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EXT-2025-002 APPROVAL LETTERCITY OF CUPERTINO 10300 Torre Avenue, Cupertino, California 95014 (408) 777-3308 To: Mayor and City Council Members Chairperson and Planning Commissioners Fro /r'uke Connolly, Assistant Director of Community Development Prepared by: Gian Paolo Martire, Senior Planner Date: June 18, 2025 Subject: Extension request, EXT-2025-002, for a period of 18 -months, for a previously approved development (DP -2021-002, ASA-2021-004, U-2021-001, TM -2021-003, TR- 2022-006, EA -2022-005) to allow the development of a mixed -use redevelopment project consisting of 34 residential units and approximately 7,482 square feet of commercial space, the removal and replacement of 51 development trees, a range of site and landscape improvements, and the adoption of a Mitigated Negative Declaration, located at 1655 S. De Anza Blvd. (APNs: 366-10-061, -126) Chapter 19.12 of the Cupertino Municipal Code allows for administrative approval of time extensions of expiring permits and other entitlements. The Director reports his decision to the City Council and Planning Commission in time to allow an appeal of the decision within fourteen calendar days. DISCUSSION The applicant, Carlson Chan, on behalf of Prospect Venture LLC, is requesting an 18 -month extension of a previously approved Mitigated Negative Declaration(EA-2022-005), Development Permit (DP -2021-002), Architectural & Site Approval (ASA-2021-004), Use Permit (U-2021-001), Vesting Tentative Map (TM -2021-003), and Tree Removal Permit (TR-2022-006) to allow the development of a mixed -use redevelopment project consisting of 34 residential units and approximately 7,482 square feet of commercial space, the removal and replacement of 51 development trees, a range of site and landscape improvements, and the adoption of a Mitigated Negative Declaration, located at 1655 S. De Anza Blvd. The City Council approved the project on June 21, 2023; the approval being valid for a period of two years, expiring on June 21, 2025 (see Attachments 1-6). Prior to the project's June 21, 2025, expiration, the applicant submitted an extension request letter, dated April 2, 2025 (Attachment 7). The letter states that an extension is needed to navigate the ongoing market conditions, particularly interest rate hikes and fluctuations in material costs, which have significantly impacted project financing. In accordance with Cupertino Municipal Code Chapter 19.12.030, the 18 -month extension request is within the two-year extension which is the maximum period that can be granted. ACTION 1 EXT-2025-002 DP -2021-002, ASA-2021-004, U-2021-001, TM -2021-003, TR-2022-006, EA -2022-005 Page 2 The Director of Community Development approves the extension application, file no. EXT- 2025-002 with the following conditions of approval: 1. EXTENSION OF EXPIRATION PERIOD AND BUILDING PERMIT(S) The expiration period of file nos. DP -2021-002, ASA-2021-004, U-2021-001, TM -2021-003, TR- 2022-006, EA -2022-005 are hereby extended for a period of 18 -months, expiring on December 21, 2026. An application for building permits shall be filed prior to the expiration date of the Development Permit, Architectural & Site Approval, and Tree Removal Permit otherwise the project approval will become null and void. 2. CONDITIONS OF APPROVAL All conditions of permit approvals for DP -2021-002, ASA-2021-004, U-2021-001, TM -2021- 003, TR-2022-006, and EA -2022-005 shall remain in effect through the extension period. 3. INDEMNIFICATION As part of the application, to the fullest extent permitted by law, the applicant shall agree to indemnify, defend with the attorneys of the City's choice, and hold harmless the City, its City Council, and its officers, employees, and agents (collectively, the "indemnified parties") from and against any liability, claim, action, cause of action, suit, damages, judgment, lien, levy, or proceeding (collectively referred to as "proceeding") brought by a third party against one or more of the indemnified parties or one or more of the indemnified parties and the applicant related to any Ordinance, Resolution, or action approving the project, the related entitlements, environmental review documents, finding or determinations, or any other permit or approval authorized for the project. The indemnification shall include but not be limited to damages, fees, and costs awarded against the City, if any, and cost of suit, attorneys' fees, and other costs, liabilities, and expenses incurred in connection with such proceeding whether incurred by the Applicant, the City, or the parties initiating or bringing such proceeding. The applicant shall agree to (without limitation) reimburse the City its actual attorneys' fees and costs incurred in defense of the litigation. Such attorneys' fees and costs shall include amounts paid to the City's outside counsel and shall include City Attorney time and overhead costs and other City staff overhead costs and any costs directly related to the litigation reasonably incurred by City. The applicant shall likewise agree to indemnify, defend, and hold harmless the indemnified parties from and against any damages, attorneys' fees, or costs awards, including attorneys' fees awarded under Code of Civil Procedure section 1021.5, assessed or awarded against the indemnified parties. The Applicant shall cooperate with the City to enter a Reimbursement Agreement to govern any such reimbursement. The Applicant shall agree to (without limitation) reimburse the City for all costs incurred in additional investigation or study of, or for supplementing, redrafting, revising, or amending, any document (such as an Environmental Impact Report, negative declaration, specific plan, or general plan amendment) if made necessary by proceedings challenging the EXT-2025-002 DP -2021-002, ASA-2021-004, U-2021-001, TM -2021-003, TR-2022-006, EA -2022-005 Page 3 project approvals and related environmental review, if the applicant desires to continue to pursue the project. The Applicant shall agree that the City shall have no liability to the Applicant for business interruption, punitive, speculative, or consequential damages. 4. NOTICE OF FEES, DEDICATIONS, RESERVATIONS OR OTHER EXACTIONS The Conditions of Project Approval set forth herein may include certain fees, dedication requirements, reservation requirements, and other exactions. Pursuant to Government Code Section 66020(d) (1), these Conditions constitute written notice of a statement of the amount of such fees, and a description of the dedications, reservations, and other exactions. You are hereby further notified that the 90 -day approval period in which you may protest these fees, dedications, reservations, and other exactions, pursuant to Government Code Section 66020(a), has begun. If you fail to file a protest within this 90 -day period complying with all of the requirements of Section 66020, you will be legally barred from later challenging such exactions. This approval of the extension request is effective June 18, 2025. The 14 -calendar -day appeal period will expire on July 1, 2025. Attachments: 1. City Council Resolution No. 23-075 2. City Council Resolution No. 23-076 3. City Council Resolution No. 23-077 4. City Council Resolution No. 23-078 5. City Council Resolution No. 23-079 6. City Council Resolution No. 23-080 7. Extension Request Letter Dated March 19, 2025