. Demolition materials including
concrete, asphalt, and base rock may be recycled and reused on-site. A concrete crusher would be
used on-site and located on the eastern portion of the project site, east of North Wolfe Road.
The site elevations would generally follow the existing topography of the site in order to minimize
grading, excavation, and reworking of the existing roads.
The Hills at Vallco would include two large below-ground parking garages. The maximum depth of
excavation for the below-ground parking garage on the west side of North Wolfe Road would be
approximately 20 feet and approximately 31 feet for the below-ground parking garage on the east
side of North Wolfe Road. It is anticipated that approximately 2.2 million cubic yards of soil would
be excavated for the proposed below-ground garages and most of the excavated soil would be hauled
off-site. The applicant anticipates that the soiled hauled off-site would be used at another
construction site within 20 miles of the project site.
Some of the soil excavated is proposed to be used on the green roof and at-grade landscaped areas. It
is estimated that 168,000 cubic yards of soil would need to be imported to the site. The imported soil
would be used as topsoil on the green roof and mixed with existing soil on-site.
Table 1.4-X: Summary of The Hills at Vallco Project*
Land Use
Commercial Total of 650,000 square feet of commercial uses located in all blocks of the project,
consisting of:
• 600,000 square feet of retail/restaurant/event/entertainment uses, of which:
− A minimum of 420,000 square feet would be retail/restaurant uses including
large and small retail stores, food establishments, and limited personal services;
and
− 180,000 square feet of which could be entertainment uses such as a movie
theater, ice rink, and bowling alley.
• 50,000 square feet of fitness uses (10,000 square feet of which would be located on
the green roof).
Office • A total of 2.0 million square feet of office uses located in Blocks 9-16.
• An additional 345,000 square feet of amenity space solely for the office uses
including a 20,000 square foot conference hall on the green roof, 15,000 square foot
cafeteria/fitness area on the green roof, a total of 175,000 square foot testing and
workshop space in Blocks 11-16, and a total of 135,000 square feet of other amenity
spaces in Blocks 11-16.
Residential Total of 800 residential dwelling units located in Blocks 1-4 and 7-9, consisting of:
• 680 market-rate apartments;
• 80 below-market rate apartments; and
• 40 market-rate senior apartments.
APP-137
Section 1.0 – Project Information
Vallco Shopping District Specific Plan/ City of Cupertino
The Hills at Vallco (SCH# 2015102044) 17 Administrative Draft EIR, November 2015
Table 1.4-X: Summary of The Hills at Vallco Project*
• An additional 25,000 square feet of amenity space solely for residents on the roof
including a fitness center, clubhouse, and pool.
Civic/Community • 20,000 square foot community banquet hall on the green roof,
• 10,000 square foot high school Innovation Center located in the western portion of
the site,
• 5,000 square foot civic meeting space located in the western portion of the site, and
• 5,000 square foot “Multi-Modal Transit Center.”
Common Open Spaces/Landscaping
Town Squares Approximately 1.8-acre Town Square West and approximately 1.1-acre Town Square
East. Both town squares would have programmable green space for community events
and activities.
Green Roof 30-acre green roof would include landscaping, active and passive open spaces, and nine
pavilions totaling approximately 115,000 square feet. The pavilions would serve a variety
of purposes and would either be for community, retail, residential, or office uses.
• Green roof would have five distinct areas: oak grove, community activities,
vineyards, orchards, and nature preserve. Much of the green roof would be accessible
to the public.
• The building square footages on the green roof would be allocated as follows:
− A total of 35,000 square feet for commercial uses (i.e., 5,000 square foot wine
tasting area, 20,000 square feet of retail pavilions, and a 10,000 square foot
fitness area);
− 35,000 square feet for office uses (20,000 square foot conference hall and 15,000
cafeteria/fitness area); and
− 25,000 square feet for residential uses (e.g., fitness center, clubhouse, and pool)
− 20,000 square feet for a civic/community banquet hall.
Landscaping Most landscaping would be on the green roof with additional landscaping in the town
squares and along the perimeter of the site and internal streets.
Access, Circulation, and Parking
Vehicular Access
and Parking
Grid street pattern proposed throughout site with Avenues A-D running north and south
and 1st-7th Streets running east and west. Vehicles would be able to access the on-site
street network from Stevens Creek Boulevard, Perimeter Road, and North Wolfe Road.
Parking would be provided in a large below-ground parking garage, on-street, and at-
grade parking structures. Proposed residential and office uses would have designated at-
grade parking structures.
Transit Access Existing bus stops on the project site frontage on Stevens Creek Boulevard, North Wolfe
Road, and Vallco Parkway would be improved with duck-outs and enhanced bus shelters
per VTA recommendations. The existing bus stop on the north side of Stevens Creek
Boulevard between North Wolfe Road and Perimeter Road would function as a “Multi-
Modal Transit Center.” Dedicated curbside areas for commuter shuttles are proposed near
the intersection of Vallco Parkway and Perimeter Road.
Bicycle Access and
Parking
New bike trails and Class I-III bikeways are proposed to follow the street grid pattern on-
site. The proposed bicycle facilities would connect to existing bikeways on North Wolfe
Road, Vallco Parkway, and Stevens Creek Boulevard. Bicycle parking racks, lockers, and
charging areas for electric bicycles are proposed on-site. A bike hub is proposed on the
western portion of the site.
Pedestrian Access New pedestrian trails and sidewalks are proposed to follow the street grid pattern on-site.
The existing enclosed bridge over North Wolfe Road would be replaced with a landscaped
APP-138
Section 1.0 – Project Information
Vallco Shopping District Specific Plan/ City of Cupertino
The Hills at Vallco (SCH# 2015102044) 18 Administrative Draft EIR, November 2015
Table 1.4-X: Summary of The Hills at Vallco Project*
pedestrian bridge that would connect the two proposed town squares. The green roof
would be accessible from the town squares, at the western site boundary at Stevens Creek
Boulevard, and near the intersection of North Wolfe Road and Vallco Parkway.
Transportation
Demand
Management
Program
Encourage alternative modes of transportation by including features such as:
• Carpool, carshare, and rideshare;
• Complementary community shuttle in coordination and partnership with the City,
VTA, and corporate employers;
• Bicycle repair stations, hub, parking, and wayfinding features on-site;
• Shower and changing facilities for office employees on-site;
• A Multi-Modal Transit Center on-site that supports carpool, carshare, and rideshare
programs;
• Electric vehicle parking on-site; and
• Financial incentives for future tenants and employees to walk, bicycle, or take transit.
Utility Improvements
Central Plant A central heating, ventilation, and air conditioning system for the entire project consisting
of a 10,000 ton condenser water system and 16,000 ton per hour ice plant located in Block
16.
Back-Up Generators 20 back-up building generators and two back-up parking garage generators
Storm Drain,
Sanitary Sewer,
Water
• Rerouting the existing stormwater drainage on North Wolfe Road to flow to Vallco
Parkway to a new, proposed storm drain line in Perimeter Road. The new storm drain
line would discharge into the Junipero Serra Channel.
• Rerouting the sewer main that flows north in North Wolfe Road to flow to Vallco
Parkway to a new, proposed sewer main in Perimeter Road. The new sewer main
would connect to an existing sewer main that crosses I-280.
• Rerouting the water main in North Wolfe Road that enters the project site to new
water main lines proposed in Perimeter Road. These new water mains would connect
to an existing water main in I-280.
Recycled Water • Extending the existing recycled water infrastructure that is located north of the site
under I-280, south on North Wolfe Road to Stevens Creek Boulevard.
Transportation Improvements
Roadway/Vehicular
Circulation
• Constructing a new signalized intersection on North Wolfe Road between Vallco
Parkway and the I-280 interchange.
• Modifying the existing tunnel under North Wolfe Road to allow for east-west access
for emergency and service vehicles, by providing adequate height clearances.
• Building an additional tunnel under North Wolfe Road to connect the proposed
parking basements on the east and west sides of North Wolfe Road.
Transit • Funding a complementary community shuttle in coordination and partnership with the
City, VTA, and corporate employers.
• Improving existing bus stops along the project site frontage.
• Designating the existing bus stop on the north side of Stevens Creek between North
Wolfe Road and Perimeter Road as a “Multi-Modal Transit Center,” which would
include an associated 5,000 square foot building.
• Dedicating curbside areas for commuter shuttles near the intersection of Vallco
Parkway and Perimeter Road.
Bicycle and
Pedestrian
• Restriping and coloring bicycle lanes on North Wolfe Road from Stevens Creek
Boulevard to I-280.
APP-139
Section 1.0 – Project Information
Vallco Shopping District Specific Plan/ City of Cupertino
The Hills at Vallco (SCH# 2015102044) 19 Administrative Draft EIR, November 2015
Table 1.4-X: Summary of The Hills at Vallco Project*
• Improving sidewalks along North Wolfe Road from Stevens Creek Boulevard to I-
280 by installing pedestrian-scale lighting and street furniture.
• Replacing the existing, enclosed bridge over North Wolfe Road with a pedestrian
bridge.
School Improvements
Cupertino Union
School District
• Constructing a new 700-student elementary school located at 10255 North Portal
Avenue in Cupertino;
• Replacing all portable/temporary classrooms at Collins Elementary School with
permanent classrooms;
• Improving the existing play fields at Collins Elementary School;
• Creating and funding of $1 million endowment for the 8th grade Yosemite Science
Program; and
• Paying the required school impact fee pursuant to California Government Code
Section 65996.
Fremont Union
High School District
• Constructing a 10,000 square foot High School “Innovation Center” on-site available
to the High School District for rent for 34 years; and
• Paying the required school impact fee pursuant to California Government Code
Section 65996.
Building and Construction Details
LEED Platinum (or
equivalent)
Incorporate green building measures including, but not limited to, a 30-acre green roof,
water conservation measures, building design to utilize natural ventilation and daylight,
energy design strategies, and on-site photovoltaic systems.
Demolition and
Construction
The existing Vallco Shopping Mall would be demolished. Construction would be phased
and the development project is estimated to be completed in a total of five years. Staging
of construction equipment and vehicles would primarily be on-site. Approximately 2.2
million cubic yards of soil would be excavated and most of the excavated soil would be
hauled off-site. Approximately 168,000 cubic yards of clean soil would be imported to
the site.
Note: * This table provides a summary of the main details of The Hills at Vallco project proposal. Refer to the
text of the project description (Section 1.4.2) for complete details.
APP-140
Section 1.0 – Project Information
Vallco Shopping District Specific Plan/ City of Cupertino
The Hills at Vallco (SCH# 2015102044) 20 Administrative Draft EIR, November 2015
1.5 PROJECT OBJECTIVES
1.5.1 City Objectives
According to the City’s Community Vision 2040, the City envisions the Vallco Shopping District as
a new mixed-use “town center” and gateway for Cupertino. The area will become a primary regional
destination for shopping, dining and entertainment, providing the City with additional sales tax
revenue generators.
The vision for the site includes an interconnected street grid network of bicycle and pedestrian-
friendly streets, more pedestrian-oriented buildings with active uses lining Stevens Creek Boulevard
and North Wolfe Road, and publicly-accessible parks and plazas that support a pedestrian-oriented
feel of the revitalized area.
New development in the Vallco Shopping District will provide buffers between adjacent single-
family neighborhoods in the form of boundary walls, setbacks, landscaping, and/or building
transitions.
The project will leverage Cupertino’s centralized location between the Peninsula and South Bay
Area, providing travelers with high-quality lodging accommodations. Guests would be located
conveniently just steps away from various retail stores and service establishments located along the
ground floor. Nearby anchor restaurants would provide opportunities for formal or informal
engagements.
The Shopping District will place an emphasis on human scale, providing public spaces and activity
nodes that are easily accessible by active modes of travel through an intuitively connected street grid
network. High-quality materials and architectural elements will aid in creating a sense of place and
enhance the “town center” aesthetic. Pedestrian-oriented buildings differentiated by appropriate
street, block and building typology will distinguish public realms, transition areas and areas of open
space. This will elicit interest, exploration and interaction from both residents of the new
development and visitors alike.
The Vallco Shopping District will provide dwelling units on the upper floors of the mixed-use
development above the commercial and active uses on the ground floor. The residential units will
bolster the supply of available housing for all socio-economic segments and help the City to meet the
identified regional housing need as detailed in the Housing Element of the 2040 General Plan.
The intimate town center environment will appeal to active seniors seeking to improve their quality
of life, allowing them to be in close proximity to goods and services.
The allure of reduced commute times, accessibility to public transit and variety of food and
entertainment options will attract both employers and professionals to work for the companies
occupying the amenity rich office space incorporated into the Town Center.
APP-141
Section 1.0 – Project Information
Vallco Shopping District Specific Plan/ City of Cupertino
The Hills at Vallco (SCH# 2015102044) 21 Administrative Draft EIR, November 2015
In summary, the City’s project objectives are to adopt a Vallco Shopping District Specific Plan that
will facilitate the following:
• Creation of a new mixed-use Town Center involving complete redevelopment of the Vallco
Shopping Mall site; and
• Implement the Goals, Policies and Strategies of the General Plan listed below.
Strategies/
Policies/Goals
Description
Goal LU-19 Create a distinct and memorable mixed-use “Town Center” that is a regional destination and a
focal point for the community.
Policy LU-
19.1
Create a Vallco Shopping District Specific Plan prior to any development on the site that lays
out the land uses, design standards and guidelines, and infrastructure improvements required.
Strategy LU-
19.1.1
Redevelopment will require a master developer in order to remove the obstacles to the
development of a cohesive district with the highest levels of urban design.
Strategy LU-
19.1.2
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.
Strategy LU-
19.1.3
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.
Strategy LU-
19.1.4
The following uses are allowed on the site:
Retail: High-performing retail, restaurant, and entertainment uses. Maintain a minimum of
600,000 square feet of retail that provides 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.
Hotel: Encourage a business class hotel with conference center and active uses including
main entrances, lobbies, retail, and restaurants on the ground floor.
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.
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.
Strategy LU-
19.1.5
Create streets and blocks laid out using “transect planning,” 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.
Strategy LU-
19.1.6
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, bike-able 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.
APP-142
Section 1.0 – Project Information
Vallco Shopping District Specific Plan/ City of Cupertino
The Hills at Vallco (SCH# 2015102044) 22 Administrative Draft EIR, November 2015
Strategies/
Policies/Goals
Description
Strategy 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 and Main Street.
Strategy LU-
19.1.8
Open space in the form of a central town square on the west and east sides of the district
interspersed with plazas and “greens” that create community gathering spaces, locations for
public art, and event space for community events.
Strategy LU-
19.1.9
Buildings should have high-quality architecture, and an emphasis on aesthetics, human scale,
and create a sense of place. Additional heights may be approved in specific areas by the City
Council as part of the Community Benefits Program and per heights allowed in the
Community Form Diagram. Taller buildings should provide appropriate transitions to fit into
the surrounding area.
Strategy LU-
19.1.10
High-quality buildings with architecture and materials befitting the gateway character of the
site. The project should provide gateway signage and treatment.
Strategy LU-
19.1.11
A phasing plan that lays out the timing of infrastructure, open space and land use
improvements that ensures that elements desired by the community are included in early
phases.
Strategy LU-
19.1.12
Parking in surface lots shall be located to the side or rear of buildings. Underground parking
beneath buildings is preferred. Above grade structures shall not be located along major street
frontages. In cases, where above-grade structures are allowed along internal street frontages,
they shall be lined with retail, entries and active uses on the ground floor. All parking
structures should be designed to be architecturally compatible with a high-quality “town
center” environment.
Strategy LU-
19.1.13
Retain trees along the Interstate 280, Wolfe Road and Stevens Creek Boulevard to the extent
feasible, when new development are proposed.
Strategy LU-
19.1.14
Consider buffers such as setbacks, landscaping and/or building transitions to buffer abutting
single-family residential areas from visual and noise impacts.
The project should also be consistent with the following General Plan strategies, policies, and goals
listed below.
Strategies/
Policies/Goals
Description
Strategy LU-
13.7.1
Provide active uses along the street frontage, bike lanes, sidewalks that support pedestrian-
oriented activity, improved pedestrian crossings at street intersections, and attractive transit
facilities (e.g., bus stops, benches, etc.).
Goal HE-1
An adequate supply of residential units for all economic segments.
Goal HE-2
Housing is affordable for a diversity of Cupertino households.
APP-143
Section 1.0 – Project Information
Vallco Shopping District Specific Plan/ City of Cupertino
The Hills at Vallco (SCH# 2015102044) 23 Administrative Draft EIR, November 2015
Strategies/
Policies/Goals
Description
Strategy HE-1
Provide adequate capacity through the Land Use Element and Zoning Ordinance to
accommodate the RHNA of 1,064 units while maintaining a balanced land use plan that offers
opportunities for employment growth, commercial/retail services, and amenities.
Policy HE-1.1
Designate sufficient land at appropriate densities to accommodate Cupertino’s Regional Housing
Needs Allocation of 1,064 units for the 2014-2022 projection period.
Policy HE-1.2
Provide a full range of densities for ownership and rental housing.
Policy ES-7.2 Strategies for the use of pervious walkways and driveways should be explored.
Policy HE-1.3 Encourage mixed-use development near transportation facilities and employment centers.
Strategy ES-
7.11.4
Encourage and promote the use of recycled water in public and private buildings, open space and
streetscape planting.
Strategy ES-
7.11.5
Encourage on-site water recycling including rainwater harvesting and gray water use.
Policy HS-3.7 Ensure that adequate fire protection is built into the design of multi-story buildings and require
on-site fire suppression materials and equipment.
Strategy HS-
8.2.1
Locate delivery areas for new commercial and industrial developments away from existing or
planned homes.
Strategy HS-
8.2.3
Exercise discretion in requiring sound walls to be sure that all other measures of noise control
have been explored and that the sound wall blends with the neighborhood. Sound walls should
be designed and landscaped to fit into the environment.
Goal INF-4 Implement best practices in stormwater management to reduce demand on the stormwater
network, reduce soil erosion, and reduce pollution into reservoirs and the bay.
Strategy INF-
7.3.2
Encourage recycling and reuse of building materials during demolition and construction of City,
agency and private projects.
Strategy INF-
7.3.3
Encourage the use of recycled materials and sustainably harvested materials in City, agency and
private projects.
Strategy INF-
2.4.2
Require undergrounding of all utility lines in new developments and highly encourage
undergrounding in remodels or redevelopment of major projects.
Strategy INF-
2.5.2
Encourage private and public projects to incorporate the use of recycled water for landscaping
and other uses.
Strategy INF-
5.1.2
Require developers to pay their fair share of costs for, or in some cases construct, infrastructure
upgrades to ensure that service levels are met.
Policy RPC-
2.4
Ensure that each home is within a half-mile walk of a neighborhood park or community park
with neighborhood facilities; ensure that walking and biking routes are reasonably free of
APP-144
Section 1.0 – Project Information
Vallco Shopping District Specific Plan/ City of Cupertino
The Hills at Vallco (SCH# 2015102044) 24 Administrative Draft EIR, November 2015
Strategies/
Policies/Goals
Description
physical barriers, including streets with heavy traffic; provide pedestrian links between parks,
wherever possible; and provide adequate directional and site signage to identify public parks.
Strategy RPC-
3.1.1
Maximize the use of native plants and drought-tolerant planting.
Strategy RPC-
8.1.2
Encourage schools to meet their expansion needs without reducing the size of their sports fields.
Policy M-2.1 Adopt and maintain street design standards to optimize mobility for all transportation modes
including automobiles, walking, bicycling and transit.
Policy M-2.2 Design roadway alignments, lane widths, medians, parking and bicycle lanes, and sidewalks to
complement adjacent land uses to keep with the aesthetic vision of the Planning Area.
Improvement standards shall also consider the urban, suburban and rural environments found
within the City.
Policy M-2.3 Promote pedestrian and bicycle improvements that improve connectivity between planning areas,
neighborhoods and services, and foster a sense of community.
Policy M-2.4 Reduce traffic impacts and support alternative modes of transportation in neighborhoods and
around schools, parks and community facilities rather than constructing barriers to mobility. Do
not close streets unless there is a demonstrated safety or over-whelming through traffic problem
and there are no acceptable alternatives since street closures move the problem from one street to
another.
Policy M-2.5 Ensure all new public and private streets are publicly accessible to improve walkability and
reduce impacts on existing streets.
1.5.2 Applicant Objectives
The applicant’s primary objectives for the project are as follows:
1. Implement the vision in the City’s General Plan to redevelop the outdated Vallco Shopping
Mall into a vibrant and healthy mixed-use town center by balancing retail, employment,
residential, civic and ancillary uses with a focus on providing significant open space features,
views, and a gateway to Cupertino.
2. Revitalize this critical urban infill site with a strong and complementary mixed-use program,
including retail, office, residential, civic and ancillary uses, at an intensity and density that
both promotes visitor activity and interest and is able to financially support an innovative
open space, transit center, and civic programs, as well as achieve a high level of
sustainability.
APP-145
Section 1.0 – Project Information
Vallco Shopping District Specific Plan/ City of Cupertino
The Hills at Vallco (SCH# 2015102044) 25 Administrative Draft EIR, November 2015
The applicant’s secondary objectives are as follows:
3. Create an innovative and active gathering place with vitality in design that integrates and
encourages walking and cycling and that is compatible with, and complementary to, recent
well-designed projects proximate to the project site.
4. Capitalize on the opportunity to utilize existing infrastructure in a manner which furthers
local, regional and state compact and sustainable growth goals, including the extension of
recycled water.
5. Provide sufficient local serving and destination retail uses to enable Cupertino and South Bay
residents and shoppers to reduce vehicle miles travelled and associated greenhouse gas
emissions.
6. Create an active, inviting and comfortable place for people to visit, shop, and enjoy dining
and entertainment.
7. Provide greater residential variety and density, including additional affordable residential and
life-cycle residential.
8. Reduce distances between residential, workplaces, retail businesses, and other entertainment
amenities.
9. Improve local access to fresh and healthy foods by integrating more traditional food retail
with the vibrancy of local farmers markets, and the heightened awareness of seasonal cycles
as well as education opportunities through urban farming.
10. Provide adequate parking and vehicular access that meets the needs of future project visitors,
employees, and residents, while encouraging the use of transit, bicycle, and other alternative
modes of transportation.
11. Create new residential opportunities in close proximity to employment centers, public transit,
shops, restaurants and entertainment uses.
12. Create a new regional civic gathering place that has a strong neighborhood character that is
informed by and responding to the ideas, input and concerns of the local community.
APP-146
Section 1.0 – Project Information
Vallco Shopping District Specific Plan/ City of Cupertino
The Hills at Vallco (SCH# 2015102044) 26 Administrative Draft EIR, November 2015
1.6 USES OF THE EIR
This EIR provides decision makers in the City of Cupertino and the general public with relevant
environmental information to use in considering the proposed project in accordance with the
requirements of CEQA and the CEQA Guidelines. This EIR will be used for appropriate
discretionary approvals necessary to implement the project, as proposed. As lead agency for the
proposed project, the City of Cupertino would be responsible for most of the approvals required for
development. Other agencies may also have some authority related to the project and its approvals.
The discretionary actions, permits, and approvals that may be required by the City and other agencies
is listed in Table 1.5-1 below. This EIR is intended to be used by the City and other agencies when
deliberating on required permits and approvals.
Table 1.5-1: Summary of Required Discretionary Actions,
Permits, and Approvals
Lead Agency Discretionary Action, Permit, Approval
City of Cupertino • Specific Plan Approval
• Rezoning
• Development Agreement
• Development Permits
• Conditional Use Permit
• Tentative Map
• New and Modified Easements, Air
Rights, and other Related Agreements
• Tree Removal Permits
• Architecture and Site Approvals
• Encroachment Permits
Responsible Agencies
Cupertino Sanitary Sewer District • Improvement Plan Approval
Caltrans • Encroachment Permit
Note: The community amenities proposed as part of the project (the community
park and nature preserve, transportation improvements, educational facilities
and programs funding) are proposed to be included as part of a legally binding
and enforceable Development Agreement between the property owner and the
City.
APP-147
Section 1.0 – Project Information
Vallco Shopping District Specific Plan/ City of Cupertino
The Hills at Vallco (SCH# 2015102044) 27 Administrative Draft EIR, November 2015
1.7 SUBSEQUENT ENVIRONMENTAL REVIEW
There are uses proposed as part of the project that may require subsequent environmental review
because specific details about the construction and/or operation of those uses (e.g., new off-site 700
student elementary school) are unknown at this time. The process followed could include use of this
EIR, preparation of an Addendum to this EIR, preparation of a Negative Declaration that tiers from
this EIR, or preparation of a supplemental or subsequent EIR. The uses/actions that could require
subsequent environmental review include, but are not limited to, the following:
• Construction of a new elementary school at the former Nan Allan Elementary School site
located at 10255 North Portal Avenue in Cupertino;
• Development of more than 650,000 square feet of commercial uses, 2.0 million square feet of
office uses, 800 residential units on the site, 40,000 square feet of civic/community space,
and amenities as described in Section 1.4.2; and
• Construction of a modified or new interchange at North Wolfe Road and I-280.
APP-148
ATTACHMENT C: REFERENCED GENERAL PLAN POLICIES
Policies Description
M-1.2 Participate in the development of new multi-modal analysis methods and impact
thresholds as required by Senate Bill 743. However, until such impact thresholds are
developed, continue to optimize mobility for all modes of transportation while striving
to maintain the following intersection Levels of Service (LOS) at a.m. and p.m. peak
traffic hours:
• Major intersections: LOS D;
• Stevens Creek Boulevard and De Anza Boulevard: LOS E+;
• Stevens Creek Boulevard and Stelling Road: LOS E+
• De Anza Boulevard and Bollinger Road: LOS E+
M-1.3 Continue to plan and provide for a comprehensive system of trails and pathways
consistent with regional systems, including the Bay Trail, Stevens Creek Corridor and
Ridge Trail.
M-2.1 Adopt and maintain street design standards to optimize mobility for all transportation
modes including automobiles, walking, bicycling and transit.
M-2.2 Design roadway alignments, lane widths, medians, parking and bicycle lanes,
crosswalks and sidewalks to complement adjacent land uses in keeping with the vision
of the Planning Area. Strive to minimize adverse impacts and expand alternative
transportation options for all Planning Areas (Special Areas and Neighborhoods).
Improvement standards shall also consider the urban, suburban and rural environments
found within the city.
M-2.3 Promote pedestrian and bicycle improvements that improve connectivity between
planning areas, neighborhoods and services, and foster a sense of community.
M-2.4 Reduce traffic impacts and support alternative modes of transportation rather than
constructing barriers to mobility. Do not close streets unless there is a demonstrated
safety or over-whelming through traffic problem and there are no acceptable
alternatives since street closures move the problem from one street to another.
M-2.5 Ensure all new public and private streets are publicly accessible to improve walkability
and reduce impacts on existing streets.
M-2.6 Consider the implementation of best practices on streets to reduce speeds and make
them user-friendly for alternative modes of transportation, including pedestrians and
bicyclists.
M-3.2 Require new development and redevelopment to increase connectivity through direct
and safe pedestrian connections to public amenities, neighborhoods, shopping and
employment destinations throughout the city.
APP-149
Policies Description
M-3.3 Enhance pedestrian and bicycle crossings and pathways at key locations across
physical barriers such as creeks, highways and road barriers.
M-3.4 Preserve and enhance citywide pedestrian and bike connectivity by limiting street
widening purely for automobiles as a means of improving traffic flow.
M-3.5 Minimize the number and the width of driveway openings.
M-3.6 Require parking lots to include clearly defined paths for pedestrians to provide a safe
path to building entrances.
M-3.8 Require new development and redevelopment to provide public and private bicycle
parking.
M-4.4 Work with VTA and/or major developments to ensure all new development projects
include amenities to support public transit including bus stop shelters, space for transit
vehicles as appropriate and attractive amenities such as trash receptacles, signage,
seating and lighting.
M-4.7 Vallco Shopping District Transfer Station - Work with VTA and/or other
transportation service organizations to study and develop a transit transfer station that
incorporates a hub for alternative transportation services such as, car sharing, bike
sharing and/or other services.
M-5.1 Promote Safe Routes to Schools programs for all schools serving the city.
M-5.2 Ensure that bicycle and pedestrian safety improvements include projects to enhance
safe accessibility to schools.
M-7.1 Follow guidelines set by the VTA related to transportation impact analyses, while
conforming to State goals for multi-modal performance targets.
M-8.3 Employ Transportation Systems Management strategies to improve efficiency of the
transportation infrastructure including strategic right-of-way improvements, intelligent
transportation systems and optimization of signal timing to coordinate traffic flow.
M-8.4 Require large employers, including colleges and schools, to develop and maintain
TDM programs to reduce vehicle trips generated by their employees and students and
develop a tracking method to monitor results.
M-8.5 Encourage new commercial developments to provide shared office facilities,
cafeterias, daycare facilities, lunchrooms, showers, bicycle parking, home offices,
shuttle buses to transit facilities and other amenities that encourage the use of transit,
bicycling or walking as commute modes to work. Provide pedestrian pathways and
orient buildings to the street to encourage pedestrian activity.
M-9.2 Promote effective TDM programs for existing and new development.
APP-150
Policies Description
RPC-
1.1
Prepare a citywide Parks and Recreation Master Plan that outlines policies and
strategies to plan for the communities open space and recreational needs.
RPC-
1.2
Continue to implement a parkland acquisition and implementation program that
provides a minimum of three acres per 1,000 residents.
RPC-
2.1
The City’s parkland acquisition strategy should be based upon three broad objectives:
• Distributing parks equitably throughout the City;
• Connecting and providing access by providing paths, improved pedestrian and bike
connectivity and signage; and
• Retaining and restoring creeks and other natural open space areas.
RPC-
2.3
Strive for an equitable distribution of parks and recreational facilities throughout the
city. Park acquisition should be based on the following priority list. Accessibility to
parks should be a component of the acquisition plan.
• High Priority: Parks in neighborhoods or areas that have few or no park and
recreational areas.
• Medium Priority: Parks in neighborhoods that have other agency facilities such as
school fields and district facilities, but no City parks.
• Low Priority: Neighborhoods and areas that have park and recreational areas which
may be slightly less than the adopted City’s parkland standard.
• Private Development: Consider pocket parks in new and renovated projects to
provide opportunities for publicly-accessible park areas.
RPC-
2.4
Ensure that each home is within a half-mile walk of a neighborhood park or
community park with neighborhood facilities; ensure that walking and biking routes
are reasonably free of physical barriers, including streets with heavy traffic; provide
pedestrian links between parks, wherever possible; and provide adequate directional
and site signage to identify public parks.
RPC-
2.5
Provide parks and recreational facilities for a variety of recreational activities.
RPC-
5.1
Dedicate or acquire open space land along creeks and utility through regional
cooperation, grants and private development review.
RPC-
6.2
Enhance the city’s recreational programs through partnerships with other agencies and
non-profit organizations.
RPC-
8.1
Partner with school districts to allow community use of their sports fields and
facilities.
HS-4.1 Continue to support the Neighborhood Watch Program and other similar programs
intended to help neighborhoods prevent crime through social interaction.
APP-151
Policies Description
HS-4.2 Consider appropriate design techniques to reduce crime and vandalism when designing
public spaces and reviewing development proposals.
HS-4.3 Recognize fiscal impacts to the County Sheriff and City of Cupertino when approving
various land use mixes.
HS-3.1 Coordinate wildland fire prevention efforts with adjacent jurisdictions. Encourage the
County and the Midpeninsula Open Space District to implement measures to reduce
fire hazards, including putting into effect the fire reduction policies of the County
Public Safety Element, continuing efforts in fuel management, and considering the use
of “green” fire break uses for open space lands.
HS-3.2 Involve the Fire Department in the early design stage of all projects requiring public
review to assure Fire Department input and modifications as needed.
HS-3.3 Ensure adequate emergency access is provided for all new hillside development.
HS-3.4 Discourage the use of private residential electronic security gates that act as a barrier to
emergency personnel.
HS-3.7 Ensure that adequate fire protection is built into the design of multi-story buildings and
require on-site fire suppression materials and equipment.
HS-3.8 Encourage the water companies to extend water service into the hillside and canyon
areas and encourage cooperation between water utility companies and the Fire
Department in order to keep water systems in pace with growth and firefighting
service needs.
ES-1.1 Incorporate the principles of sustainability into Cupertino’s planning, infrastructure
and development process in order to improve the environment, reduce greenhouse gas
emissions and meet the needs of the community without compromising the needs of
future generations.
ES-2.1 Encourage the maximum feasible conservation and efficient use of electrical power
and natural gas resources for new and existing residences, businesses, industrial and
public uses.
ES-3.1 Set standards for the design and construction of energy and resource
conserving/efficient building.
ES-7.1 In public and private development, use low impact development (LID) principles to
mimic natural hydrology, minimize grading and protect or restore natural drainage
systems.
ES-7.2 Minimize stormwater runoff and erosion impacts resulting from development and use
low impact development (LID) designs to treat stormwater or recharge groundwater.
APP-152
Policies Description
ES-7.4 Review long-term plans and development projects to ensure good stewardship of
watersheds.
ES-7.5 Support the Santa Clara Valley Water District efforts to find and develop groundwater
recharge sites within Cupertino and provide public recreation where possible.
ES-7.6 Encourage the research of other water sources, including water reclamation.
ES-7.7 Encourage industrial projects, in cooperation with the Cupertino Sanitary District, to
have long-term conservation measures, including recycling equipment for
manufacturing and water supplies in the plant.
ES-7.8 Retain and restore creek beds, riparian corridors, watercourses and associated
vegetation in their natural state to protect wildlife habitat and recreation potential and
assist in groundwater percolation. Encourage land acquisition or dedication of such
areas.
ES-7.9 Continue to coordinate citywide water conservation and regional water supply problem
solving efforts with the Santa Clara Valley Water District (SCVWD), San Jose Water
Company and California Water Company.
ES-7.10 Provide public information regarding resource conservation.
ES-7.11 Promote efficient use of water throughout the City in order to meet State and regional
water use reduction targets.
INF-7.1 Coordinate with solid waste system providers to utilize the latest technology and best
practices to encourage waste reduction and meet, and even, exceed State targets.
INF-7.2 Ensure that public and private developments build new and on-site facilities and/or
retrofit existing on-site facilities to meet the City’s waste diversion requirements.
INF-7.3 Encourage public agencies and private property owners to design their operations to
meet, and even, exceed regulatory waste diversion requirements.
INF-8.1 Meet or exceed Federal, State and regional requirements for solid waste diversion
through implementation of programs.
APP-153
Appendix 6
Memorandum
re Vallco Initiative/9212 Report
by
Greensfelder Commercial Real Estate LLC
March 24, 2016
APP-154
GREENSFELDER
C OMMERCIAL R EAL E STATE LLC
D AVID S. G REENSFELDER
M ANAGING P RINCIPAL
510.708.8927 PHONE
DAVID@ GREENSFELDER.NET
D EVELOPMENT AND C ONSULTING
● C OMMERCIAL ● M IXED-USE
● L AND U SE ● E CONOMICS
● P ROJECT M ANAGEMENT
M E M O R A N D U M
TO: Elizabeth Seifel
Seifel Consulting
FROM: David Greensfelder
RE: Vallco Initiative / 9212 Report
DATE: March 24, 2016
In 2014, Greensfelder Commercial Real Estate LLC prepared a Retail Strategy Report (the
“2014 Report”) for the City of Cupertino. As part of the City’s overall growth management
system, Cupertino’s General Plan establishes a development allocation system for
commercial (retail), office, hotel room and residential growth. The 2014 Report was part of a
larger planning effort to inform the future development allocations that would be made as
part of a proposed general plan amendment process. The 2014 Report also addressed the
suitability for [re]development of the Vallco Shopping Center in depth.
Greensfelder has been asked to evaluate the potential impact of an Initiative that would
modify the General Plan by changing the allowable development allocations in the Vallco
Shopping District, where Vallco Shopping Center is located, and altering other land use
provisions in the General Plan. (Please refer to the Analysis of the Potential Impact of the
Initiative on Vallco section of this memorandum for a summary description of the
Initiative.) As part of this analysis, Greensfelder reviewed and updated key data and
findings in the 2014 Report that are particularly relevant to the Vallco Shopping Center and
the analysis of the Initiative.
This memorandum serves as a technical appendix to the Election Code 9212 Analysis of the
Initiative and is organized into the following sections:
I. Executive Summary
II. Organizing Principles for Discussing Retail and Shopping Centers
III. Regional Mall and Department Store Trends
IV. Vallco-specific Findings
V. Analysis of the Potential Impact of the Initiative on Vallco
APP-155
GREENSFELDER
C OMMERCIAL R EAL E STATE LLC
D EVELOPMENT AND C ONSULTING
March 24, 2016
Page 2
VI. Conclusions
Attachment A – Historic and Current Retail Conditions in Cupertino and Surrounding
Areas
Attachment B – Summary of Competing Specialty Shopping Destinations
Attachment C – Bibliography and Reference Sources
Executive Summary
This executive summary presents the major findings discussed in this memorandum and begins
with an overview of key retail trends affecting both retail and shopping malls like Vallco:
Ø Mall retailers who do a better job of differentiating themselves from competitors are
consolidating into fewer, high performing Class A regional malls, and an increasingly wide
divide is developing between higher performing Class A malls and lower performing
Class C malls of which Vallco is an excellent example.
§ Today’s successful malls are predominantly comprised of “specialty” retailers that
need to draw customers from a broad retail trade area.
§ Vallco operates in a retail trade area where there is an oversupply of mall space.
§ Mall leasing and operation is a highly competitive business.
§ The accelerating rate at which Class A malls are differentiating themselves from
Class B and C malls is definitive evidence that Vallco’s circumstance is not unique.
§ Department stores and big box retailers have consolidated within their respective
categories.
§ Many retailers have experienced financial and operational challenges including
Macy’s, Sears and JC Penney, all of which were anchors at Vallco before their
closure.
Ø Technology has changed shopping, particularly for commodity goods. Multiple retail
“channels” now compete against traditional “bricks and mortar” retail.
§ An increasing number of retailers sell through multiple retail channels and try to
create an “omnichannel” experience for the consumer.
§ This trend has resulted in the closure of some “bricks and mortar” retailers, while it
has also provided some more nimble and responsive retailers with new
opportunities to reach consumers.
§ These trends have particularly forced commodity retailers to operate in an ever-
changing environment. This competitive environment combined with continued
consolidation amongst commodity retailers means there will be fewer tenants
available to fill space should Vallco be reimaged as a so-called power center.
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D EVELOPMENT AND C ONSULTING
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Page 3
Ø Retail must constantly reinvent itself to stay “fresh” and relevant to customers.
§ Mall operators and retailers alike must build rapport and excitement with their
customers in order to create “want-based” as opposed to “need-based” specialty
shopping experiences, and to retain a competitive edge.
§ Consumers are increasingly looking for well-designed and authentic destination
retail environments where they not only can spend their free and recreational time,
but where they can have a compelling “experience” while doing so.
§ The addition of residential and office space in a redeveloped Vallco provides greater
opportunities to create a dynamic environment, and greater critical mass to support
an active retail component.
§ An owner or developer with both expertise and deep financial capability is needed
to execute a repositioning strategy at Vallco.
Specifically, current retail trends point to Valley Fair, Santana Row and Stanford Shopping Center
continuing to dominate the retail market because all evidence points to the market having
determined there is no need for another regional mall serving the Cupertino trade area.
The memorandum evaluates four potential development scenarios that could occur under the
Adopted General Plan or the General Plan with Initiative. Each of these scenarios is evaluated
based on the types of retail that might be supportable and attracted to Cupertino, the potential
improvements that would be needed along with a high level estimate of required investment to
accomplish anticipated development and its likelihood of success along with other considerations.
The potential success of each of the listed scenarios is largely dependent on the market forces
described in this memo.
Generally, the scenarios allowing Vallco to be redeveloped under the City’s Adopted General Plan
are the most likely scenarios, although the amount of successful retail is expected to be
significantly less than presently exists at Vallco. The scenarios requiring Vallco to operate in its
present format are generally not feasible. The specific findings for each scenario are presented
below and additional findings are included in the Conclusion section of this memo. The summary
conclusion from the evaluation of each scenario is shown below in italics:
¥ Adopted General Plan, which assumes full buildout of land uses throughout the City as
allowed under the 2040 General Plan, including redevelopment of Vallco site.
A mixed-use project with a smaller retail component has a much higher likelihood of success than
preserving the existing Vallco mall in its present configuration.
¥ Adopted General Plan With Sand Hill Proposal, which is consistent with the first scenario
with additional specificity based on what Sand Hill proposed in 2015.
Allowing for a mix of land uses on the Vallco site has the greatest likelihood of success. The Sand
Hill Proposal that includes 800 residential units and 2,000,000 square feet of office space has the
potential to create a dynamic environment.
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C OMMERCIAL R EAL E STATE LLC
D EVELOPMENT AND C ONSULTING
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Page 4
¥ General Plan With Initiative Assuming Vallco as Enhanced Mall, which assumes the mall
can be preserved and rehabilitated to become a viable mall.
This scenario is not a feasible option from either a market or development perspective: Trying to
preserve Vallco as it was decades ago will not attract new tenants or customers, especially customers
who are drawn to vibrant, pedestrian-oriented retail environments. Rather, something substantively
new and differentiated from competing projects must be created at Vallco in order to draw customer
traffic. Without significant investment in redevelopment, Vallco is more likely to deteriorate as
opposed to improve beyond its present 2016 level of occupancy (314,000 SF retail occupied).
¥ General Plan With Initiative Assuming Vallco With 2016 Occupancy, which assumes all
three anchors remain closed and only a limited number of businesses remain occupied
consistent with current conditions.
Vallco in its present configuration is unlikely to generate the incremental income required to justify
investment in a significant renovation. The most likely outcome with the Initiative is that Vallco will
remain in its current state, or it will continue to decline and face closure like many similar Class C
malls across the United States.
Organizing Principles for Discussing Retail and Shopping Centers
A Brief History of Retail
By way of background, a brief history of how retail has evolved over the past century will provide
context for this Report and its findings. In the early 20th century, cars were a rarity. Most towns and
cities had downtown districts that served as the community’s commercial hub and were
characterized by a massing of retail that evolved to serve the community’s needs. Towns often had
their own homegrown department stores that sold a wide variety of goods. The best known
examples of these include Emporium and May Co. on the West Coast, Dayton’s and Marshall Field
in the Midwest, and Filene’s and Macy’s in the Northeast. These were department stores in the
truest sense, having separate departments under one roof for a variety of goods including clothing
and shoes, electronics, housewares, books and records, pets, home goods, and the like.
When retail was clustered in a downtown or town square environment, there was not a need for
today’s ubiquitous suburban shopping center. In contrast, by the 1950’s, the automobile became
commonplace, and started a trend towards suburbanization. The need for shopping centers was
born. Over a period of time, these malls replaced downtown shopping districts in the increasingly
decentralized urban landscape.
As the advent of shopping malls began to erode the downtown shopping district’s market share,
discounters began to erode the traditional department store’s market share. Walmart and Kmart
started nationwide expansions. Even traditional department store companies began to enter this
world, perhaps the most notable example being Dayton-Hudson’s Target division. At the same
time, the suburban regional mall would often be anchored by department store chains that
expanded their market share by focusing on suburbs.
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C OMMERCIAL R EAL E STATE LLC
D EVELOPMENT AND C ONSULTING
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The next step in the evolution away from traditional department stores was the advent of retailers
that became more efficient by specializing in a particular “department.” Clustered together in what
have come to be known as power centers, these “big box” and “category killer” stores were more
convenient, focused narrowly on one category, but offered a wide variety of merchandise within
that category, developed supply and distribution advantages extending from their narrower focus,
and offered everyday low prices. They also started “killing off” the departments in the department
stores. In-turn, department stores increased their focus on soft goods, thereby limiting the overall
variety of merchandise and giving the consumer fewer reasons to visit.
Like with many businesses, department store chains began to consolidate in order to increase scale,
decrease expenses, and maintain competitiveness … or simply to avoid going out of business
altogether. By extension, the number and variety of regional mall anchor tenants contracted, and
by the 1990’s the contraction and consolidation trend of regional malls was in full swing. In some
instances, even traditional department stores (Kohl’s being one example) began to abandon malls
and join the category killers in power centers. With fewer anchors, so-called “category killer”
tenants finding each other in power centers, and the advent of the outer suburbs, fewer and fewer
truly successful regional malls and even fewer downtown shopping districts remained.
Some department stores including Macy’s, Sears, and JC Penney have evolved away from their all-
things-under-one-roof model to more closely resemble commodity retailers. In other words, their
product offerings are less distinguishable from what could be purchased in a variety of other
places and through a variety of retail channels. Furthermore, with the exception of chains such as
Nordstrom, Bloomingdale’s, Neiman Marcus and the like, department stores have ceased to
distinguish themselves for their service and environment.
With respect to so-called lifestyle and hybrid commodity-specialty projects, ULI’s Professional Real
Estate Development manual states: “Early lifestyle centers successfully combined desirable retail
shops with appealing architecture and a variety of outdoor settings spawning the lifestyle center.
….These early centers were, in part driven by a trend in which small specialty retailers faced a
shortage of high quality specialty retail space at the same moment that regional mall failures were
accelerating. The dominant new commodity retail and shopping center formats had, in fact, left
small store specialty retailers with few reliable anchors, and developers with no clearly defined
shopping center template to replicate, spawning the ill-defined and somewhat chaotic lifestyle
center concept.”1
With the homogenization of department stores has come the demise of many regional malls, and
the change in relative competitive positioning and performance of those that remain, which are
now commonly classified as either Class “A,” “B,” and “C” malls. For purposes of this memo, we
will use the following definitions, assembled from industry sources National Real Estate Investor
and realtymogul.com:
1 ULI - Professional Real Estate Development The ULI Guide to the Business, 2012, By Richard Peiser, David
Hamilton
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A “Class A” mall is the dominant property in a major metropolitan market and the best
performer in its retail trade area. (Malls typically draw from a retail trade area of up to 7 to
15 miles – in certain circumstances further - depending on the population density around
it.) Often, Class A malls are newer or recently renovated properties, have the best locations,
and are anchored by top anchor tenants. They contain top amenities, are professionally
managed and demand the highest rent with little or no deferred maintenance issues. Their
tenants have high sales per square foot (generally at least $400 per square foot), and they
have low vacancy rates. A Class A mall will command the greatest investor interest,
typically from institutional investors, owners, and operators.
A “Class B” mall is a non-dominant competitor in its retail trade area. A step down from
Class A, these properties are generally older than Class A, tend to have lower retail sales
per square foot (less than $400 per square foot), and may or may not be professionally
managed. Rental income is typically lower than Class A. Although often well maintained,
this type of mall typically has some deferred maintenance issues as the result of lower
rental income, and likely is not up to current interior design standards. Many investors see
this as a “value-add” investment opportunity (i.e. less expensive than a class “A” property)
because through renovation and common area improvements, the property can be
upgraded to Class A or Class B+.
A “Class C” mall is the weakest player and struggles to capture sales from its retail trade
area due to competition from competing retail projects. A Class C mall typically has sales of
less than $250 per square foot and is usually hobbled by a significant competitive
disadvantage, such as inferior location, outdated physical layout, vacant anchor space, etc.
These properties generally have the lowest rental rates in the retail trade area and need
significant renovation including updating the building infrastructure and repositioning to
get to steady cash flows for investors. Vallco is considered a Class C mall given its poor
performance, challenging physical layout and poor historical retail performance.2
The San Francisco Bay Area has several high performing malls, including Valley Fair in San Jose
and Stanford Shopping Center in Palo Alto, both of which are good examples of Class A malls on
the Peninsula and in the South Bay. However, there are far more Class C malls like Vallco that
have been unable to compete effectively. For example, nearby Westgate Shopping Center in
San Jose was a Class C mall that was repositioned into a power center, and both San Antonio
Center in Mountain View and Sunnyvale Town Center are Class C malls that are presently being
repositioned. In the middle are Class B malls like Eastridge in San Jose and Stoneridge in
Pleasanton. As retail has evolved to today’s commodity versus specialty norm, some Class B and C
malls will be revitalized or redeveloped while others will be repurposed into different projects
altogether given the highly competitive retail environment within which malls currently operate.
2 “Look Out Below,” National Real Estate Investor, Kenneth Rogers, August 1, 2003.
http://nreionline.com/retail/look-out-below
“ What is Class A, Class B, or Class C property?”, Jul 24, 2013, https://www.realtymogul.com/blog/what-
is-class-a-class-b-or-class-c-property
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Description of Commodity and Specialty Retail Classifications
As downtown shopping districts and regional malls declined, and big box, category killer retailers
proliferated, and today’s “commodity” versus “specialty” retail paradigm was born. This
paradigm has transformed the retail landscape and is another key reason that Class C malls like
Vallco have a tough time competing effectively.3 This commodity versus specialty retail
categorization was also described in the 2014 Report and is summarized below to explain how
retail is currently organized, along with several other retail distinctions of relevance to this
analysis.4
At its essence, today’s shopping environment is about convenience and price versus experience.
Commodity retail goods and services are those goods and services that are purchased and
consumed on a regular basis from "primary" household funds, largely without emotional
attachment by the consumer, and at retailers and retail shopping centers offering the consumer the
combination of low price and convenience most suited to the consumer’s needs at a particular
moment. Examples of commodity retailers include local convenience stores, drug stores, grocery
stores, discounters and warehouse stores. A "commodity shopping center" is the aggregation of a
number of commodity retailers in one location, allowing for convenient cross-shopping.
3 ULI - Professional Real Estate Development The ULI Guide to the Business, 2012, By Richard Peiser, David
Hamilton
4 Retail professionals use many terms to differentiate retail shopping choices and retailers, including terms
such as “comparison goods,” “convenience goods,” “big-box,” or “category killers,” which refer to specific
shopping preferences and the types of retail that align with them. The term “comparison goods” has
traditionally been used to describe retail items that consumers do not purchase on a frequent basis (i.e. daily
or weekly), and that are more likely to cause consumers to compare price, quality, and features than
everyday items. Comparison goods might be either commodity goods or specialty goods. By contrast, a
“convenience good” is something more likely purchased on a regular basis and is more likely a commodity
as opposed to a specialty item. Good examples of convenience goods are those things that are regularly
purchased at a grocery or a drug store. By definition, “convenience” or “comparison” goods could fit in
either the commodity or specialty definitions described here. Shoppers are often willing to travel a greater
distance to purchase comparison goods.
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While habits may be developed over time (e.g. shopping at the same grocery store), consumers
tend to view these retailers as interchangeable and do not to have a strong connection to a
commodity retailer’s brand or to a commodity shopping venue. For the most part, internet
shopping is an option most consistent with purchasing commodity goods and services (see more in
the discussion of omnichannel retail below).
Specialty retail goods and services, by contrast, are those goods and services that are purchased on
an optional basis by consumers using "discretionary funds” (i.e. funds not designated for basics
like rent, food, and transportation), and selected and often consumed during “free” or
“discretionary” time (i.e. when not working or tending to daily responsibilities). Successful
specialty shopping venues deliver a unique and attractive combination of tenant mix and
environment (i.e. a sense of place), often reflecting the character of consumers in the market or
trade area in which they operate. Equally as important, these specialty-shopping areas lend
themselves to extended consumer stays. An emotional "feeling" or “pleasure” derived from the
overall shopping "experience” is an important part of the consumer’s point of reference. Successful
specialty shopping venues, regardless of format, deliver a unique combination of
"product" (i.e. shops) and “place” (i.e. physical and conceptual environment), unique and attractive
to the consumer within the market or trade area in question.
Shopping malls typically contain a curated mix of retailers with far more specialty than
commodity retailers in a “destination retail” environment that brings together “anchor”
department stores, complementary smaller retailers, eating establishments and entertainment in a
compelling and appealing environment. Well designed and tenanted shopping malls and lifestyle
centers are retail venues that draw consumers from longer travel distances than projects devoted
primarily to commodity retailers, and customers typically visit these projects for several hours.
Omnichannel Retail
Retail is now conducted through many channels (e.g. traditional stores, catalogs, on-line, via
mobile devices, television, etc.), a phenomenon often referred to as multi-channel retail.
Omnichannel retail refers to a consistent and seamless consumer experience across multiple retail
channels. This significant shift in how we shop has had a dramatic impact on the competitive retail
environment for both shopping malls and department stores.
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Omnichannel consumers frequently use more than one channel simultaneously. For example, a
consumer might do research using a price check “app” or look up product reviews on the internet
while looking at a product in a traditional retail store, sometimes referred to as “showrooming.”
Likewise, omnichannel retailers will track customers across the various channels they utilize
(catalog and on-line shopping, or on-line and mobile shopping for example), and employ social
media to increase sales opportunities and more precisely target marketing campaigns to
consumers most likely to buy a particular product.
Omnichannel strategies work differently for commodity as opposed to specialty retailers. For
example, multiple retail channels might be used by a consumer to research and assist in
purchasing a particular commodity like a television, or to push out or target a promotion.
By contrast, a specialty retailer might use onnichannel strategies to drive customer traffic to a
“bricks-and-mortar” store, restaurant, or shopping district. Applicable to both commodity and
specialty retailers, the availability and use of multiple retail channels allow consumers to be better
informed. A byproduct of a well-educated consumer is that retailers and their salespeople must
know much more about their products and competitors in order to serve their customers.
A November, 2012 “Shopping Centers Today” article notes the significant changes that have
occurred with retail distribution channels. Previously, these channels operated separately (i.e.
something ordered from a catalog or online would be delivered to a customer’s house), but they
are now merging so that real estate is part of the picture (i.e. something ordered may be picked up
the same or the next day at a local outlet).
Regional Mall and Department Store Trends
All of the retail trends described above are directly impacting Vallco and will continue to exert
themselves on the mall business throughout the United States. In summary, three key trends are of
significant importance to understanding how the Initiative may affect Vallco:
1. Class A malls continue to flourish while Class B and C malls are languishing at an
accelerating rate throughout the United States.
2. Consolidation amongst retailers, most notably department stores, continues, resulting in
more instability among the retail tenant base for malls.
3. Consumers are increasingly looking for well-designed and authentic destination retail
environments where they can not only spend their free and recreational time, but where
they can “experience” something unique and appealing on an emotional level.
New York Times reporter Nelson Schwartz has reported on the current economic challenges that
malls face across the nation, referencing research performed by Green Street Advisors that
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documents recent closures of ten malls, with sixty more on the brink of doing so.5 He points out
that these challenges will likely continue: “With income inequality continuing to widen, high-end
malls are thriving, even as solid retail chains like Sears, Kmart and J. C. Penney falter, taking the
middle- and working-class malls they anchored with them.”
The trend is exemplified by the declining occupancy rates at shopping malls nationwide:
80 percent of malls have a vacancy rate of 10 percent or less today as compared with 94 percent just
ten years earlier. One could fairly speculate that Class B and C malls are experiencing the highest
vacancy rates as compared to Class A malls. He goes on to say that “nearly 15 percent of malls are
10 to 40 percent vacant, up from 5 percent in 2006. And 3.4 percent — representing more than
30 million square feet — are more than 40 percent empty, a threshold that signals the beginning of
what Green Street calls “the death spiral.” This is precisely the trend that has led to Vallco’s
demise.
The closure of the three department stores at Vallco can be seen in the broader context of
department store closures nationwide: Macy’s is closing 36 department stores in 2016 in addition
to the 14 stores closed in 2015, and JC Penney’s announced the closure of 7 department stores in
2016 in addition to the 40 closed in 2015.6
Schwartz also integrates the impact of consolidation among retailers. He says: “Instead, the
fundamental problem for malls is a glut of stores in many parts of the country, the result of a long
boom in building retail space of all kind.” He quotes Christopher Zahas, a real estate economist
and urban planner in Portland, Oregon: “We are extremely over-retailed. Filling a million square
feet is a tall order.” Schwartz correctly points out that while online shopping gets lots of attention,
it accounts for only 10 percent of retail sales, however, those 10 percent of sales disproportionately
impact commodity retailers.
A November 2014 McKinsey research paper titled “The Future of the Shopping Mall,” author
Roberto Fantoni says: “…the mall as it’s been conceived for the last half century is at a critical
inflection point. A storm of global trends are coming together at the same time to cause malls to
change the role they play in people’s lives. No longer are they primarily about shopping. Now,
when consumers visit malls, they are looking for experiences that go well beyond traditional
shopping.” He cites increasing urbanization, more people living in a smaller area, and increasing
interest in mixed-use projects as a response to sustainability concerns as primary catalysts for this
trend. This author also agrees with Fantoni’s assertion that “…maintain[ing] a strong association
between consumption and pleasure is driving the need for more engaging shopping experiences”
and that “the rise of digital technologies are fundamentally reshaping consumer expectations and
5 “The Economics (and Nostalgia) of Dead Malls” (New York Times, January 3, 2015),
6 http://www.usatoday.com/story/money/2016/01/06/macys-announces-layoffs-restructuring-after-
disappointing-2015/78373358/
http://www.businessinsider.com/list-of-sears-and-kmart-stores-closing-2016-2
https://consumerist.com/2016/01/13/jcpenney-closing-7-stores-by-mid-april/
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shifting the function of stores toward useful and entertaining customer experiences.”
The McKinsey study identifies three trends in mall investment:
1. A trend away from commodity towards specialty environments where there is a
“broadened value proposition for consumers…that attempt to recast the mall as a new
downtown, including concerts, arts centers, spas, fitness clubs, and farmers markets…a
place to spend quality time with friends and family.”
2. An increasing use of technology that expands the consumer’s experience to include both
before and after a visit to a mall. These efforts might include anything from marketing to
using technology to “decrease customer pain points” like finding parking.
3. A willingness to explore new formats for malls including open air malls, mixed-use
projects, and a more open, natural design for enclosed spaces. The paper cites non-store
space of 30-40 percent or even 50 percent of total space in a project.
The bottom line is that capital must receive a compelling return in order to be attracted. Fantoni
states: “Mixed used developments offer consumers an attractive, integrated community in which
to live, work and shop. They also serve to generate additional traffic for the malls while
maximizing returns on invested capital.” Projects must “define a clear value proposition for both
consumers and retailers,” increase efficiency of an existing project, and focus on areas with clear
potential for growth. In sum, “To avoid becoming what one chief executive calls a “historical
anachronism – a sixty-year aberration that no longer meets the public’s needs,” mall operators
must expand their horizons of what a mall can be.”
In an editorial written for Shopping Centers Today, Yaromir Steiner, a well-respected shopping
center designer, states that “…understanding the dynamics surrounding Class B and C malls
requires an appreciation for the key differences between need-based and want-based retail
environments. Need-based environments provide essential goods, promise value and general
serve local trade areas. Want-based environments are very different. Designed and built to service
large regional trade areas, want-based assets include primarily experiential and aspirational retail
tenants.” Steiner points out that some formerly high sales per square foot malls have evolved into
Class B and Class C malls with little upside as “want-based competition or unfavorable
development patterns forced a regional location to a more sub-regional profile” and better
positioned and curated malls have drawn shoppers away.
The 2014 Report also identified a number of trends that help explain Vallco’s underperformance:
¥ Echoing Schwartz, the excess supply of retail space has shifted retail dollars to new centers
without creating additional demand, leading to the decline of older centers. As long ago as
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2002, it was reported that of the more than 2000 enclosed malls in the U.S., approximately 15 to
20 percent of all malls were headed for closure. 7
¥ Regional shopping centers with uncertain and shifting identities lacked the ability to appeal to
increasingly value-conscious consumers who had alternative channels such as factory outlet
stores, catalogs, internet sales, and big-box stores. In addition, a “do-it-yourself” mentality
drove customers from traditional retailers to warehouse stores.
¥ By creatively rethinking public space and urbanism, decaying malls are able to be transformed
into “genuine places in the older areas of our spreading suburban environment” resulting in
broader appeal to today’s consumers.
These observations support the theory that today’s retail landscape is a dichotomy of price and
convenience-oriented commodity retailers, and specialty retailers congregated in appealing
environments. Not coincidentally, shoppers are choosing alternatives to enclosed regional malls in
part because those malls lack an identifiable sense of place.
¥ Retail alternatives, or specialty projects where consumers enjoy spending their discretionary
time and income, have become a major focus. Formats that add entertainment and cultural
uses, or unconventional uses such as mixed-use centers, educational facilities, medical clinics,
or a variety of other uses are increasingly common and sought after. Fitzgerald and Leigh
agree that downtown shopping may be poised for a recovery, noting “shoppers who used to
buy in malls are now more willing to shop on ‘Main Streets.’”
In October 2012, Co-Star published a series of three articles on demalling America. As has already
been noted, the articles point out that as anchor tenants merge and contract, dominant regional
malls are faring better than secondary malls and do a better job attracting tenants. This trend is
particularly important in light of many retailers trending towards smaller stores, exacerbating
vacancy rates in weaker projects, and providing opportunities to augment tenant mix in stronger
ones. A dominant mall’s success in a retail trade area is often at the expense of outmoded centers
such as Vallco. The article asserts that 10 percent of the approximately 1,000 regional malls in the
8 J. Thomas Black, Libby Howland, and Stuart L. Rogel, Downtown Retail Development: Conditions
for Success and Project Profiles (Washington, D.C.: The Urban Land Institute, 1983).
Kevin Mattson, “Antidotes to Sprawl,” in Sprawl and Public Space: Redressing the Mall, ed. David J.
Smiley (Washington, D.C.: National Endowment for the Arts; New York, N.Y.: Distributed by
Princeton Architectural Press, 2002).
Nora Ganim Barnes, “The Restructuring of the Retail Business in the US: The Fall of the Shopping
Mall,” Business Forum 27, no. 1 (Winter 2005).
Mark Robbins, “Redressing the Mall,” in Sprawl and Public Space: Redressing the Mall, ed. David J.
Smiley (Washington, D.C.: National Endowment for the Arts; New York, N.Y.: Distributed by
Princeton Architectural Press, 2002).
Joan Fitzgerald and Nancey Green Leigh, Economic Revitalization: Cases and Strategies for City and
Suburb (Thousand Oaks, CA: Sage Publications, 2002).
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US will fail by 2022 and repeats the quip: “Shopping centers aren’t overbuilt, they’re merely under-
demolished.”
Malls are typically well located, and are designed for a shorter lifespan than other types of real
estate such as housing and office. (Retail is routinely remodeled, as customers are attracted to
“new and shiny.”) Malls need to provide a dynamic mix of shopping, dining and entertainment
experiences in a “want-based” environment. With this consumer desire in mind, many malls as
well as new retail projects are being redesigned as town squares or open-air pedestrian “streets.”
Malls and stores that are not refreshed on a regular basis tend to perform far worse than those with
significant upgrades and reinvestment. Distressed malls often reflect the challenges associated
with low rents and occupancies, as they cannot generate sufficient income to support the
significant reinvestment and financing costs associated with a major renovation. While painful on
a case-by-case basis, the culling of weaker properties from the market is a healthy process.
CoStar states that a fundamental decision needs to be made about whether to reposition a mall or
to demolish and start over. Regardless, a major repositioning represents key opportunities for
visionary planning, political leadership, and the owner. There are positive externalities such as a
well-executed project helping lure desired employers and their highly desirable workers that
should be considered as well. Execution is difficult: In order to obtain financing, tenants need to be
lined up in advance, and the authors point out that successful mall repositioning involves a
combination of deleveraging, demalling, and deep pockets. These observations were echoed by
several stakeholders whose interviews are summarized in the 2014 Report.
The accelerating differential between the best and marginal malls clearly demonstrates that Vallco
is not a unique circumstance. Vallco has suffered because of directly competitive Class A malls in
superior locations, namely Stanford Shopping Center and Valley Fair. These malls have best-in-
class anchor department store tenants, an up to date selection of in-line shops (as differentiated
from Vallco whose shop tenants are virtually nonexistent), and a much more pleasant, pedestrian-
oriented physical environment in contrast to Vallco’s poorly laid out mall core and parking, and
lack of a direct and pleasant pedestrian connection across Wolfe Road.
In addition to Valley Fair and Stanford Shopping Center having continued to upgrade their
common areas and amenities so they are appealing places for consumers to shop and “experience”
their free time, Santana Row8 has introduced an open-air, “Main Street” environment in Vallco’s
primary trade area. All three of these projects have created a high standard for “want-based”
shopping environments. (An update to the 2014 Report’s description of Valley Fair, Santana Row,
and Stanford Shopping Center is included in Attachment “B” to this memo.)
8 Although it does not have the characteristics of a traditional shopping mall, Santana Row competes with
surrounding shopping malls (as it would with Vallco), as it offers a unique mix of retail, restaurant and
entertainment in a well-curated pedestrian oriented environment.
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Vallco suffers from all of the circumstances, both within and beyond its control, that conspire to
relegate once vibrant malls like Vallco to Class C status. It also must be emphasized that Vallco is
not unique; many malls across the United States and within the San Francisco Bay Area have
experienced exactly the same phenomenon, as documented above.
Vallco-specific Findings
The 2014 Report contained a significant amount of research and analysis of Vallco that is
summarized below and updated (in italics) to reflect current observations of particular relevance to
the analysis of the Initiative. The mall was originally constructed between 1974 and 1979. Increased
competition soon came from other regional malls such as Stanford Shopping Center, and in
particular Valley Fair, which opened in 1986. These direct competitors began to take market share
from Vallco.
The market and ownership challenges faced by Vallco cannot be understated. While Vallco was a high
performing destination when it opened, it quickly faced a formidable challenge from Valley Fair, which is
located in close proximity and at a high traffic intersection of two major freeways. In addition, Vallco is
located in Stanford Shopping Center’s trade area.
Vallco’s circumstances are not unique as there is an oversupply of mall space in the United States.
Key to the repositioning process is creating a brand that sets Vallco apart from competing projects
and communicating that brand to the community and prospective tenants alike.
As documented earlier, Vallco was anchored by faltering department stores that did not allow Vallco to
differentiate itself from its competitors. Combined with other leasing challenges, including numerous
ownership changes as the result of its poor economic performance, Vallco’s ability to compete effectively in
the competitive regional mall industry was reduced. This led to Vallco having no compelling qualities with
which to distinguish itself from other retail offerings serving Cupertino and surrounding communities.
Specifically, Cupertino residents have ready access to Valley Fair, Santana Row, and Stanford Shopping
Center, all Class A projects. For this reason, the consolidation among tenants (especially anchors), and
Vallco’s various owners not investing in upgrading facilities and retaining key tenants, Vallco has sunk to
Class C status.
An owner or developer with the expertise and financial capability to execute a repositioning
strategy is required for a successful outcome. The City’s ability to contribute financially and/or to
use its governmental powers to facilitate redevelopment will have a material impact on the success
and timing of any redevelopment.
Vallco’s various owners have been either unable or unwilling to make the financial investment required to
renovate Vallco so that it could have a physical plant capable of competing with Valley Fair and Stanford
Shopping Center. Neither have they made the financial investments needed to “buy” key tenants to
jumpstart leasing efforts, a reflection in part of Vallco’s long-term poor economic performance and frequent
ownership changes during a period in which repositioning efforts may have had more potential than in
today’s environment.
Thereafter, while its competitors renovated, expanded, and re-tenanted to meet market demands,
Vallco languished with incomplete development, defaults from prior ownerships, prolonged and
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unrealized redevelopment plans, management changes, and other setbacks. One widely and
commonly-cited reason for Vallco’s decline was a mismatch between Vallco’s mid-range stores and
Cupertino and the surrounding area’s growing affluence and changing ethnic makeup.
Vallco’s anchor tenants: Sears, JC Penney, and Macy’s (previously Emporium that was acquired by Macy’s)
are precisely the sorts of retailers that did not fare well as regional malls differentiated themselves from their
competitors. Valley Fair’s anchor tenants (Macy’s, Nordstrom, and planned Bloomingdales) only serve to
accentuate Valley Fair’s superior retail positioning.
Regional mall operation, leasing and management is a competitive business: Vallco was unable to
compete with the much larger and more sophisticated operators of Stanford and Valley Fair. As a
direct result, the mall is largely vacant, save for AMC Theater, The Bay Club, the skating rink,
bowling center, a few restaurants, and small tenants.
Westfield (Valley Fair) and Simon (Stanford) both own multiple properties. Space at both Valley Fair and
Stanford is at a premium, and the demand for space allows Westfield and Simon to do package deals with
tenants with specific leasing conditions that could put Vallco at a competitive disadvantage. For example,
some leases may require tenants to exclusively occupy high-demand malls, dictate a specific location within
those malls or place “radius restrictions” that prohibit tenants from opening stores at competing properties
within a certain number of miles of their store. Vallco has no doubt had trouble leasing to various tenants in
this competitive environment.
The lack of clothing and apparel-related stores is due in part to the lack of fashion-driven,
destination retail centers in Cupertino. Vallco suffered from competition with Valley Fair and
other projects, leading to high vacancy and shoppers on apparel-driven trips turning to
destinations outside Cupertino.
Cupertino currently lacks specialty retail, and fashion, in particular. With the department stores at Vallco
now being closed, and new offerings at competing Valley Fair, Santana Row, and Stanford Shopping
Centers, this dearth of fashion has gotten worse.
Several adjacent projects are planned or under construction. The adjacent Rose Bowl project is
under construction, and the owner expects to receive competitive rents for the 60,000 square feet of
retail space. Main Street is entitled and being marketed for lease, but grading has only just begun.
The Apple Campus 2 is approved, with construction expected to start soon.
These projects are presently either complete or under construction, and the opportunities or competition they
represent, as the case may be, will inform how Vallco is ultimately designed so as to be most successful.
Governing documents control what can be changed on the property, including parking, building
requirements, and certain uses. Ground leases and various tenant leases have provisions further
restricting changes and certain uses.
With the three department stores and the mall itself now under a single ownership, the restrictions contained
in Vallco’s governing documents are not as significant as before, but some remaining tenants still have
certain control rights in their leases. Certain approvals needed to redevelop the property will need to be
negotiated. Details of these leases follows:
¥ AMC Theaters: AMC executed a lease on 5/5/05 for 15 years with three 5-year options and
one 4½-year option. The lease includes the following provisions:
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o A protected area requiring AMC’s approval for changes of any parking areas west of
Wolfe Road including the then newly built parking deck, and all pedestrian access to
and from the parking areas, but allowing the landlord rights to certain future building
areas (lease § 26).
o A requirement that the landlord continuously operate the property as a shopping
center.
o Restrictions on the sale of movie concession food or beverage within 50 feet of AMC’s
premises, in common areas, or in parking areas, on so-called noxious uses typically
restricted in shopping center governing documents (but allowing Lucky Strike bowling
alley), and on a health club.
o Co-tenancy requirements (and rent concessions for failure for them to be met).
¥ Lucky Strike: The bowling alley executed a lease on 12/11/06 for 38,000 square feet of
space for a term of 15 years from 1/1/07 to 12/31/22 with three 5-year options to renew.
¥ The Bay Club: The Bay Club’s lease dated 3/15/11 has a term of 15-years 4-months plus
options to renew for three 5-year periods. The lease establishes part of the common areas as
protected areas requiring Bay Club’s approval for modifications, and an exclusive for a
health club on Sears’ lands.
¥ Sprint: Sprint has two leases for cell towers, each commencing in 2002 with a 15-year initial
term plus two 5-year options to renew.
Analysis of the Potential Impact of the Initiative on Vallco
This memorandum analyzes the potential impact of the Initiative on Vallco by comparing what
would be allowed under the City’s currently adopted General Plan with what could occur if the
Initiative were to be approved by Cupertino’s voters. It begins with a brief description of the
Initiative and then analyzes potential development scenarios with and without the Initiative.
The Initiative would modify the General Plan and would affect future development at the Vallco
Shopping District and in other areas of Cupertino in the following ways.
Ø At the Vallco Shopping District, the Initiative would limit uses to retail, entertainment, and
hotel, prohibiting any new residential or office development.
§ While none of the units allocated to Vallco (389 units) would be allowed to be built, about
60 percent (243 units) would be reallocated to other residential areas in Cupertino.
§ In contrast, the 2,000,000 square feet of office space presently allowed at Vallco would be
eliminated from the General Plan altogether, which would significantly reduce potential
new office development in Cupertino.
§ The Initiative would also reduce height limits for any new development on the site to a
maximum of 45 feet, below the height of some of the existing buildings at Vallco.
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Ø In other areas of Cupertino, the Initiative would generally modify the General Plan to:
§ Set maximum building heights for Neighborhoods at 45 feet, which increases the maximum
General Plan height for these areas;
§ Set maximum building heights for Special Areas as identified in the current General Plan.
§ Add new policies regarding development setbacks, “step-backs,” “building planes,” and
rooftop height extensions citywide.
§ Limit the maximum lot coverage for projects over 50,000 square feet.
§ Reduce the number of new residences allowed by 146 units.
§ Add specific land use policies applicable to North De Anza Boulevard, Stevens Creek
Boulevard, and Homestead Road in North Vallco Park.
Ø Voter approval would be required for any further changes to the development allocations for
Vallco and to the other policies and provisions enacted by the Initiative.
Ø Voter approval would not be required for the City Council to make changes to the
development allocations for other areas of the City, or for any General Plan provisions not
enacted or amended by the Initiative.
This memorandum evaluates what could occur at Vallco under the following potential
development scenarios, as further described in the 9212 Report for this Initiative:
¥ Adopted General Plan, which assumes full buildout of land uses throughout the City as
allowed under the 2040 General Plan, including redevelopment of Vallco site,
¥ Adopted General Plan With 2015 Sand Hill Proposal, which is consistent with the first
scenario with additional specificity based on what Sand Hill is currently proposing,
¥ General Plan With Initiative Assuming Vallco as a Viable Mall, which assumes the mall can
be preserved and rehabilitated to become a viable mall.
¥ General Plan With Initiative Assuming Vallco With 2016 Occupancy, which assumes all
three anchors remain closed and only a limited number of businesses remain occupied
consistent with current conditions.
In order to understand the Initiative’s potential impact, each of these potential scenarios are
evaluated with respect to the following:
§ Supportable Retail: Types of retail that might be supportable and attracted to Cupertino,
given Cupertino’s retail trade area and retail environment, with emphasis on anchor
tenants.
§ Needed Improvements: Potential physical and other improvements that would be needed
to accomplish each scenario.
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§ Required Investment: To the extent possible, a high level estimate of required investment.
§ Market Strategies: Strategies to accomplish each scenario, and associated costs if known.
§ Likelihood of Success: An opinion about the relative financial feasibility, and probability
of success of each scenario.
Adopted General Plan: Full buildout throughout the City under the 2040 General Plan, including
redevelopment of Vallco site as allowed under the adopted General Plan (i.e. 389 residential units
allowed at Vallco; other units could be reallocated as per Alt. C in the 2014 EIR). This alternative
does not include the additional community and fiscal benefits proposed by Sand Hill for the Hills
at Vallco Project.
§ Supportable Retail: As documented in this memorandum, it is unrealistic that Vallco will
remain a regional shopping center under any scenario because “solid retail chains like
Sears, K Mart, and JC Penney are faltering,” and high-end retailers like Nordstrom,
Bloomingdales, and Neiman Marcus are consolidating into a smaller number of remaining
Class A malls that are able to draw from a wide geographic area. The retail options left for
Vallco can be categorized as follows:
a. Have a significantly smaller retail footprint with specialty retailers curated for
Cupertino and the surrounding retail trade area with the caveat that the trade area
will be much smaller than that commanded by a regional mall,
b. Focus on attracting commodity or daily needs retailers (i.e. big box commodity
stores, or food/drug retailers with some shop space) whose store spacing
requirements would include Cupertino, or
c. Some combination of “a” and “b” where an even smaller specialty component
would exist in a distinctly different district than the commodity component.
§ Needed Improvements: The supportable retail scenarios described above lend themselves
to an open-air environment. In the case of this scenario, a so-called lifestyle center or a
“Main Street” or “Downtown” environment would be required. In the case of a commodity
or daily needs shopping center, convenience attributes such as easy access (both ingress
and egress), visibility, and ample convenient parking would be called for as competing
projects posses these attributes, and retailers will be cautious not to be at a disadvantage
with respect to attributes enjoyed by a competitor. Regardless of the scenario selected,
demolition of a significant portion (if not all) of the existing mall would likely be required.
§ Required Investment: Required investment will be equal to that required for development
of any new project. Costs would be similar to those incurred at the Village at San Antonio
Center in Mountain View, or other similar projects, and will vary, potentially significantly,
depending upon the extent of vertically integrated mixed-use structures and structured
parking incorporated into the project design. In addition, a developer would need to incur
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the significant costs of acquiring Vallco, demolishing the existing buildings, buying out
existing tenants, preparing plans and processing land use approvals, “carrying” this
upfront investment for a substantial amount of time until a new project is approved, and
financing the construction and development of a new project.
§ Market Strategies: Vallco has long since been a “tainted” mall that does not have a brand: a
clear statement of what makes it unique and compelling as compared with alternative
shopping environments. A clearly articulated branding statement will need to be made.
Furthermore, a clearly articulated plan demonstrating a clear path for redevelopment
including obtaining required governmental approvals and a realistic timeline for
accomplishing this will be required in order to generate attention from prospective retail
tenants. The inclusion of office, residential and hotel uses at Vallco will provide more
“round the clock” activity and a local retail consumer base to help support its retail
offerings, although onsite demand will need to be significantly supplemented from the
surrounding retail trade area. Aggressive economic deals will need to be made with the
first tenants committing to the new project, most likely in the form of rent concessions and
tenant improvement allowances. Brokerage commissions and legal expense will be
significant up front costs.
§ Likelihood of Success: If a developer is able to articulate a clear branding statement, has
the financial capability and staying power to execute redevelopment and can attract tenants
through potentially aggressive lease concessions, then a project of a realistic size and scope
should be achievable. Again, this project is likely to be much smaller than what presently
exists at Vallco Shopping Center.
Adopted General Plan with Sand Hill Proposal: Full buildout throughout the City under the 2040
General Plan, with the Hills at Vallco project redeveloped as proposed in September 2015
(as further specified in Dec. 2015) at the site of the Vallco Shopping Center. This plan calls for
800 residential units, some reallocated from other areas.
§ Supportable Retail: Same as described above under Adopted General Plan scenario.
§ Needed Improvements: Same as described above under Adopted General Plan scenario.
§ Required Investment: Same as Adopted General Plan scenario with the caveat that
vertically integrated mixed use projects can be significantly more complicated and
expensive to build than single use or horizontally integrated mixed use projects.
§ Market Strategies: Same as Adopted General Plan scenario. On-site residential units will
help generate “round the clock” activity and will likely add some incremental on-site sales.9
9 If you consider that each household in Cupertino has approximately 2.87 persons per household (Strategic
Economics, January, 2016), 800 dwelling units would be expected to house 2,296 persons. Compare this
number to the 16 million customer visits at Valley Fair, many of which are repeat customers from the
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§ Likelihood of Success: Same as described above under Adopted General Plan scenario.
General Plan with Initiative Assuming Vallco as Enhanced Mall: Full buildout throughout the
City under the 2040 General Plan as amended by the Initiative, with a re-tenanted 1.2 million SF
enclosed shopping center. The existing 1.2 million square feet of retail-dining-entertainment at
Vallco would need to be maintained as both a “minimum” and a “maximum,” thereby reducing
flexibility and the ability to adapt to changing market conditions. There will be no residential
units, and no office space added to the project.
§ Supportable Retail: As stated earlier, it is unrealistic that Vallco will be successful as a
regional mall under any scenario. Stipulating that Vallco will have a minimum size
approximately equal to that of Valley Fair is unrealistic given the historical experience of
Vallco and the current competitive retail environment in which it operates. Although
Vallco once thrived in the ‘80’s and early ‘90’s, its decline started in the mid-90’s as the
result of competing projects with superior location attributes, anchor tenants better suited
to withstand two decades of retailer consolidation, and greater investment in creating a
more attractive shopping environment. Also, as noted earlier, while 800 residential units
will not attract retailers on their own, a mix of uses including residential and office will add
vitality to a project – vitality that would be precluded under the Initiative.
§ Needed Improvements: The entire mall would need to be gutted and upgraded to a level
of finish that would compete favorably with competing projects. It is unlikely that the
pedestrian bridge and the JC Penney portion of the project could successfully be renovated,
and alternative arrangements would likely need to be made for those facilities. Parking
facilities would also need to be redesigned and rebuilt where they do not function well.
§ Required Investment: In absolute dollars, the required investment would not likely be as
high as under the Adopted General Plan because less development is contemplated at
Vallco. However, the return on investment could reasonably be assumed to be much lower
than the Adopted General Plan scenario given the challenges and costs associated with
repositioning the Mall. Given these challenges, this scenario may not generate high enough
returns to attract sufficient private capital to fund the extensive renovation and
repositioning that the mall would require to be successful. Several owners in the past have
attempted to make Vallco successful at significant financial cost, which has resulted in a
history of ownership changes, foreclosures and deferred maintenance.
§ Market Strategies: A marketing strategy would initially need to focus on finding suitable
anchor tenants. It has already been established that mid-market anchor retailers like Sears
or JC Penney do not have the drawing power required of a regional mall in today’s world;
surrounding retail trade area. In other words, while the on-site residential population will add a certain
amount of vitality and round-the-clock activity, the on-site residential population in and of itself does not
create the demand required to attract retailers that seeks to draw sales from a much broader retail trade area.
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their brands do not help to differentiate the malls they anchor. It is unlikely that high-end
anchor tenants like Nordstrom, Bloomingdales, Neiman Marcus, and the like would be
interested in locating at Vallco if for no other reason than expected cannibalization of sales
at their next closest stores. Some malls have backfilled anchor tenant spaces with Walmart,
Costco, or Target. These anchors are generally not compelling anchors for mall tenants
looking for new environments in which to open. Without anchor tenants, it is unlikely that
main mall tenants would be attracted even to an upgraded Vallco. Many malls have used
entertainment anchors as part of their repositioning strategy, however, Vallco presently has
three major entertainment uses: movies, bowling and an ice rink. If these current
entertainment uses were compelling for mall tenants, Vallco’s occupancy level would be
much higher.
§ Likelihood of Success: Doing something over the same way and expecting a different
result is an unlikely outcome. It certainly would not be a predictor of success for a
redeveloped Vallco. Retail must constantly reinvent itself to stay “fresh” and relevant to
customers. Trying to preserve Vallco as it was decades ago would not result in attracting
new tenants or customers, both of which are critical to project success. Rather, something
substantively new and differentiated from other competing projects should be created at
Vallco in order to draw customer traffic.
General Plan with Initiative Assuming Vallco with 2016 Occupancy: Full buildout throughout
the City under the 2040 General Plan as amended by the Initiative, with no re-tenanting of Vallco, and
no site improvements. This scenario recognizes that, without significant investment and
redevelopment, Vallco is unlikely to improve beyond its present 2016 level of occupancy (314,000
SF retail occupied). This scenario also assumes, as required by the Initiative that there will be no
residential units, and no office at Vallco.
§ Supportable Retail: If no site improvements are made, then “nothing new” would drive
either retailer or consumer interest. Furthermore, the project would remain mostly vacant, a
strong deterrent to customers visiting the center. In this scenario, new tenants likely would
not be attracted to Vallco and the remaining tenants, primarily entertainment, restaurant
and fitness uses, would represent the Mall’s primary draw.
§ Needed Improvements: No major improvements are assumed, in part due to the fact that
there would be little surplus rental revenue from tenants to enable the owner to invest in
needed improvements.
§ Required Investment: While capital investment would be minimal, the owner would
continue to have significant ongoing operating expenses in addition to carrying costs on the
acquisition. In addition, the owner will likely have to bear the cost of lease concessions to
keep current tenants on site.
§ Market Strategies: There is no plausible marketing strategy for a do-nothing scenario.
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§ Likelihood of Success: There is no plausible likelihood of success for a do-nothing
scenario, and Vallco will likely continue to deteriorate to the point of closure.
Conclusion
This memo has identified three key trends that explain both the environment in which all malls
operate, including Vallco, and the reasons some are successful while others are not:
1. Class A malls continue to flourish while Class B and C malls are languishing at an
accelerating rate throughout the United States.
2. Consolidation amongst retailers, including department stores, continues, resulting in
instability among the retail tenant base for malls.
3. Consumers are increasingly looking for well-designed and authentic destination retail
environments where they can not only spend their free and recreational time, but where
they can “experience” something unique and appealing on an emotional level.
Store spacing has been referenced multiple times. Malls are generally tenanted by specialty
retailers who draw from a wide trade area. The more unique the offering, the wider a consumer
draw that can be expected. Both Valley Fair and Stanford Shopping Center offer unique shopping
environments with tenants, particularly anchors, that exist only in those locations.
For example, a daily needs retailer such as a grocery or drug store may draw from as little as a one-
mile radius. Conversely, a luxury retailer like Neiman Marcus might decide it only needs 3 stores
to adequately cover a metropolitan area the size of the San Francisco Bay Area. Valley Fair and
Stanford leasing plans and trade areas may be found in Appendix B.
Department stores are no longer department stores as most of the "departments" left a long time
ago and became “big box” retailers. Today’s department stores can be more accurately described
as large fashion retailers without any particular brand other than their own house labels. The
dramatic consolidation of department stores has led to an environment with fewer available
anchors to backfill vacant spots in malls. In some situations, non-traditional anchors such as
Walmart, Costco, and branded anchors like F21 are filling these gaps, however, these retailers do
not have the star drawing power of traditional department stores. Multi-channel retailing and the
internet in particular offer consumers a compelling choice in the price/convenience equation.
This phenomenon combined with consolidation of the big box retailers that sell commodities
means big box stores are not likely candidates to backfill Vallco’s anchor spaces.
The major projects competing for customers from Vallco’s primary trade area have reinvested
heavily, bringing in new and interesting tenants, and creating an appealing environment and
amenities not found elsewhere. Examples include Valley Fair’s Luxury Collection and Dining
Terrace, and Santana Row’s open air, Main Street environment. The cost of such improvements is
significant.
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Rent and the cost of construction are directly linked. Existing “second hand” space can be both
attractive and competitive as compared with new construction, however, existing spaces may not
have key physical attributes, such as access, proximity to adequate parking, visibility, loading
facilities, and windows, which a retailer is likely to require. Thus, occupying secondhand space in
an older project such as Vallco is not an option for many retailers, as they do not believe that they
will be able to compete effectively from a sub-marginal facility or generate the top line sales
necessary to justify investment in a new store. Complicating matters, Vallco does not generate
much rental income from which to pay for its operating costs or debt service. If forced to stay in its
present configuration, there is no reason to believe Vallco would be able to generate the additional
income required to fund a significant renovation that might make it more attractive to retailers.
Encouraging mixed-use projects is part of a larger nationwide trend of encouraging increased
density and activity. With respect to retail, this trend is not without its own set of issues as it is
much more difficult and expensive to accommodate a mix of uses as opposed to a single retail use.
10 If economically viable, the community, owners, and tenants alike can benefit from the synergies
created by a mix of uses in the same project, increased resilience to an economic downturn due to a
diversity of uses, shared parking, increased scale of development as compared to a single use
projects, and some incremental consumer demand on-site.
Finally, a complete conversation about Vallco cannot occur without referencing the
understandable sentimental attachment the community has to Vallco in its heyday. However, the
retail landscape has evolved in ways that were unimaginable when Dorothy Hamill was practicing
at Vallco’s skating rink in the 1970’s. Redevelopment of obsolete assets is a fact of life, whether the
asset is economically or functionally obsolete. In Vallco’s case, it is both.
Could Vallco be resurrected? Not in its original form, but quite possibly in another form that could
be a centerpiece of the Cupertino community and serve today’s consumer’s needs. Any
resurrection needs to be sufficiently profitable to attract investment in a competitive economic
environment. A strict adherence to the past can result in a distressed shopping center continuing
on a downward spiral, unable to compete in a rapidly changing retail environment, and to
continued blight.
The initiative that is the subject of this memo should be carefully evaluated for unintended
consequences. Similar land use initiatives in other cities have significantly impaired the ability of
10 Cupertino is a suburban, auto-oriented environment that is just starting to experience the market and
economic changes that make increased densities viable. It can be difficult to attract quality retailers because
of the compromises a retailer might need to make as compared with more traditional settings. In addition,
incorporating all the design and facility elements needed to successfully operate retail space as part of a
mixed use project (e.g. parking, vertical transportation systems, loading including accommodating truck
turning movements, trash and recycling areas, utilities, mechanical and venting systems, etc.) is challenging
from a cost perspective. For example, when designing space that does not compete with existing projects’
critical convenience attributes (visibility, parking, and access), overcoming tenant objections can be difficult.
Often it is easier and more cost effective to design horizontally integrated mixed-use projects where the
intent is to include a retail component alongside residential and non-residential uses.
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owners to redevelop a property, mostly due to the significant costs associated with planning and
executing a redevelopment project combined with the uncertainty of obtaining the required
approvals to move a new project forward. In other words, such initiatives have skewed the cost
benefit equation away from making these projects attractive for investment.
Four scenarios describing Vallco’s future have been evaluated in this memo. These scenarios and a
summary of the conclusion for each (in italics) are as follows:
¥ Adopted General Plan, which assumes full buildout of land uses throughout the City as
allowed under the 2040 General Plan, including redevelopment of Vallco site,
A mixed-use project with a smaller retail component has a much higher likelihood of success than
preserving the existing Vallco mall in its present configuration.
¥ Adopted General Plan With Sand Hill Proposal, which is consistent with the first scenario
with additional specificity based on what Sand Hill proposed in 2015,
Allowing for a mix of land uses on the Vallco site has the greatest likelihood of success.
The Sand Hill Proposal that includes 800 residential units and 2,000,000 square feet of office space
has the potential to create a dynamic environment.
¥ General Plan With Initiative Assuming Vallco as Enhanced Mall, which assumes the mall
can be preserved and rehabilitated to become a viable mall.
This scenario is not a feasible option from either a market or development perspective. Trying to
preserve Vallco as it was decades ago will not attract new tenants or customers, especially customers
who are drawn to vibrant, pedestrian-oriented retail environments. Something substantively new
and differentiated from competing projects must be created at Vallco in order to draw customer
traffic. Valley Fair (and Santana Row), and Stanford Shopping Center continue as the successful
Class A malls serving Cupertino’s trade area, market forces having determined there is no need for
an additional Class A regional shopping center serving the Cupertino trade area.
¥ General Plan With Initiative Assuming Vallco With 2016 Occupancy, which assumes all
three anchors remain closed and only a limited number of businesses remain occupied
consistent with current conditions.
Vallco in its present configuration is unlikely to generate the incremental income required to justify
investment in a significant renovation. The most likely outcome with the Initiative is that Vallco will
remain in its current state, or it will continue to decline and face closure like many similar Class C
malls across the United States.
These trends do not mean that a retail component will not be successful at the Vallco site. Rather,
these trends point to the Vallco site needing to be redeveloped into a project that more closely
reflects the realities of today’s consumer and real estate market. The scenarios allowing the
redevelopment of the Vallco site into a mixed-use project with a smaller retail component are far
more likely to succeed than the scenarios that require the existing mall to be left in place, which
have little chance of succeeding.
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In conclusion, as previously stated in the 2014 Report: “The suitability of a retail project for any
given community is a comment on how market forces have evolved over time. Focus on planning
retail projects that are best suited to serve the local community’s needs as opposed to replicating
facilities found elsewhere or resurrecting facilities from another era.”
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Attachment “A”
Historic and Current Retail Conditions
in Cupertino and Surrounding Areas
The following findings were made in the 2014 Report about Cupertino and the surrounding area.
To the extent applicable, updates have been added in italic letters at the end of each finding.
Situational and Demographic Findings
The 2014 Report noted a number of attributes identified in the 2014 BAE Market Study. Like in
2014, these attributes provide important context for this memo:
¥ ABAG’s One Bay Area Plan indicates that Cupertino will gain almost 5,000 households
and over 7,000 jobs between 2010 and 2040.
No change.
¥ Cupertino differs markedly from the County and region with respect to racial and ethnic
breakdown. The City’s Asian population comprised 63.1 percent of total population in
2010. By contrast, just under 35 percent of daytime workers are of Asian descent.
The City’s ethnicity has not changed markedly.
¥ Reflecting high education levels and professional occupations, Cupertino households
earn a significantly higher median household income ($123,700) than Santa Clara County
($87,200), and the Bay Area ($75,800).
No change.
¥ On a per capita basis, Cupertino’s annual retail sales for 2011 are $10,483, compared to
$13,404 for Santa Clara County, and $12,493 for California.
If anything, Cupertino’s annual retail sales have eroded slightly with the recent closure of
Vallco’s anchors, and Santa Clara County’s have increased slightly with the opening of new retail
projects like Hunter Storm’s development on the former Hitachi property.
¥ Office demand continues to be strong, limited primarily by supply constraints and
Apple’s demand for office space.
If anything, demand for Class A office space has only increased as the high-tech industry has
continued to expand in Santa Clara County. The opportunity for Cupertino can easily be seen in
the number of office campuses that recently have been or presently are being assembled in
neighboring cities. Apple’s North San Jose assemblage is just one example.
The City is well served by road infrastructure; however, there exist few regional mass transit
options.
A rapid bus route along Stevens Creek Blvd. has been proposed by VTA, and, once implemented, will bring a
new and much needed public transit option to what has traditionally been an auto-oriented community.
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The City’s resident and workforce populations are distinct beyond the income and ethnicity
differences noted above. For example, Apple is competing with Google, Facebook, LinkedIn and
others for talent. To the extent that these workers are younger (as is often the case), there is a
greater demand for a more urban environment.
Competition for knowledge workers has only increased since the 2014 Report was written. Controversies
such as private busses taking San Francisco residents to and from jobs in Silicon Valley only serve to
highlight the extent to which millennials prefer to live in urban as opposed to suburban environments.
Cupertino’s central location within the Trade Area as well as access to freeways and major
arterials creates the opportunity to introduce new retailers to the City, and perhaps even to
capture sales presently leaking out of the City to other parts of the Trade Area.
The lack of a coherent retail economic development strategy (i.e. a Cupertino “retail branding statement”),
political uncertainly about key redevelopment opportunities, and well tenanted and managed shopping
alternatives all undermine capitalizing on this opportunity.
Cupertino has more jobs than employed residents, leading to a net inflow of workers (31 percent of
people employed in Cupertino live in San Jose, 16 percent live in Cupertino, and 34 percent
elsewhere in Santa Clara County). This daily inflow creates a significant opportunity for well-
located properties in Cupertino to be positioned as destination-oriented retail development.
There are established traffic patterns favoring Cupertino given the established and growing office sector (the
Apple 2 campus being the most obvious growth example). Taking advantage of these established traffic
patterns could be part of a retail economic development strategy.
Daytime workers generate demand for purchases near their workplace, especially meals eaten
during the workday. Additional daytime or to/from work shopping opportunities are created
when shopping alternatives are near to or on the path of travel to/from workplaces.
To the extent that office campuses are not “closed” in that they offer dining and daily needs shopping venues
on-site, demand for daily needs and food and beverage should continue to grow along with the growing base
of office space.
General Retail Findings
There are significant barriers to entry such as lack of available land to build new retail projects in
Cupertino.
The Apple II campus has been approved by the City and is presently under construction. The Main Street
project is also moving forward. There remains a lack of large parcels suitable for new commercial
development; most development will need to be redevelopment of existing but economically obsolete product.
Vallco will be the City’s single greatest opportunity to draw retail dollars to Cupertino. While the
present retail allocation for Cupertino is projected to be adequate to meet the retail needs of
today’s residents and projected population growth, developing an overall retail strategy as a stated
economic development goal will inform that allocation and enhance the City’s ability to create
retail facilities capable of meeting the City’s future needs and meeting any stated goal of recapture
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leaking sales.
The City has begun to address a retail economic development strategy, however, clearly articulated goals
have not yet been made. The absence of such a strategy has created a vacuum in which considerable
speculation about the worth and value of Vallco has occurred. This speculation is not consistent with the goal
of implementing a retail strategy for the City.
Cupertino has a bifurcated retail sector: Daily needs and some commodity categories perform well
while other categories perform poorly or not at all. Overall, the City leaks sales to Cupertino’s
larger shopping Trade Area. That less than eight percent of potential sales from trade area
customers were occurring outside of the Trade Area indicates that the overall retail trade area is
well balanced with respect to retail.
The City’s commodity retail options (daily needs retailers in particular), with the exception of food and
beverage, remain more plentiful than specialty retail options. Sales and sales leakage patterns have not
changed materially in the part two years.
This leakage is probably more as a result of being bested by more aggressive economic
development and better-executed development elsewhere than by any fundamental flaw such as
the City’s location in the Trade Area, transportation issues, or demographics.
Neighboring cities continue to forward economic development initiatives, so Cupertino remains in an even
more competitive environment for attracting specialty retail than at the time the 2014 Report was drafted.
A retail offering tailored to better meet the needs of citizens (both those presently living in
Cupertino and likely future residents, i.e. knowledge workers) will be instrumental if the City
hopes to recapture some of the sales leakage.
Real estate circles have repeatedly identified two trends contributing to “B” and “C” regional malls losing
market share to “A” malls, closing, and being redeveloped: (A) Retail anchors and in-line retailers focused on
other than the high-end market, and the malls that are primarily comprised of these retailers continue to lose
market share while malls with high-end/luxury retailers are gaining market share. (B) Enclosed malls that
“turn their back” on the street by not having stores facing outwards, and instead having blocks-long blank
walls facing outwards are not appealing to today’s customers who increasing value a more urban experience.
A broad array of retail shopping options are available in nearby communities and are easily
accessible to Cupertino residents.
The number of options available to Cupertino residents has not changed materially, however, higher-end
specialty destinations Valley Fair and Stanford Shopping Centers have undergone upgrades since the 2014
Report was drafted.
The leakage analysis shows that city boundaries do not represent a constraint on Cupertino
residents shopping elsewhere or non-residents shopping in Cupertino.
No change. This point is an important one: Political boundaries (in this case the limits of incorporation of the
City of Cupertino) do not represent a boundary on where residents will travel to shop. Distance, traffic
congestion, and time of travel are all greater factors when making shopping decisions than which
municipality might receive the benefit of sales tax revenue.
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With respect to specific categories:
¥ The general merchandise category, which includes businesses that sell everyday items, is
performing well in part because of three mall department stores and one discount
department store whose sales are included. It should be noted that two Trader Joe’s and
two Safeway stores are located just outside the City limits, but that a new Safeway will be
opening within the City shortly.
Two of the three department stores at Vallco have closed, and the third is expected to close
imminently. As could be expected, the general merchandise category is performing slightly worse
than at the time of the 2014 Report, however, performance has been tempered due to increased sales
due to an improving economy and the shopping center on Homestead with the relocated Safeway
now being open.
¥ There are also no major electronics or appliance stores such as Best Buy or Fry’s in
Cupertino, although Sears (in the general merchandise store category) carries a large
variety of appliances and may capture a larger share of resident expenditures that would
otherwise occur in stores dedicated to electronics and appliances.
Sears is now closed, however, many of the items sold by Sears are commodities that can be obtained
easily in or in close proximity to Cupertino.
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Attachment “B”
Summary of Competing Specialty
Shopping Destinations
The 9212 initiative proposes preserving Vallco to be a competitive project with Valley Fair, Santana
Row, and Stanford Shopping Center. Each project’s current status is described below for reference:
Westfield’s Valley Fair Shopping Center opened in 1986. Presently 1,477,393 square feet, the Mall is
home to 272 retailers including Nordstrom, Macy’s, Apple and Cartier producing $494.9 million in
annual sales from over 16 million annual customer visits. Following is a map showing how Valley
Fair defines its trade area:
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Valley Fair is often cited as the highest performing mall in Northern California. This map shows
the breadth an “A” mall draws from up to and including from its biggest competitor, Stanford
Shopping Center. New merchandising strategies such as Valley Fair’s “Luxury Collection,” a
curated cluster of upscale tenants gives shoppers from a wider geographic area reason to make the
trip to Valley Fair. Likewise, additional draw can be expected from Bloomingdales, a planned new
anchor. Shopping destinations such as the Luxury Collection and Bloomingdales broaden the base
for future leasing efforts, so Valley Fair can be expected to continue to increase in size and market
share.
Valley Fair’s leasing plan is shown below:
Westfield recently remodeled its food court to create its “Dining Terrace.”
This amenity creates a place for people to gather, mingle, and linger. Lighting, materials, and the
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inside-outside connection expand the open environment during warmer seasons. Banquettes,
tables that can be moved together, and internet stations allow visitors with various needs (groups,
families, couples) to patronize the dining terrace. Again, these sorts of amenities broaden the
appeal and trade area for the mall.
Opened in 2003, Santana Row is a 647,000 square foot mixed-use project with retail, hospitality,
office, and residential components. There are over 3,500 parking stalls supporting the 70 shops, 20
restaurants, the 212 room Hotel Valencia, 622 rental units, 219 condominium units, and 65,000
square feet of office space.
Originally built in the mid-1950s, Stanford Shopping Center has evolved into a regional mall with
1,364,000 square feet of retail space and restaurants with 140 stores including anchors Neiman
Marcus, Bloomingdale’s, Macy’s, and Nordstrom. Simon recently completed a major remodel that
created four new shop buildings totaling about 140,000 square feet located where Bloomingdale's
formerly operated. Bloomingdale's relocated to Fleming’s former location, and Fleming’s moved to
a new building. The total GLA of the mall, which generates approximately $5.4 million in sales
taxes annually, stayed roughly the same.
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Stanford Shopping Center’s trade area is defined by its owner in the following graphic:
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Attachment “C”
Bibliography and Reference Sources
Badger, Emily. “Why No One Likes Indoor Malls Any More”. The Washington Post. January 6,
2015.
Drummer, Randyl. “Can This Mall Be Saved? Elements Needed for a Turnaround Include Lower
Debt, Deep Pockets”. CoStar.com. October 10, 2012. Available:
http://www.costar.com/News/Article/Can-This-Mall-Be-Saved-Elements-Needed-for-a-
Turnaround-Include-Lower-Debt-Deep-Pockets/142143. Accessed March 15, 2016.
Drummer, Randyl. “The De-Malling of America: What's Next for Hundreds of Outmoded Malls?”
CoStar.com. October 3, 2012. Available: http://www.costar.com/News/Article/The-De-
Malling-of-America-Whats-Next-for-Hundreds-of-Outmoded-Malls-/141980. Accessed March
15, 2016.
Drummer, Randyl. “When Retail Won't Work: Alternative Uses for Converting Former Ghost
Malls Back Into Income-Producing Property”. CoStar.com. October 17, 2012. Available:
http://www.costar.com/News/Article/When-Retail-Wont-Work-Alternative-Uses-for-
Converting-Former-Ghost-Malls-Back-Into-Income-Producing-Property/142285. Accessed
March 15, 2016.
Fantoni, Robert, Fernanda Hoefel and Marina Mazzarolo. “The Future of the Shopping Mall”.
McKinsey & Company. November 2014. Available:
http://www.mckinseyonmarketingandsales.com/the-future-of-the-shopping-mall. Accessed
March 15, 2016.
Heifetz, Justin. "Malls Slump While New Shopping Trends Take Off". Gallup Business Journal.
November 26, 2014.
International Council of Shopping Centers. "Shopping Centers: America's First and Foremost
Marketplace". New York, NY. 2014.
International Council of Shopping Centers. “US Shopping-Center Classification and
Characteristics”. December 2015.
“Malls Into Mainstreets”. Congress for the New Urbanism. 2005.
Mattson-Teig, Beth. “Retail Trends to Watch in 2016: Closings, Relocations, and Food as the True
Anchor”. Urban Land. March 2, 2016.
Nehamas, Nicholas. “Massive Miami Worldcenter Project Ditches Mall, Will Move to ‘High Street’
Retail”. Miami Herald. January 11, 2016.
Niemira, Michael P. and John Connolly. “Office-worker Retail Spending in a Digital Age”.
International Council of Shopping Centers. New York, NY. 2012.
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D EVELOPMENT AND C ONSULTING
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O’Roarty, Brenna and Alan Billingsley. “Exploring New Leasing Models in an Omni-Channel
World”. International Council of Shopping Centers. New York, NY. October 2015.
Peterson, Hayley. “America's Shopping Malls Are Dying A Slow, Ugly Death”. Business Insider.
January 31, 2014. Available: http://www.businessinsider.com/shopping-malls-are-going-
extinct-2014-1. Accessed March 15, 2016.
Pleven, Liam. "Anchors Aweigh: Malls Lose More Department Store Tenants". Wall Street Journal.
February 23, 2016. Available: http://www.wsj.com/articles/anchors-aweigh-malls-lose-more-
department-store-tenants-1456241715. Accessed March 15, 2016.
Powell, Matt. “Sneakernomics: The American Mall Is Doomed”. Forbes.com. August 18, 2014.
Available: http://www.forbes.com/sites/mattpowell/2014/08/18/sneakernomics-the-
american-mall-is-doomed/#227e4be57a55. Accessed March 15, 2016.
Schwartz, Nelson D. “The Economics (and Nostalgia) of Dead Malls”. The New York Times.
January 3, 2015.
Steiner, Yaromir. “The ABCs of ‘B’ and ‘C’ Malls”. Shopping Centers Today. May 2014. Available:
http://steiner.com/wp-content/uploads/2015/11/ShoppingCentersToday_May2014.pdf and
http://steiner.com/2014/06/10/the-abcs-of-bc-malls-2/. Accessed March 15, 2016.
Uberti, David. "The Death of the American Mall". The Guardian. Thursday 19, June 2014.
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9212 Report – City of Cupertino March 2016 | Appendix 7
Appendix 7
Fiscal Analysis Tables
APP-190
9212 Report - City of Cupertino March 2016 | Appendix 7
Appendix 7 Table 1
Summary of Development Scenarios
City of Cupertino 9212 Report
Without Initiative With Initiative
Development Type
Current Built/
Approveda
Adopted
General Plan
Adopted
General Plan
With 2015
Sand Hill
Proposal
General Plan
With Initiative
Assuming
Vallco As
Viable Mall
General Plan
With Initiative
Assuming
Vallco With
2016
Occupancy
Increase/
(Decrease)
With Initiative
Development Buildoutb
Residential
Vallco 0 389 800 0 0
Other Residential 21,412 22,905 22,494 23,148 23,148
Housing (units)21,412 23,294 23,294 23,148 23,148 (146)
Non-Residential
Office (sq.ft.)8,916,179 11,470,005 11,470,005 9,470,005 9,470,005 (2,000,000)
Commercial/Retail (sq.ft.) 3,632,065 4,430,982 4,430,982 4,430,982 4,430,982
Vallco (Allowable)1,200,000 1,200,000 650,000 1,200,000 1,200,000 0
Vallco (Assumed Occupancy) 797,000 1,104,000 598,000 1,104,000 314,000 N/A
Other Retail/Commercial 2,432,065 3,230,982 3,780,982 3,230,982 3,230,982 0
Hotel (rooms)1,116 1,429 1,429 1,429 1,429 0
Net Increase in Potential Developentc
Residential
Market Rate (units)1,768 1,748 1,649 1,649
Affordable (units)d 114 134 87 87
Total Housing (units)1,882 1,882 1,736 1,736
Residential Total (sq.ft.)e 2,258,400 2,258,400 2,083,200 2,083,200
Non-Residential
Office (sq.ft.)2,553,826 2,553,826 553,826 553,826
Retail/Commercial (sq.ft.)798,917 798,917 798,917 798,917
Vallco (Allowable)0 (550,000) 0 0
Vallco (Assumed Occupancy)307,000 (199,000) 307,000 (483,000)
Other Retail/Commercial 798,917 1,348,917 798,917 798,917
Hotel
(room)313 313 313 313
(sq.ft.)156,500 156,500 156,500 156,500
Total Non-Residential (sq.ft.)3,509,243 3,509,243 1,509,243 1,509,243
a. Figures for “Current Built/Approved” are from the “Current Built” column of General Plan Table LU-1, which represents existing
development and all development approved as of 12/10/14. Table LU-1 is included in the Adopted General Plan and the Initiative.
b. Figures for "Development Buildout" are from the "Buildout" column in Table LU-1.
c. Net increase is calculated for each scenario compared against the “Current/Built Approved" figures.
d. Assumes 5% affordable for citywide projects and 10% affordable for Vallco.
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9212 Report - City of Cupertino March 2016 | Appendix 7
Appendix 7 Table 2
Annual Sales Tax Generated from Retail Space
In Constant FY 2015/16 Dollars
City of Cupertino 9212 Report
Without Initiative With Initiative
Current Built/
Approved
Adopted
General Plan
Adopted
General Plan
With 2015 Sand
Hill Proposal
General Plan
With Initiative
Assuming
Vallco As Viable
Mall
General Plan
With Initiative
Assuming
Vallco With 2016
Occupancy
Vallco
Retail Space at Buildout 1,200,000 sq.ft. 1,200,000 sq.ft. 650,000 sq.ft. 1,200,000 sq.ft. 1,200,000 sq.ft.
Occupancy Rate 66% 92% 92% 92% 26%
Occupied Retail Space 797,000 sq.ft. 1,104,000 sq.ft. 598,000 sq.ft. 1,104,000 sq.ft. 312,000 sq.ft.
Taxable Retail Sales per sq.ft.a $124 $149 $300 $124 $74
Estimated Taxable Sales 99,055,000 $164,496,000 $179,400,000 $137,210,439 $23,088,000
Increase (Decrease) in Taxable Sales $65,441,000 $80,345,000 $38,155,439 ($75,967,000)
Other Retail/Commercial
New Retail Space 798,917 sq.ft. 1,348,917 sq.ft. 798,917 sq.ft. 798,917 sq.ft.
Occupancy Rate 92% 92% 92% 92%
Occupied Retail Space 735,004 sq.ft. 1,241,004 sq.ft. 735,004 sq.ft. 735,004 sq.ft.
Taxable Retail Sales per sq.ft.a $149 $149 $149 $149
Taxable Retail Sales $109,500,000 $184,900,000 $109,500,000 $109,500,000
Total Increase in Taxable Retail Sales $174,941,000 $265,245,000 $147,655,439 $33,533,000
Projected Sales Tax Revenuesb $1,750,000 $2,650,000 $1,480,000 $340,000
Note: Dollar figures rounded to the nearest thousand. Numbers may not add up precisely due to rounding.
a. Historical data on taxable retail sales was reviewed for Vallco and other establishments throughout the City. The estimates used in
the analysis are based on actual performance from 2014, adjusted as necessary to appropriately reflect each retail area and scenario.
Taxable sales at Vallco in 2014 were used alongside occupancy data of the mall to estimate the average retail sales per square foot of
occupied space. This data was adjusted downward by 40% for the General Plan with Initiative Assuming Vallco with 2016
Occupancy because a substantial portion of currently occupied space is for entertainment and fitness uses. The same type of analysis
was done for the areas located outside of Vallco, based on 2.4 million sq.ft. and 92% occupancy. Reported sales are adjusted to 2015
dollars. See Appendix 7 Table 6.
b. Projected sales tax revenues assumes City receives 1% of taxable sales, according to sales tax data.
Source: City of Cupertino, MuniServices, Strategic Economics, Seifel Consulting Inc.
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9212 Report - City of Cupertino March 2016 | Appendix 7
Appendix 7 Table 3
Annual Sales Tax Revenues from Business-to-Business (B-to-B) Transactions
In Constant FY 2015/16 Dollars
City of Cupertino 9212 Report
Without Initiative With Initiative
Adopted
General Plan
Adopted
General Plan
With 2015
Sand Hill
Proposal
General Plan
With Initiative
Assuming
Vallco As
Viable Mall
General Plan
With Initiative
Assuming
Vallco With
2016
Occupancy
Office
Increase in Office Space 2,553,826 2,553,826 553,826 553,826
Taxable B-to-B Sales per sq.ft.a $40 $40 $40 $40
Estimated Taxable B-to-B Transactions $102,200,000 $102,200,000 $22,200,000 $22,200,000
Projected Sales Tax Revenuesb $1,020,000 $1,020,000 $220,000 $220,000
Note: Dollar figures rounded to the nearest thousand. Numbers may not add up precisely due to rounding.
a. Based on recently reported B-to-B sales for businesses (exclusive of Apple) most likely to occupy office space
and the current leasable office squaer footage (excluding Apple) in Cupertino, taxable B-to-B sales ranges
$37 to $53 per square foot for the past three fiscal years.
b. Projected sales tax revenues assumes City receives 1% of taxable sales.
Source: City of Cupertino, MuniServices, Seifel Consulting Inc.
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9212 Report - City of Cupertino March 2016 | Appendix 7
Appendix 7 Table 4
Growth in Annual General Fund Property Tax Revenue
In Constant FY 2015/16 Dollars
City of Cupertino 9212 Report
Without Initiative With Initiative
Development Type
Incremental
Assessed Value per
Unit/Sq.Ft./Rooma
Adopted General
Plan
Adopted General
Plan With 2015
Sand Hill
Proposal
General Plan
With Initiative
Assuming Vallco
As Viable Mall
General Plan
With Initiative
Assuming Vallco
With 2016
Occupancy
Estimated Incremental Assessed Value
Residential
Market Rate Unitsb $560,000 /unit $990,100,000 $978,900,000 $923,400,000 $923,400,000
Affordable Unitsc $273,000 /unit $31,100,000 $36,600,000 $23,800,000 $23,800,000
Net Growth in Assessed Value $1,021,200,000 $1,015,500,000 $947,200,000 $947,200,000
Non-Residential
Officed $520 /sq.ft. $1,328,000,000 $1,328,000,000 $288,000,000 $288,000,000
Commercial/Retail
Vallcoe N/A /sq.ft.N/A N/A N/A N/A
Other Retail/Commerciald $480 /sq.ft. $383,500,000 $647,500,000 $383,500,000 $383,500,000
Hoteld 300,000$ /room $93,900,000 $93,900,000 $93,900,000 $93,900,000
Net Growth in Assessed Value $1,805,400,000 $2,069,400,000 $765,400,000 $765,400,000
Total Incremental Assessed Value $2,826,600,000 $3,084,900,000 $1,712,600,000 $1,712,600,000
Estimated Incremental Property Tax Revenues to the City
Annual Property Tax Revenues City's Share: 5.60%$1,580,000 $1,730,000 $960,000 $960,000
Note: Dollar figures rounded to the nearest hundred thousand for projected assessed values and to the nearest thousand for property tax
revenues. Numbers may not add up precisely due to rounding.
a. Incremental assessed value represents the increase in property value added by new development, calculated by subtracting existing land
value from total development value. Non-residential values include estimated value for personal property / tenant improvements ($100 per
sq.ft. of office, $50 per sq.ft. of commercial/retail, and $30,000 per hotel room).
b. Assumes mid-range development at $650 per sq.ft. value, unit size of 1,200 sq.ft., 25 units per acre, and land value of $5.5 million per acre
based on "City of Cupertino, Residential Below Market Rate Housing Nexus Analysis" by Keyser Marston Associates, Inc. (April 2015).
c. Affordable unit value is assumed to be $259,000 for very low income units and $287,000 for low income units in "City of Cupertino,
Residential Below Market Rate Housing Nexus Analysis" by Keyser Marston Associates, Inc. (April 2015).
d. Incremental assessed value calculated based on prototype #2 (commercial/retail), prototype #4 (office), prototype #6 (hotel) from
"City of Cupertino, Non-Residential Jobs-Housing Nexus Analysis" by Keyser Marston Associates, Inc. (April 2015).
e. This analysis does not reflect growth in assessed value at commercial/retail space at Vallco. Incremental assessed vallue would most likely
increase under Adopted General Plan With 2015 Sand Hill Proposal due to redevelopment of the property and decrease under General Plan
With Initiative Assuming Vallco With 2016 Occupancy due to reassessment.
Source: City of Cupertino, Keyser Marston Associates, Inc, Seifel Consulting Inc.
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9212 Report - City of Cupertino March 2016 | Appendix 7
Appendix 7 Table 5
Net Increase in Annual Transient Occupancy Tax (TOT) Revenues
In Constant FY 2015/16 Dollars
City of Cupertino 9212 Report
Without Initiative With Initiative
Assumptiona
Adopted
General Plan
Adopted
General Plan
With 2015 Sand
Hill Proposal
General Plan
With Initiative
Assuming
Vallco As
Viable Mall
General Plan
With Initiative
Assuming
Vallco With
2016
Occupancy
Number of Rooms 313 313 313 313
Occupancy Rate 80%
Number of Occupied Rooms 250 250 250 250
Estimated Room Charge $215
Estimated Annual Hotel Room Revenues $19,700,000 $19,700,000 $19,700,000 $19,700,000
City's TOT Rate 12%
Projected Annual TOT Revenues $2,360,000 $2,360,000 $2,360,000 $2,360,000
a. Based on typical hotel occupancy and room rates in Cupertino based on TOT data. Projected TOT revenues assumes
City receives 12% of taxable sales.
Source: City of Cupertino, Seifel Consulting Inc.
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Page | 1
County of Santa Clara
Office of the Sheriff
West Valley Patrol Division
1601 S. De Anza Boulevard, Suite 148
Cupertino, California 95014
(408)868-6600
Rick Sung March 1, 2016
Captain
Cupertino Citizen’s Sensible Growth Initiative
The City of Cupertino contracts the Santa Clara County Sheriff’s Office for police services. To
determine the Initiative’s impact on the need for services, calls for service and reported incidents
at Vallco from 2013 to present were analyzed.
Crime Data for Vallco Shopping Mall – 2013 to Present
In any active shopping mall, theft crimes will comprise the majority of incidents, specifically
shoplifting. Second to that, patrons leaving valuables in their vehicles while they shop will
attract vehicle burglars, making these incidents of high frequency as well.
In recent months, however, the number of thefts and shoplifting incidents decreased drastically,
but the occupancy of the mall has decreased during this time as well. Moreover, two of the three
large department stores closed during that time (see Figure 1). Macy’s closed in March of 2015
and Sears in October of 2015. JC Penney is set to close in March of 2016.
Figure 1
0
20
40
60
80
100
120
140
160
180
2013 2014 2015-Feb 2016
Thefts
Veh Burgs
Appendix 8
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Criminal Hot Spot and Dumping Ground
Vandalism and Stolen/Recovered Vehicles
Although the Mall is not completely vacant, Vallco has seen an uptick in vandalism incidents
and the number of stolen vehicles and recovered stolen vehicles (see Figure 2). Deputies did not
recover any stolen vehicles at Vallco in 2013, but recovered one in 2014 and six in 2015/2016.
Those six were recovered after Macy’s and Sears closed.
Figure 2
Found Property
Also up within the last year is the number of found property reports at Vallco (see Figure 3).
There were only two documented incidents of found property in 2013 and 2014, but in
2015/2016 there were six.
In 2013, a weapon, or wooden baton, was found in a parking structure. In 2014, a suspect’s
backpack was left at the scene of a vehicle burglary. In 2015/2016, the property found included
wallets stolen from prior vehicle burglaries in other jurisdictions, important documents and credit
cards as used in identity theft crimes, garbage and drug paraphernalia.
Figure 3
0
2
4
6
8
10
12
14
16
18
20
2013 2014 2015-Feb 2016
Vandalism
Drugs/Alcohol
Stolen/Rec Vehs
0
1
2
3
4
5
6
7
2013 2014 2015-Feb 2016
Found Property
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Vallco’s Location
The proximity to Interstate 280, from N. Wolfe Road, makes the location ideal for marking a
quick tag or dumping a stolen vehicle, giving criminals a quick escape route and avenue of
disassociation. But the concern then becomes that if the property becomes or remains
abandoned, the location will be ideal for all types of criminal activity, e.g., a meet up spot for
drug sales, a place to party, an encampment space for transients, etc.
Abandoned Property and the Broken Windows Theory
In criminology, there is a theory known as the “Broken Windows Theory.” The theory is that a
building with broken windows attracts crime. Broken windows are “that one sign of
abandonment or disorder and will encourage further disorder.”1 The theory, however, may relate
to more than just broken windows. “Boarded doors, unkempt lawns, and broken windows can
signal an unsupervised safe haven for criminal activity or a target for theft of, for example,
copper and appliances.”2
Vallco is not completely vacant, but as the occupancy of the Mall decreased within the last year,
there was an increase in the calls for service related to vandalism. There is concern that if Vallco
Shopping Mall becomes an abandoned property altogether, the calls for service in this regard
will increase.
Cupertino’s Nuisance Abatement Ordinance, codified in Chapter 1.09 of its Municipal Code,
permits the City to abate properties which have deteriorated to the point of becoming a
“nuisance” as defined in Section 1.090.030. In addition, the City has other remedies such as civil
action for abatement of a nuisance.
Conclusion
Abandoned properties attract and enable crime. The longer the property sits abandoned, the
more it deteriorates, the more known and frequented by criminals it becomes, increasing crime.
Conversely, if the mall is re-tenanted or if it is developed into a mix use center, similar to the
trends identified above, it is anticipated with more activity and increased population, the need for
police services will increase as the opportunity to commit crimes increases.
1 Kelling, George L. and Wilson, James Q., 1982. The Atlantic Monthly, “Broken Windows: The Police and
Neighborhood Safety.” 249:3, 29-38.
2 Arnio, Ashley N., Baumer, Eric P., and Wolff, Kevin T., 2012. Social Science Research, “The Contemporary
Foreclosure Crisis and US Crime Rates,” 41:6, 1599-1600.
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