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Director's Report OFFICE OF COMMUNITY DEVELOPMENT CITY HALL 103�0 TORRE AVENUE • CUPERTINO, CA 95014-3255 C U P E RT 1 N ta (408) 777-3308 • FAX (408) 777-3333 •�lanning[a�cupertino.org Subject: Report of the Community Development Director� Planning Commission Agenda Date: Tuesday, February 22, 2011 The City Council met on February 15, 2011 and discussed the following item(s) of interest to the Planning Commission: 1. Development Permit Process - City Council reviewed Planning Commissiori s recommendation regarding the proposed changes to the Permit Process and approval thresholds and the Public Engagement Policy. The Council approved the recommendations with the amendments listed below: • Public Engagement Policy: Increase the notification threshold for the "Collaborate level" to 25 residential units. � Project approval thresholds: Council to approve projects with > 50 residential units, 50,000 s.f. of commercial/office/non-residential or 100,000 s.f. of industrial space • Discuss keeping the current noticing radii for minor General Plan Amendments and Zoning applications. • Initiate a separate, limited review of the R1 Ordinance related to Design Review, story poles and noticing. Staff will prepare the related ordinance amendments and present them to the Planning Commission for review in Summer 2011. The review of the R1 items will be included in a current project in the Council's Work Program "Develop Uniform Standards for Residential Lots Sloped 15% to 30%". 2. Petition for Reconsideration of the Miller Avenue Parkin�Pad - City Council denied the reconsideration upholding their decision to deny the appeal on January 4, 2011. 3. Petition for Reconsideration of the Wireless Facility at Results Way - City Council denied the reconsideration upholding their decision to deny the appeal on January 4, 2011. Upcoming Dates: March 9-11, 2011 Planner's Institute in Pasadena Enclosures: News Articles G: � Planning � AartiS � Director's Report � pd2-22-11.doc � ' �� ��� CUPERTINO SHORTS: ANNUAL VIA BALL RETURNS FEB. 25 AT VILLA RAGUSA Silicon Valley Community Newspapers Posted: 02/03/2011 08:01:12 PM PST Free backyard compost classes set for Feb. 16 The city of Cupertino's free compost workshop wili be held on Feb. 16 at Cupertino Community Hall, 10300 Torre Ave., from 7 to 9 p.m. A second class will be held on March 16 at the same time and location. Residents will learn the ins and outs of composting in their own back yards. To register for the classes, contact the Cupertino Pubtic Works Department at 408.777.3354. Residents attending the compost workshop will receive a free home composting bin within two weeks after the class. For more information, e-mail envi ronmental@cupertino.org. Annual Via Ball returns Feb. 25 at Villa Ragusa The 2011 Via Ball will be held on Feb. 25 and the theme this year will be "Join Us On The Red Carpet," a tribute to the Academy Awards. The 16th annual ball is the largest fundraiser of the year for Via Services, which serves children and adults in Santa Clara County with developmental disabilities. Guests will be greeted by searchlights and "paparazzi," and the dinner will be in the grand style of a post-Oscar, movie studio bash. This year's event is being held at Villa Ragusa, 35 Second St. in Campbell, from 5:30 to 10:30 p.m. For tickets or more information, call 408.243.7861 or visit www.viaservices.org. ��+ TvVO MAJOR OPPORTUNITIES FOR PUBLIC TD VVEIGH IN ON LEHIGH CEMENT PLANT By Pam Marino � Email the author � February 4, 2011 A public hearing on Feb. 8 at the county level and a written comment period to the air quality district is now open until March 25 give residents a chance to voice opinions. A chorus of voices has been raising questions in recent months about whether or not the Lehigh Southwest Cement Plant follows government-mandated rules, and now the public has two formal opportunities to chime in. The first opportunity is a long-awaited public hearing before the Santa Clara County Board of Supervisors to determine a major land use issue at 1:30 p.m. next Tuesday, Feb. 8, in the board chambers at 70 W. Hedding St., San Jose. The second opportunity is through submitting written comments to the Bay Area Air Quality Management Disfirict (BAAQMD) by March 25 about the renewal of a permit that regulates air emissions coming from Lehigh's operations. Board of Supervisors to Determine "Vested Rights" The battle over the cement plant and quarry located in the foothills next to Cupertino heats up significantly Tuesday, when the Supervisors may decide in an evidentiary hearing if Lehigh, owned by Heidelberg Cement, has the right to mine its land without new permits. The citizen group No Toxic Air is planning a rally before the hearing at 1 p.m. outside of the county's headquarters to garner support for its contention that Lehigh does not have what are called "vested rights" to mine on 2,656 acres of its property. "We absolutely want the board to rule 'no,' they dori t have vested rights on portions of this land, and that they absolutely need to go through the permitting process if they want to use this land," said Paula Wallis, one of the leaders of No Toxic Air. Lehigh officials contend that because previous owners of the land have been conducting mining operations there since the early 20� Century, it does have vested rights, and can operate under existing land use permits. "For over 70 years the county of Santa Clara has over and over again indicated that the site was a vested mining site, and that includes three thorough land use reviews;' said Marvin Howell, Lehigh's director of land use planning and permitting. "At no time did the county ever indicate that the site was not vested." Howell said the company is confident that the historical record will back up its claim. The major sticking point for Lehigh's opponents? Some believe that if the supervisors grant vested rights to most of Lehigh's property, the company will not have to apply for new permits, requiring new environmental impact reports. That's only partly true. While no new use permits would be required with vested rights, county Senior Planner Gary Rudholm said that Lehigh would have to submit reclamation plans, which would include environmental review. The California Environxnental Quality Act requires the lead agency to conduct environmental review of the potential environmental impacts of a proposed reclamation plan, just as it requires this type of review for a use permit, Rudholm said. Leaders of citizen groups opposing vested rights are already unhappy with the continued dumping of unused quarry rock in one area of the company's land, called the East Materials Storage Area (EMSA). Originally a hearing was scheduled for last November to consider vested rights just for EMSA. The hearing was postponed until February for more study by county planners. Now, vested rights needed to be considered for nearly all of Lehigh's land, not just EMSA, in light of the upcoming land use issue over a new pit mine, according to a fact sheet provided by planners on the county's website. Cupertino Councilman Barry Chang announced at Tuesday's Council meeting that should supervisors vote in favor of Lehigh having vested rights, No Toxic Air, of which he's a part, will immediately begin gathering voters' signatures for a ballot referendum to overturn the decision. BAAQMD Seeking Input for Emissions Permit Renewal There is also the question of emissions. Just what, and how much Lehigh's cement kiln emits into the Santa Clara County air is a looming issue. Like all major manufacturing facilities in the United States, Lehigh is required to obtain a permit with the Environmental Protection Agency under Title V of the 1990 Clean Air Act. The BAAQMD administers the permit, which covers emissions limits and standards, monitoring, recordkeeping and reporting requirements. A five-year permit was granted to the facility in 2003. As Lehigh and BAAQMD wound their way through the 2008 renewal process, new equipment rules required by the agency lengthened the process. Then, early last year, the agency withdrew the permit, because of new EPA emissions rules that would be enacted later in 2010. The new rules require Lehigh to reduce its mercury emissions by 90 percent by the year 2013, according to BAAQMD documents. Lehigh officials said they are well on their way to nleeting those requireinents with the installation of new high tech equipment. Now that the new mercury rules are in place, the BAAQMD restarted the permitting process, which includes collecting public comments. Opponents, like organizers of No Toxic Air and Quarry No, have been contending during public hearings at recent city council meetings in Cupertino, Los Altos Hills and Los Altos, that they are concerned whether the BAAQMD's oversight has been adequate. In iurn, the city councils of Los Altos and Los Altos Hills have recently launched ad hoc committees to study air and water quality issues, as well as land use issues. Anyone interested in submitting comments can do so by directing them to Thu Bui, Bay Area Air Quality Management District, 939 Ellis Street, San Francisco, 94109, or by e-mail to tbui@Uaaqmd.gov. Bui s phone number is 415-749-5119. Cupertino Patch Cupertino`s Commercial Real Estate Market is Strong Phil Mahoney, a commercial real estate expert, discusses the pluses and minuses of the way Cupertino does business. By �k.r�r<e f:rnst � f:�:ra�ai� ff�� ���?l � February 13, 2011 Cupertino Patch sat down with Phil Mahoney, executive vice president of the firm, and asked him his thoughts on the real estate market in Cupertino. Cupertino Patch: Overall, in your opinion, how are things looking in Silicon Valley? Phil Mahoney: 2010 was the beginning of a snapback year as far as the valley's concerned. And in the valley, San Francisco (is) really leading that snapback in employment and in job growth, which leads to our world—real estate. Rent (is) starting to climb again, vacancies (are) falling again, (and) we haven't seen (that) since 2007. Patch: Is the same true for the South Bay? Mahoney: It is, although it is still micro-market driven. Palo Alto: white hot market, 2 percent vacancy, rents going up monthly. Milpitas: not so much. So it really depends where you are. Patch: How about Cupertino? Mahoney: Cupertino: tremendous absorption. We lease over 400,000 feet to Apple; (the market is) pretty much driven by Apple. And also by Amazon—Amazon leased about 150,000 feet toward the end of last year. They bought a company called Lab 126; that's their group there. So they've grown dramatically. Also Apple absorbed the HP Cupertino campus, which is about 13 million feet, and paid a hefty number, over $300 million for the site. They've made a commitment there that they can build 3-5 million square feet. So Apple sees themselves in Cupertino far a long time to come with literally millions of feet and tens of thousands of new employees yet to come over the next decade. So Cupertino is really sort of a poster child of the Silicon Valley recovery, manifested in real estate. And it's getting preriy full, so there's not going to be, I think, nearly the activity in Cupertino going forward that there's been (in the past), because there just isn't the supply. Patch: So, you think it's just going to stabilize? Mahoney: Yes. Stabilize off as far as rents are concerned. The neighboring markets of the west valley, be it Campbell to the south or west San Jose; be it Palo Alto to the north, which is already pretty full. They will feel some of what would have gone to Cupertino. As will Sunnyvale. (It) not only has, but is, absorbing companies growing there that may have gone to Cupertino in the past but simply don't have the space to do it. So, the obvious question, "Why don't they build more in Cupertino?" Cupertino has a very myopic, very narrow view in their governance. The council, and you can quote me, their council is almost backward as they look at the future. If I sound harsh, I should be; I've owned property there. They listen to the whim of the minority that will show up at a council meeting, without truly surveying the majority—and also caring not about their region. They have a serious jobs-housing imbalance in Cupertino, and it's about to get extraordinarily out of whack with what Apple's going to do, and yet obvious sites that could be redeveloped for high-density housing, they listen to the fear mongers (who) say, "Oh Condo-tino. We don't' want Cupertino to become Condo-tino, and what are we going to do with our schools? " When they won't look at the hard facts. Where they won't understand that when you're in starter homes that are condos or townhouses, it's usually "dinks," dual-income (no kids) people, that would support their retail. Then (Cupertino) bemoan(s) the fact they don't have enough retail dollars. Well, they shoot themselves in the foot. So I've been as unimpressed with Cupertino as I have been impressed with places like Sunnyvale and Santa Clara and even San Jose under Mayor (Chuck) Reed that really are very forward looking. You know, (they think) "How do we help businesses grow? How do we balance our jobs and housing?" Cupertino is on ABAG's (Association of Bay Area Governments) hit list for their lack of forward thinking as it relates to housing. You know, "Not in our backyard." It's a din of NIMBYism. Patch: How does the housing market look? Mahoney: The housing markets are recovering. We're starting to se—again in north San Jose, and again we're getting a little forward thinking—they're starting to build some high-density housing, which is needed. Which again is so angering about Cupertino—"Oh we want low-rise," (they say.) You're an infill city; you are what you are. If you want your hills to remain green, then when you have an infill site, you need to have density where it should be. Smart growth, not just growth for the sake of it, not sprawl, but along transit lines, along rail lines, along, for instance, the Stevens Creek (Boulevard) area where you have transportation, where you have services. And we're seeing that in San Jose, along the First Street corridor where about 4,000 housing units will be under development here shortly or are already in the process—it's desperately needed. We need to get housing there, because we can't, without a housing stock that's growing, we can't afford, or I should say, our housing affordability impacts our ability to get new engineers into our area, which chokes off our lifeblood. Patch: What do you mean by that? Mahoney: We're in a whole different world than Detroit was even when they were on top of the world, because they were more automobile-centric, where we have so many different industries. But we can kill our own goose petty quickly, and city councils like Cupertino would do well to do nothing rather than do something wrong, which they have perpetually done. As opposed to some forward-thinking (cities) like Sunnyvale with their Town Center downtown, it's old, blighted. Now, it's had some problems. It came online at the worst possible time, 2007. You know, that happens. Real estate is a tough business, and those that get it right are very wealthy, and they're rewarded very well. But just as many go broke because (ofl their timing. It wasn't that they were any less smart; maybe they were a little less lucky. Those that were developing in 2000 didn't see 9/11; who did? Right? There are events beyond your control, and in the last downturn, real estate obviously became much more of it than in the dot-com era, where it was dot-coms (that) were much more of the downturn. Patch: Cupertino doesn't have light rail, and Caltrain's closest station is in San Jose; does the lack of mass transit hurt Cupertino in terms of real estate? Mahoney: Absolutely. Patch: In terms of home ownership and business? Mahoney: Across the board. Transportation, congestion, the pollution you're breathing on the streets of Cupertino, and, again, never looking at anything that could have gone down the (Interstate Highway 280) corridor—now they're not alone on that. There was a time that having a rail down the 280 corridor, the median, could have made some sense—but it takes commitment, it takes money. We kind of get the government we ask for because we all want our programs, but we don't want to pay for it. I think Cupertino is a perfect example of that. I've been to so many council meetings there and I've walked away shaking my head in disgust at how they are swayed by a very vocal, but very small minority. And they have what they have, and they have it better than most, right? Patch: Do you think the structure of the city council being a part-time city council has any influence on that? PM: I don't really know what it is. Pve scratched my head on that, because Sunnyvale's part time. They're one of the best-run cities in Northern California, if not the nation. They've known how to balance business from the start, and they had some very rocky starts in the '70s and '80s with an incredible amount of pollution. Which they didn't know, I mean nobody knew, what the semiconductors did to many of our aquifers. But that's being cleaned up. It didn't stop them from saying, `Oh we won't grow again,' or `We won't have a balance between where we can have high density.' I mean they have a number of trailer parks in Sunnyvale, which are low income. (Cupertino) says, "Oh, we don't want that here." Well, who's going to wash your car, who's going to work here? You need that in the fabric of society. � MI �F .. .r�: Prometheus Real Estate Group Develops Franco Park With City of Cupertino Cupertino's newest park adjoins Markham Apartments SAN FRANCISCQ, Feb. 17, 2011 /PRNewswire/ -- The city of Cupertino unveils a new city park developed in partnership with f�r�r�r��tr���a� ���1 �����t�.� �; ���,��� �n�. Franco Park adjoins Prometheus' ���r?�����r� ���rtrr��r���, on the corner of Homestead Road. At a little over a half acre, the park has been nearly three years in the making and was developed along with the addition of 116 residential units at Markham Apartments. Named in memory of PW Market owner Joey Franco, Franco Park features a modern play structure and manicured lawns. Cupertino Mayor Gilbert Wong performed the ribbon cutting ceremony January 22, under sunny skies with children standing by ready to play in the new park. "Cupertina is very famous for its schools and Apple Computer for high-tech," said Wong. "The quality of life is also very important in the community. You can have gaod jobs, good schools, but you need amenities, like libraries and parks. This is a great partnership that we can work together with a private campany like Prometheus and the city to build a public park," said Wong. "Franco Park is an excellent example of how a public private partnership can result in an absolute win win for everyone--for the City, aur residents at i��rk}h��� ����?������ and the greater community of ci#izens in Cupertino," said Executive Vice President, Jonathan Moss. "We are grateful to the City of Cupertino far its collaborative efforts in creating a very special place for generations to come."