Director's Report
CITY OF CUPERTINO
10300 TORRE AVENUE, CUPERTINO, CALIFORNIA 95014
DEPARTMENT OF COMMUNITY DEVELOPMENT
Subject: Report of the Community Development DirectoB:::-,J-...._
Planning Commission Agenda Date: Tuesday, August 8, 2006
The City Council met on July 18, 2006, and discussed the following items of interest to the
Planning Commission:
1. Consider Timothy Reeves (Public Storage), 20565 Valley Green Drive: The City
Council approved use permit, architectural & site approval and the negative
declaration with the following conditions: (see attached report)
o Update the project approval allowing construction of 155,250 square feet, 3 and
4 story mini-storage facility per the revised exhibits with the 45 foot max height
building elevations, including lowering the building height on Building B to
accommodate the decorative arch within the 45 foot height limit;
o Require Building C to be additionally set back or reduced in height to one story
facing Valley Green Drive apartments;
o Reduce the allocation requirement from 101,300 square feet to 10,000 square
feet;
o Security signage & phone number must be posted on site;
o A copy of the lease contract to the City Attorney;
o Security plan to be approved by the Director of Community Development;
o Add additional Public Works requirements including street improvements,
improvement agreement, storm water pollution prevention best management
practices, as stated in the staff report;
o Require a public access easement connecting the new mini-park and pedestrian
trail to the Oak Park Village pedestrian access;
o Add benches to the pedestrian pathway and vines to grow along trellises
attached or adjacent to the building to soften the exposed flat wall areas;
o Require a double row of trees along the pedestrian trail with tree types that
provide canopy coverage;
o Hourly patrol while open; and
o Added architectural details and lighting to be reviewed by the Design Review
Committee.
2. Authorize Mayor Lowenthal to comment on a Draft Supplemental Environmental
Impact Report (EIR) on the proposed Kaiser Permanente Santa-Clara Medical
Center Hospital Heliport Project: Mayor Lowenthal will forward a letter to the City
of Santa Clara addressing the environmental impacts of the helicopter pad planned at
the Kaiser Hospital facility at the corner of Lawrence Expressway and Homestead
Road in Santa Clara.
Dl e,- J
Report of the Community Development Director
Tuesday, July 25, 2006
Page 2
MISCELLANEOUS
1. Retail Planning Principles Seminar: I attended a seminar sponsored by the Graduate
School of Design at Harvard University in Cambridge, Mass. on Monday, July 10 - 13,
2006. The three-day seminar focused on retail planning principles for cities and
commercial centers. The class brought together national experts, architects, developers
and planners. I will prepare summary notes for distribution at a later date.
2. Planners Institute: The 2007 Planners Institute will be held in San Diego on March 21-
23, 2007. So, mark your calendars now if you plan on attending.
3. Liz Ellis: I recently learned that the son of our recording secretary Liz Ellis passed
away. I am not aware of the circumstances of his death. Planning staff sent a card of
condolence to her.
4. Development Activity: Please note the following construction/ development activity:
. Rockwell Homes 15 unit town home site on Stevens Canyon Road is construction
fenced and site demolition should begin soon.
. California Pizza Kitchen and Islands are in for building permits.
. Menlo Equities buildings. are almost completely painted and the sidewalk has been
relocated in between the double tree row along Stevens Creek Boulevard.
. Penny's parking garage and retail shops in front are under construction.
. Chuck E. Cheese in the Portal Plaza Shopping center is completing their tenant
improvements.
. Wolf Camera town homes on Wildflower Way and South De Anza Boulevard are
under construction.
. Oak Park (former Santa Barbara Grill) concrete podium has been poured and
vertical construction should begin shortly.
. Adobe Lounge concrete podium has been poured and vertical construction should
begin shortly.
. Peng mixed-use buildings on Orange Avenue in Monta Vista are under
construction.
. Six single-family homes on Homestead are under construction.
. Pete's Coffee on Homestead Road near Foothill Expressway is open.
. Wells Fargo Bank and Starbucks on Homestead Road near Foothill Expressway is
nearing completion.
Enclosures:
Staff Reports
Newspaper Articles
G: \ Planning \ SteveP \ Director' 5 Report \ 2006 \ pd07-25-06.doc
D \ e -.,.7
City of Cupertino
10300 Torre Avenue
Cupertino, CA 95014
(408) 777-3308
Fax: (408) 777-3333
CUPEI\fINO
Community Development
Department
Summary
./
Agenda Item No. b
Agenda Date: Tuly 18, 2006
Application: U-2006-03, ASA-2006-05, EA-2006-06
Applicant: Timothy Reeves, on behalf of Public Storage
Owner: Public Storage, Inc.
Location: 20565 Valley Green Drive, APN 326-10-044
Application Summary:
. USE PERMIT AND ARCHITECTURAL & SITE APPROVAL to demolish an
existing 53,890 square foot, single-story storage facility and construct a 164,841
square foot, four-story storage facility.
. ENVIRONMENTAL DETERMINATION: Negative Declaration recommended.
The project will have no significant, adverse environmental impacts with the
proposed mitigation measures.
RECOMMENDATION:
The Planning Commission recommended the following to the City Council based upon
the previous development proposal for a 155,253 square foot, three-story storage
facility:
1. Approve the Negative declaration, file number EA-2006-06.
2. Approve the Use permit application, file number U-2006-03, in accordance with
Resolution No. 6387.
3. Approve the Architectural and site approval, file no. ASA-2006-05, in accordance
with Resolution No. 6388.
Project Data:
General Plan Designation:
Zoning Designation:
Specific Plan:
Site Area:
Industrial / Residential
P (CG, ML, Res 4-10)
North De Anza Boulevard Special Center
130,469 square feet (2.99 acres)
. VI~::)
Applications: U-2006-03, ASA-2006-05, EA-2006-06
Public Storage
Page 2
July 18, 2006
Existing Building SF:
Proposed Building SF:
Total Building SF:
Net Addition:
Building Coverage:
Floor Area Ratio:
Building Height:
Required Parking:
Provided Parking:
Hours of Operation (Storage):
Hours of Operation (Office):
Total Employees:
Employees at anyone time:
53,890 square feet (to be demolished)
Building A: 46,700 square feet
Building B: 68,640 square feet
Building c: 49,501 square feet
164,841 square feet
110,951 square feet
35.7%
1.24
53 ft. 8 in. (exceeds 45 ft. max. height allowed)
N/A
68 spaces
6:00 a.m. - 9:00 p.m. (same as existing hours)
9:00 a.m. - 5:00 p.m. (same as existing hours)
5 employees
2 employees
Environmental Assessment: Negative Declaration
BACKGROUND
At the May 16, 2006 meeting, the City Council considered an application by Public
Storage to demolish its existing one-story storage facility located off of Valley Green
Drive and construct a new storage facility consisting of two three-story buildings
totaling 155,253 square feet.
On a 4-0 vote (Council member Mahoney was absent), the City Council discussed and
continued this item, directing Public Storage to revise its plans based upon the
Council's comments.
Since the May 16th meeting, the applicant has redesigned the project. Public Storage
conducted neighborhood meetings on June 15th and June 29th inviting Apple, Pinn
Brothers, and residents of the Valley Green Drive apartment complex and the single-
family residential neighborhood on Acadia Court to discuss their project. Notices were
sent out to each individual resident of the Valley Green Drive apartment complex.
No residents or property owners attended the June 15th meeting; however, one resident
did attend the June 29th meeting. The resident expressed concerns about possible
additional traffic on Valley Green Drive on nights when the nearby restaurants are
busy. However, he generally expressed support for the project.
"Pl~/4
Applications: U-2006-03, ASA-2006-05, EA-2006-06
Public Storage
Page 3
July 18, 2006
For tonight's meeting, the City provided a half-mile radius noticing for the project.
Additionally, individual notices were sent to each resident of the Valley Green Drive
Apartment complex, in addition to the property owner of the apartment complex.
DISCUSSION
The following is a matrix indicating the City Council's directions from the May 16th
meeting, the applicant's subsequent responses and staff's responses upon review of the
revised plans:
City Council Direction Aoolicant's Resoonse Compliance/Staff's Comments
Applicant should meet with Apple, Pinn Neighborhood meetings were held on Applicant complied with Council's direction
Bros. and adjacent Valley Green Apartment June 15 and June 29.
residents
City should provide wider public noticing N/A City sent half-mile radius notices and included all
area for next meeting, including all Valley Valley Green Dr. Apartment residents
Green Dr. Apartment residents
Reduce building height or increase Building setback from Pinn Bros. Applicant has not complied with Council's direction
setbacks from the adjacent residential uses; condo site is increased from 39 ft to regarding reduction of building height or increased
Max. 45 ft height is acceptable. 60 ft from shared driveway access; setbacks from adjacent residential uses, except for
Building setback from Valley Green increased setbacks from Pinn Bros. condos.
Dr. Apt. complex is reduced from 50
ft to 25 ft. Height increase above 45 ft exceeds General Plan
height limitation; A General Plan Amendment is
Height is increased by 10.5 ft from required to exceed the height limitation.
43 ft to 53.5 ft. Alternative
elevations indicate a 2 ft. height Staff recommends that Building C be set back and/or
increase from 43 ft to 45 ft. reduced in height to address Council's direction and
that the alternative elevations be considered, keeping
the max. height to 45 ft.
Construct 3 buildings shorter in length Three buildings are now proposed; Proposal of three buildings complies with Council's
rather than 2 longer buildings building length is shortened from 370 direction.
ft. to 245 ft.
Provide attractive architectural Buildings have been designed to Staff believes that project has been enhanced with
enhancements and address visibility match existing Pinn Bros. condo large two story glass features at the entrances to the
impacts development. Photo simulations buildings and architectural elements to match the
have been submitted to show adjacent Pinn Bros. condos. Photo simulations show
visibility impacts of site. limited visibility of buildings due to surrounding
landscaping.
Incorporate trail access through property New pedestrian "trail" access has Staff believes that objective of "trail" ,access is
been provided along south perimeter achieved with the pedestrian walkway along southern
of property. perimeter. Staff recommends a condition that a
public access easement be required that links the Oak
Park Village public access to the 60 ft wide mini-
park at the entryway and to the pedestrian trail access
along the southern perimeter of the site.
Provide additional landscaping on site. Landscaping is increased from 24% Staff believes that the additional landscaping fulfills
to 30% coverage. Additional trees Council's direction with the double row of trees.
and landscaping are added on the Staff recommends that trees be planted which provide
east, north and south sides of the site. canopy coverage over the pedestrian trail along the
Also, a new mini-park and trail southern perimeter ofthe site.
access are included.
The loss of office allocation to Applicant maintains project is a Staff recommends reducing the building square
accommodate this use is of concern. public benefit. Square footage has footage allocation for this project based on a parking
been increased from 155,000 to demand or trip generation ratio of a storage facility as
164,000 sf. compared to a conventional office use.
Remove the in-lieu fee N/A Staff recommends removing the condition for an in-
lieu fee
1)1125
Applications: U-2006-03, ASA-2006-05, EA-2006-06
Public Storage
Page 4
July 18, 2006
Attached to the report (See Exhibit A) are some comments from Council member
Sandoval. These comments include recommendations to architecturally enhance the
buildings and provide sufficient landscaping on site. In particular, a recommendation is
made to green-screen the buildings, allowing landscaping to grow and cover the walls
of the buildings.
Revised Site and Architectural Plans
The revised plans propose consh'uction of three buildings, two that are four stories and
one that is three stories, totaling 164,841 square feet. Building A, the building to the
east, is proposed to be a 46,700 square foot, four-story building. Building B, the middle
building, is proposed to be a 68,640 square foot, four-story building. Building C, the
building to the west, is a 49,501 square foot, three-story building. The maximum length
of the newly revised buildings is 245 feet. The previous plans proposed a maximum
building length of 370 feet for each building.
The entrance to the site has been modified by moving the driveway to the southern
perimeter of the site. Currently, the driveway entrance is located along the northern
perimeter of the site and is hidden behind the existing storage buildings. This allows the
front building facades and entrances of the storage buildings, which are the more
architecturally enhanced elevations of the buildings, to face the existing Apple office
buildings to the south, making the buildings more publicly visible. However, this also
brings the buildings closer to the freeway than previously proposed. The setback along
the northern property line is reduced from 60 feet to 13 feet.
The maximum height of the new buildings is 58 feet 4 inches, which exceeds the
maximum height limitation of 45 feet for buildings in this area per the General Plan.
The General Plan only allows height limitations to be exceeded for rooftop mechanical
equipment and utility structures. To consider this additional height, a determination
could not be made on this project tonight until an application for a General Plan
Amendment is submitted and subsequently approved by the City Council.
The applicant explained that the additional height above 45 feet provides for
architectural relief and articulations to match the adjacent Pinn Brothers condominium
project and serves to screen roof top equipment.
An alternative plan (See Plan Set) has been provided that brings the building height
down to 45 feet. This will require roof screens for roof top equipment that will exceed
the 45-foot building height, but will allow the buildings to be consistent with the
General Plan.
Public Storage indicates that they have added the fourth floors to accommodate the loss
of storage units they would have had with the longer buildings per the previous plans
and to make the project financially feasible. This addition also results in a total square
footage increase of 9,600 square feet to the project.
1)(1210
Applications: U-2006-03, ASA-2006-05, EA-2006-06
Public Storage
Page 5
July 18, 2006
Landscaping/ Trail Access
The site plan indicates the incorporation of additional landscaping. The revised
landscape plan provides 30% landscape coverage. A new 60 foot wide landscaped
pedestrian mini-park has been added along the eastern front entryway to enhance and
soften the visual impact of the new storage buildings and provide an additional buffer
area between the storage buildings and the Pinn Brothers condominium project.
Further, a landscaped pedestrian pathway along the southern perimeter of the site has
been added to create a "trail" access along the entire length of the site. The pedestrian
pathway will be enhanced by the existing trees adjacent to the parking lot on the Apple
office side of the property and with the addition of a significant number of Red Maple
trees, shrubs and groundcover on the Public Storage side of the property. Staff believes
that this new pedestrian pathway will serve as a sufficient "trail" access through the
property, meeting the objectives of a trail access as previously recommended by staff.
Staff, however, recommends that the applicant be required to record a public access
easement on the mini-park and the pedestrian trail that connects to the public access
provided on the Oak Park Village condominium site. Additionally, staff recommends
that benches be provided within the lat;ldscaped pedestrian pathway to enhance use of
the pathway, and that clinging vines be added along the new wrought iron fencing to
be installed along the southern perimeter of the site to soften the visual impact of the
buildings. Further, staff recommends that the trees be planted in double rows and that
the trees be of a type that provides canopy coverage over the walkway.
The northern and western perimeters of the site will also be enhanced by additional
landscaping. The conceptual landscape plan shows that 15 gallon Red Maple trees will
be planted along the northern and western property lines.
Development Allocation
The proposed project as a storage facility is a semi-industrial use; therefore, the
allocation comes from the available office/industrial development allocation of the N.
De Anza Boulevard Employment Center area.
Staff is concerned about the limited development allocation that will be available in the
N. De Anza Boulevard area if the 110,951 square feet of net new building area of this
proposed project is deducted from the available office/ industrial development
allocation. The current available office/ industrial allocation is 218,185 square feet. With
the allocation deduction of the Public Storage project and the forthcoming Any
Mountain project, the availability for future office/industrial developments in the area
will be substantially reduced.
1) 112,1
Applications: U-2006-03, ASA-2006-05, EA-2006-06
Public Storage
Page 6
July 18, 2006
Currently Available Allocation:
Minus Public Storage Allocation:
Remaining after Public Storage:
Minus Any Mountain:
Remaining after both projects:
218,185 sf
-110,951 sf
107,234 sf
- 33,000 sf
74,234 sf
To offset this impact on the available office allocation and to more accurately reflect the
limited amount of traffic and employees this project will generate, staff recommends
that the City Council consider reducing the building square footage allocation for this
project based on a parking demand or trip generation ratio of a storage facility as
compared to a conventional office use. Staff will provide details on these options at the
meeting.
Letter from Pinn Brothers
The City received an email from Greg Pinn (See Exhibit D) on July 11, 2006 stating that
Pinn Brothers supports the revised storage facility plqns and that their initial concerns
have been addressed. Pinn Brothers also indicated that they support the passive park
to be added on the east side of the site and the new pedestrian" trail" access.
Environmental Determination
The Environmental Review Committee reviewed this project on April 12, 2006 and
recommended approval of the negative declaration based upon consideration of the
previous plans as a two-building, 155,253 square foot storage facility. Although the
project has been revised and has slightly increased its square footage by 9,600 square
feet, staff believes that there are no substantial environmental differences between the
previous plans and the newly proposed plans.
Staff Recommendation
Staff recommends that the City Council approve the Use Permit, Architectural and Site
Approval, and Negative Declaration in accordance with Planning Commission
Resolution Nos. 6387 and 6388 with the following additional revisions and additional
conditions:
1. Update the project approval to allow demolition of the existing storage facility
and construction of a new 164,841 square foot storage facility, consisting of one
three-story building and two four-story buildings, with 68 parking spaces.
2. Approve the alternative version (See Plan Set) of the elevations and require
compliance with the maximum 45-foot height limitation per the General Plan.
3. Require that Building C be set back or reduced in height along the west side of
the building facing the adjacent Valley Green Drive apartment complex.
4. Consider reducing the building square footage allocation for this project based
upon a parking demand or trip generation ratio of a storage facility.
DU2 ~
Applications: U-2006-03, ASA-2006-05, EA-2006-06
Public Storage
Page 7
July 18, 2006
5. Require a public access easement connecting the new mini-park at the eastern
entryway to the site and new pedestrian trail along the southern perimeter of the
property to the Oak Park Village pedestrian access.
6. Add benches in the pedestrian pathway to be created along the southern
perimeter of the site.
7. Require that a double row of trees be provided within the pedestrian "trail"
walkway along the southern perimeter of the site. Trees shall be of a type that
will provide canopy cover over the trail walkway.
8. Plant clinging vines along the wrought iron fencing to be constructed along the
southern perimeter of the site.
9. Remove the condition requiring the in-lieu fee.
10. Add the following additional Public Works Department conditions:
a. Street Widening
Street widening, improvements and dedications shall be provided in
accordance with City Standards and specifications and as required by the
City Engineer.
b. Curb and Gutter Improvements
Curbs and gutters, sidewalks and related structures shall be installed in
accordance with grades and standards as specified by the City Engineer.
c. Street Lighting Installation
Street lighting shall be installed and shall be as approved by the City
Engineer. Lighting fixtures shall be positioned so as to preclude glare and
other forms of visual interference to adjoining properties, and shall be no
higher than the maximum height permitted by the zone in which the site
is located.
d. Traffic Signs
Traffic control signs shall be placed at locations specified by the City.
e. Street Trees
Street trees shall be planted within the Public Right of Way and shall be of
a type approved by the City in accordance with Ordinance No. 125.
f. Grading
Grading shall be as approved and required by the City Engineer in
accordance with Chapter 16.08 of the Cupertino Municipal Code. 401
Certifications and 404 permits maybe required. Please contact Army Corp
of Engineers and/or Regional Water Quality Control Board as
appropriate.
g. Drainage
Drainage shall be provided to the satisfaction of the City Engineer.
Pre and Post-development calculations must be provided to identify if
storm drain facilities need to be constructed or renovated.
h. Fire Protection
Fire sprinklers shall be installed in any new construction to the approval
of the City.
1. Underground Utilities
)) I ({ .--q
Applications: U-2006-03, ASA-2006-05, EA-2006-06
Public Storage
Page 8
July 18, 2006
The developer shall comply with the requirements of the Underground
Utilities Ordinance No. 331 and other related Ordinances and regulations
of the City of Cupertino, and shall coordinate with affected utility
providers for installation of underground utility devices. Ordinance No.
331 requires all overhead lines to be underground whether the lines are
new or existing. The developer shall submit detailed plans showing utility
underground provisions. Said plans shall be subject to prior approval of
the affected Utility provider and the City Engineer.
J. NPDES Construction General Permit
The applicant must file for a NOI (Notice of Intent) and must prepare a
Stonn. Water pollution Prevention Plan with the State Water Resources
Control Board. The city must obtain documentation that the process has
been completed.
For copies of the Consh"uction General Permit, the NOI and additional
permit information consult the state Water Resources Control Board web
site at:
http:/www.swrcb.ca.gov/stormwtr/construction.htm
k. Amended Develo ment Best Mana ement Practices BMP Re uirements
i. Permanent Stormwater Quality EMPs Required
In accordance with chapter 9.18, Stormwater pollution Prevention and
Watershed Protection, of the City Code, all development and redevelopment
projects shall include permanent EMPs in order to reduce the water quality
impacts of stormwater runoff from the entire site for the life of the project.
ii. Stormwater Management Plan Required
The applicant shall submit a Stormwater Management Plan for this project.
The permanent storm water quality best management practices (EMPs)
included in this plan shall be selected and designed in accordance with chapter
9.18, Stormwater pollution Prevention and Watershed Protection, of the City
Code.
iii. EMP Agreements
The applicant and the City shall enter into a recorded agreement and covenant
running with the land for perpetual EMP maintenance by the property
owners(s). In addition, the owner(s) and the City shall enter into a recorded
easement agreement and covenant running with the land allowing City access
at the site for EMP inspection.
iv. Hydromodification Plan (HMP) Required
The applicant must provide a comprehensive plan to control any combination
of on-site, off-site and in-stream control measures incorporated into specific
redevelopment projects in order to reduce stormwater runoff so as to not
increase the erosion potential of the receiving watercourse over the pre-project
condition.
"D , f'2 -1 0
Applications: U-2006-03, ASA-2006-05, EA-2006-06
Public Storage
Page 9
July 18, 2006
1. Improvement Agreement
The project developer shall enter into a development agreement with the
City of Cupertino providing for payment of fees, including but not limited
to checking and inspection fees, storm drain fees, park dedication fees and
fees for undergrounding of utilities. Said agreement shall be executed
prior to issuance of construction permits.
Fees:
a. Improvements Permit: $3,540 rmn or 6% of Off-site
Improvement Costs
b. Grading Permit: $ 2,060 min or. 6 % of On-site Improvement
Costs
c. Development Maintenance Deposit: $1,000.00
d. Storm Drainage Fee: $4,013.40
e. Power Cost: N / A
f. Map Checking Fees: N/ A
g. Park Fees: N / A
Bonds:
a. On & Off-Site Improvements Bond: 100% Labor/Material Bond,
100% Performance Bond
-The fees described above are imposed based upon the current fee
schedule adopted by the City Council. However, the fees imposed herein
may be modified at the time of recordation of a final map or issuance of a
building permit in the event of said change or changes, the fees changed at
that time will reflect the then current fee schedule.
** Developer is required to pay for one-year power cost for streetlights
ENCLOSURES
Planning Commission Resolutions Nos. 6387 and 6388
Exhibit A: Council member Sandoval's comments
Exhibit B: City Council Report of May 16, 2006, with attachments
Exhibit C: City Council Minutes of May 16, 2006
Exhibit D: Letter from Pinn Brothers dated July 11, 2006
Plan Set, including Alternative Elevations
Prepared by: Aki Honda, Senior Planner
Submitted by:
Approved by:
W
David W. Knapp
City Manager
Steve Piasecki
Director, Community Development
P lk>..t1
City of Cupertino
10300 Torre Avenue
Cupertino, CA 95014
(408) 777-3308
Fax: (408) 777-3333
CUPEIQ"INO
Community Development
Department
Summary
Agenda Item No. /7
Agenda Date: July 18, 2006
APPLICATION SUMMARY: Authorize Mayor Lowenthal to comment on a Draft
Supplemental Environmental Impact Report on the proposed Kaiser Permanente Santa
Clara Medical Center Hospital Heliport Project.
BACKGROUND:
Kaiser Permanente is proposing to develop a heliport at its Santa Clara medical center
located at the southwest corner of Lawrence Expressway and Homestead Road. The
project requires a use permit from the City of Santa Clara to allow for the construction
and operation of a state-permitted hospital heliport for emergency air ambulance
flights.
Since the 1995 final environmental impact report addressing the physical impacts of
buildout of the hospital did not include the proposed heliport, the City of Santa Clara
required the preparation of a supplement EIR. The ErR process provides for public
noticing and review by the public and affected agencies. The comment deadline is July
31, 2006.
DISCUSSION:
Under the proposed project 3-4 helicopter flights per year are expected in the near term
and an average of approximately 15 evacuation flights per year in the future.
The SEIR identifies a noise zone (92 SEL Noise Contour) helicopter flight path. Within
this zone, sleep disturbance is likely during nighttime flights. The noise zone affects the
hospital and primarily the surrounding residential neighborhoods in Santa Clara. A
portion of Cupertino is in this noise zone, which is the southeast quadrant of Tantau
Avenue and Homestead Road. This area is currently developed with light
industrial/ office buildings and vacant land, but the Planning Commission is studying
this area for potential residential redevelopment as part of its North Vallco Master Plan
process.
According to the SEIR, the worst case scenario would be that all 15 helicopter flights per
year would occur at night, instead of randomly, and would disturb sleep of nearby
residents. This is considered a significant and unmitigable environmental impact.
P l,;2. '-/~
Kaiser Permanente Santa Clara Medical Center Hospital Heliport Project
Page 2
The helicopter noise levels cannot be mitigated, only lessen in frequency by lessening
the number of flights.
Staff recommends that all of the noise mitigation measures identified in the SIER be
incorporated into the city use permit. This would include:
1. Limiting helicopter flights to only evacuations of critically ill patients where time
is of the essence.
2. Not allowing a trauma center at this Kaiser medical center. Trauma services
. would attract air transportation flights to the hospital from a regional
population.
3. Establish a program of monitoring helicopter operations with annual reporting
to the City of Santa Clara.
4. Inform all helicopter pilots of primary approach and departure paths.
5. Have the applicant appoint a Helipad Noise Disturbance Coordinator
responsible for responding to any local helicopter noise complaints, compiling
annual noise reports and communicating with local agencies that may receive
noise complaints I inquires.
Enclosures
Exhibit A: Draft Mayor's Letter
Prepared by: Colin Jung, Senior Planner
Submitted by:
Approved by:
.-' .J &J '
~-.:.) U"L..-8 f.Z/~:a--e." /0 ~.
J ..c/ '/ C-{...u
Steve Piasecki
Director, Community Development
j15(
David W. Knapp
City Manager
G: \ Planning \ PDREPORT\ CC\ 2006\ Kaiser Permanente, July 18, 2006.doc
Pfe ~13
THE NEW YORK TIMES, TUESDAY, JULY 11, 2006
IT
C3
Hewlett-Packard Slows Pace After Fast Start in Consulti.ng
By DAMON DARLIN
PALO ALTO, Calif. - Hewlett-Packard
made a splashy entrance Into the big
leagues of business consulting when It land-.
ed a $3 billion outsourcing contract In 2003
to run all of Procter & Gamble's informa-
tion technology.
But It has not made many waves since
Mark V. Hurd became the chief executive
more than a year ago.
"It was like the dog who finally caught
the bus:' said Julie Giera, a vice president
with Forrester Research who tracks the in-
formation technology consulting business.
"Now what?"-
For the last half year, HP Services, the
company's $16 billion consulting and serv-
ices business, has answered that question
with declining revenue. The division has .
been one of the company's few laggards,
while the divisions that sell printers and
computers have reported strong Increases
In revenue and profit.
The reason for the slowdown, said Steve
Smith, the company's senior vice president
for services, is pretty simple and totally In-
ltentional. "All the Tinkertoys we had In the
company were not being leveraged," he
sald
Mr. Hurd told Mr. Smith and his lieuten-
ants to throttle back growth untli they
could start bringing In more profitable rev-
enue. How they are doing that says a lot
about how Mr. Hurd is changing the giant
technology company and how he intends to
get more growth out of It.
Mr. Hurd wants Hewlett-Packard, which
reported $86.7 billion In revenue last year
but only $2.4 billion In net profit, to grow
three ways, which it can do even faster
with the help of the company's business
consultants.
. First, he wants Hewlett-Packard to sell
more notebook and hand-held computers to
corporate customers. That Is an easy one
for its team of consultants, who analyze
how a customer uses technology and how
Hewlett-Packard could potentially im-
prove things.
Second, he wants to sell more printers
and printing services. The Imaging and
printing division has been doing well in
those areas as it extends Hewlett-Pack-
ard's reach Into copiers and commercial
printing.
The company could sell even more by
winning contracts to manage a company's
printing just as It manages computers or
data storage. Because printing Is dIstrIbut-
ed around a workplace, the costs are huge,
hidden and largely unmanaged. Companies
spend as much as 3 percent of their reve-
nue on printing, faxing and imaging, said
Hewlett.Packard executives, but rarely re-
alize that they are doing so.
In this new area, Hewlett-Packard faces
Xerox, a reborn and strong competitor, and
Dell, Its longtime rival In the PC business,
which recently won a major printing serv-
ices contract from Boeing.
Mr. Hurd's third engine of growth Is a
new one: the next-generation data center.
It is a computer room running with few
workers because Hewlett-Packard soft-
ware on the company's machines auto-
mates most of the process. The company's
consultants would design, sell and run
these centers.
The clients would save money because
the data centers are efficient, using less
power and fewer people, Hewlett-Packard
says. And It is betting that those companies
will spend some of their savings on new
equipment - like the computers, servers,
storage devices and printers that it makes.
For all this to work, It needs to win invi-
tations from' major companies to fix their
technology Infrastructure. It has to get big-
ger or act bigger. Hewlett-Packard's serv-
ices business Is In fourth place, behind
I.B.M., which has revenue of $46.4 billion;
Noah Berger for The New York Times
Steve Smith of Hewlett-P~ckard's service division is trying to improve its focus.
Weak Links In the Chain
Sales at most of Hewletl-Packard's business units increased in the first six
months of its fiscal year. The exceptions were its services divisions.
SALES, FIRST
SIX MONTHS
OF FISCAL '06,
IN BILLIONS
CHANGE IN SALES
FROM YEAR EARLIER
Financial services
Corporate investments
-
+ 6.5 .
- 7.7_
+ 5.5 .
Source: Hewlett-Packard
The New York Times
Electronic Data Systems, with $20.1 bil-
lion; and Accenture, with $16,1 billion.
The ranking inflates Hewlett-Packard's
strength because it includes what are
called "break-fix" deals - maintaining
equipment and running help desks. The
company does well in that segment, but
lags where the high-profit revenue is made,
in consulting and outsourcing.
Pulling out all the stops to win the Proc-
ter & Gamble contract made sense for HP
Services. "They aren't that big, and they
struggled to put themselves on the map,"
said A. M. Sacconaghi Jr., a senior re-
search analyst who follows Hewlett-Pack-
ard for Sanford C. Bernstein & Company.
It got on the map, but at what price? "Big
deals are hard to manage:' Mr. Sacconaghi
said, and digesting a large number of deals
can hurt earnings. "They were overly ag-
gressive on the top-line growth a~ the ex-
pense of profitability."
Company executives would not discuss
the profitability of individual deals, though
they pointed out that multiyear contracts
were rarely profitable In the early stages
as the vendor learned where the problems
were and Invented solutions.
Ann M. Livermore, the executive vice
president for Technology Solutions Group,
which Includes HP Services, sald, "I would
absolutely do that deal agaIn."
Procter & Gamble sald it was going well,
"We've had our challenges:' sald Linda
Clement-Holmes, the company's general
manager of Infrastructure services and
governance. "We suspected we would. It's
been a learning curve for both of us." (One
result of the relationship: P.& G. puts print-
Ing on its Pringies potato chips with Hew-
lett-Packard's printing technology.)
Ms. Livermore says she thinks the unit is
on the right track. "While we are not satis-
fied with the performance of our unit, we
are satisfied with the progress:' she sald.
"The challenge is how to price the projects
to win them and still generate returns."
Rather than chasing everything, Ms. liv-
ermore and Mr. Smith are looking at small-
er deals. That allows HP Services to use the
skills it has setting up data centers around
the world and automating the management
of software used by its clients. It is focusing
on global companies doing business In Asia,
where analysts estimate the services divi-
sion already has about a third of Its person-
nel. That way, the company estimates, as It
adds another dollar of new business, it does
not have to add 60 cents of cost, but maybe
30 cents or 40 cents.
The mistake the company made, Mr.
Smith sald, was in taking on too many
large, unique projects. "To get cost-effl-
cient, we have to do 75 percent standard
and 25 percent custom," said Mr. Smith, a
former executive at Electronic Data Sys-
tems. "Before, we were doing too many
one-offs, We wanted to slow it down."
HP Services focused on technology infra-
structure, data centers, printing and busi-
ness processes for finance and administra-
tion. When customers complaIned that they.
were seeing too many Hewlett-Packard
sales representatives and consultants, the
company made sure a designated team
made the visits each time.
Focusing on the smaller deals could be a
winning strategy. The research firm IDC
estimates that consultants will be bidding
on $127 billion In large information technol-
ogy deals In 2007 and 2008. Unlike the first
generation of outsourcing and consulting
contracts,. these will most likely be shared
by a number of vendors as the companies
try to maintaIn the balance of power.
One recent example of this trend was the
contracts awarded by General Motors In
February. Over all, the contract was large,
$5.1 billion. E.D.S., the Incumbent, retained
85 percent of its business, but Hewlett-
Packard got $700 million for networking
G.M. dealers and providing technology for
the product development and manufactur-
Ing quality operations.
"We are really pleased with what we
got," Ms. Livermore said. "We like when it
is segmented."
Ms, Livermore s aid she was looking for
revenue growth of 4 percent to 6 percent a
year for HP Services, and operating profit
of 8 percent to 10 percent. While revenue
for the unit was down In the quarter that
ended April 30, the operating profit margin
almost hit 9 percent as profits rose 18 per-
cent.
For now, analysts are waiting to see the
result of Hewlett's changes. "We see HP
Services clearly as a work In progress,"
said Robert Welch, an industry analyst at
IDC. "I don't see the roster of players shift-
Ing at the top, and I don't see anyone drop-
ping off the list."
Cindy Shaw, a securities analyst with
Moors & Cabot, said: "They need to keep
doing what they are doing. They have the
right plan."
Plt:,,~
BOARD MEMBER DIRECTORY
Director
Hing Wong, AICP (510) 464-7966 hingw@abag.ca.gov
Director Elect
Juan Borrelli, AICP (408) 535-7709 juan.borrelli@sanjoseca.gov
Administrative Director
Michael Olin (415) 22.9-2812 molin@sf.wrtdesign.com
Treasurer
Jeff Baker (925) 833-6610
Immediate Past Director
Jeri Ram, AICP (925) 833-6617
jeff. baker@ci.dublin.ca.us
jeri. ram@ci.dublin.ca.us
Advertising Director
Marta Self, AICP (925) 988-9188
AICP Director
Don Bradley, AICP (650) 592-0915
Awards Program Directors
Alex Amoroso, AICP (510) 670-6503
Mark Rhoades, AICP (5101981-7411
Communications Director
Jerry Haag (510) 644-2106
Ethics Review Director
Hanson Hom, AICP (510) 577-3421
International Director
Rob Eastwood, AICP (408) 299-5792
mself@mms-inc.net
dr .donbradley@comcast.net
alex.amoroso@acgov.org
mrhaades@ci.berkeley.ca.us
jphaag@pacbell.net
hhom@ci.san-Ieandro.ca.us
rob .eastwood@pln.co.santa-
dara.ca.us
Legislative Director
Kit Faubion, AICP (510) 808-2000 kfaubion@meyersnave.com
Membership Director
Christopher Wolf, MPIA 14151 412-2672 membership@norcalapo.org
Planning Diversity Director
Michele Rodriguez, AICP (415) 269-6399 michele@boggis.com
Newsletter Editor
Naphtali Knox, FAICP (415) 699-7333 knoxnaph@gmail.com
Professional Development Director
Darcy Kremin, AICP (925) 906-1460 dkremin@rbf.com
Student Representatives
Adam Binstock (619) 757-4677 adamkbinstock@msn.com
Maureen Hickey (415) 205-1339 mchickey@berkeley.edu
University Liaison
Connie Galambos (510) 444-3041 cgalambos@rprogress.org
Website Coordinatar
Pierce Macdonald (5101 459-6092 piercemac@hotmail.com
Regional Advisory Committees (RACs)
East Bay
Joanna Jansen
David Ralston
Monterey Bay
Michael Bethke, AICP (831) 425-5425 michael@slattcon.com
North Bay
ladd Miyasaki
Peninsula
Andrea Quse, AICP (650) 985-2590 aouse@mcaplanners.com
Redwood Coast
George Williamson, AICP (707) 825-8260 georgew@
planwestpartners.com
(510) 848-3815 joanna@dceplanning.com
(510) 238-2970 dralston@oaklandnet.com
(707) 935-3145 schellcreekfuyu@comcasl.net
San Francisco
Kenya Wheeler, A1CP (510) 287-4782 fwheele@bart.gov
South Bay
open
Newsletter Designer
Juliana Pennington (415) 824-4375 design@famsf.org
specializing in visuals for the planning and design professions
!D~ Juliana Pennington
, Graphic Design
Technical Illustration
Communicotions Design
Exhibit Planning & Design
2 Northern News
ver 120 planners, architects, builders, and elected officials attended
e glamorous Nonhern Section Awards Banquet at Scott's Seafood in
Jack London Square on June 9, making it the largest awards ceremony
gathering the Section has ever held. (See page 3.) Founeen awards and
honorable mentions were presented in an evening that concluded with
recognizing our four most recent FAICP inductees. Awards Program
Directors, Alex Amoroso, AICP, and Mark Rhoades, AICP, put on a
fabulous event with the generous assistance
of Mika reg d
arity Wagner. The awards jury, consist-
ing of Natalie Macris, Ladd Miyasaki, Steve
Piasecki, AICP, and Sonia Vrzua, AICP, had
the difficult but rewarding task of going
rough eve aw rd nomina . e ect-
ing.t e wmners. Congratulations to the
win~rs and thanks to everyone for putting
together an unforgettable event. Mark Rhodes and Alex Amoroso
Relax and enjoy each other's company at social mixers hosted by our
RACs this summer. The mixers give us an opportunity to meet you and
to find out what you desire from your local AP A. E-mails will be sent to
announce the dates and locations. Many attended the Berkeley social on
June 27 co-hosted by PMC at Beckett's Irish Pub. A San Francisco
mixer is scheduled at BOCA (Bar of Contemporary An) on Friday, July
21. (See calendar, back page.)
This year's CCAPA Conference will be held at the Hyatt Orange
County, October 22-25. The early registration deadline is August 15;
register online at www.calapa.org. Nonhern Section is again planning
to provide scholarships to help a limited number of students attend the
conference. Last year, we awarded three $150 scholarships for the
Yosemite conference. Information and sign-up details will be sent to
AP A student members.
Do you know of any good venues in the South Bay that we can use to
host the Opening Reception for the 2007 CCAP A Conference? The
facility would need to accommodate 900. Contact Juan Borrelli, AICP,
(408) 535-7709 or juan.borrelli@sanjoseca.gov
Would you like to give a session at the 2007 conference? Contact
Hanson Horn, AICP, (510) 577-3421 or hhom@ci.san-Ieandro.ca.us.
The next Conference Steering Committee meeting is Saturday, August
19, 10 AM at San Jose City Hall, 200 East Santa Clara Street. Everyone
is welcome to participate!
~
NEWSLETTER INFORMATION
ADDRESS CHANGES
EDITORIAL
Naphtali H. Knox, FAlCP
TEL: (415) 699-7333
ADVERTISING/JOBS
Marta Self, AlCP
TEL: (925) 988-9188
Membership Department
APA National.Hqtrs.
122 South Michigan Ave.
Ste.1600
Chicago, Il 60603-6107
312/431-9100
The deadline for submining materials for inclusion in the Northern News is the 16th day of the month !.2 t~b7:al~
printed on recycled paper *
e-mail: mself@mms-inc.net
South Carolina mall evolving into town center
The Peerless Development Group has
. begun converting a 40 percent vacant
shopping mall in Forest Acres, South
Carolina, into the core of a development
that may eventually contain a network I
of sh"eets and sidewalks, street-oriented
retail, a restored creek corridor, and
varied housing, including a retirement
community. Peerless intends to trans-
form the 1.5 million sq. ft. Richland Mall
into C\ mixed-use development called
Midtown at Forest Acres, using ideas
laid out in a charrette conducted by Op-
ticos Design of Berkeley, California, with
Allison Ramsey Architects of Asheville,
North Carolina.
"We're following the CNU publica-
tion Greyfields into Goldfields," says John
Perry, vice president for governmental
affairs of the development company
based in Spruce Pine, North Carolina.
Perry is familiar with New Urbanism,
having previously been town manager
of Port Royal, South Carolina, where
he worked with Miami architect Victor
Dover on a master plan that culminated
in the adoption of a traditional town
code.
The February 2005 charrette pro-
duced a plan that was estimated to take
five to eight years to carry out. The first
phase callea for running streets through
parts of the mall; creating new main
street frontage along an inner street;
developing housing in a street and block
pattern atop an existing parking garage;
constructing a mixed-use residential
block; forming a district containing a
hotel, additional retail, and a neighbor-
hood square; and building a civic center
that would include a city hall and an
arts facility.
STARTING WITH
THE DEAD ZONES
Retailers with leases allowing them
to continue operating in the 18-year-old
mall have limited Peerless's ability to
implement some of those ideas as fast as
the company would like. Consequently,
Perry has shifted toward concentrating
his initial construction on the mall's
"dead" sections, such as a department
store vacated by Dillard's. This summer
Peerless will begin building a three-
story, 120-unit condominium hotel in
the Dillard's space. The developer also
expects to start construction of two
buildings containing about 100 residen-
tial units in all.
Perry has discovered that the exist-
ing four-story garage cannot support
much of the housing that the charrette
envisioned. Thus, some of Midtown's
housing will consist of a pair of resi-
dential towers attached to the garage
but not dependent upon it for structural
support.
Perry expects the $300 million en-
deavor to include a retirement com-
munity seamlessly integrated into the
neighborhood. A neglected creek cor-
ridor is to be restored, becoming the
focal point of a new five-acre park. This
should provide an appealing creekside
setting for residential and commercial
frontage.
It is unclear whether Peerless will be
able to implement one of the charrette's
key planning recommendations: con-
struction of a city hall and arts facility at
a prominent intersection now occupied
by a gas station. "That corner was seen
as an important gateway to the site,"
says Stefan Pellegrini, senior designer
at Opticos. Peerless has acquired the
40-acre mall site, in a suburb of Co-
lumbia, the state capital, but has not
yet been able to purchase the station.
Further complicating the situation, the
government of the 10,600-person mu-
nicipality has not committed to moving
there. Nonetheless, Perry thinks that if
the station property can be acquired,
eventually a "public-purpose building,"
possibly including government offices
and a performing arts center; will be
constructed there.
Opticos worked on a master plan, a
phasing plan, and a form-based code,
which the municipality adopted. As
a result, Pellegrini says, local officials
have the legal power to insist that the
developer carry out crucial parts of the
concept. The architect now assigned to
the project is CJMW in Lexington, South
Carolina.
If completed, Midtown would be one
of the largest US mall conversions of its
kind. Similar projects include Belmar
in Lakewood, Colorado, and Eastgate
mall near Chattanooga. In the late 1990s,
Dover, Kohl & Partners drew up a plan
for turning Eastgate into a mixed-use
town center. But only part of the plan
_ converting some buildings to offices
and building a "town square" - was
carried out. Within the past year Freed-
The Richland Mall, right, is slated
to become a dense, mixed-use
urban center, below.
JUNE 2006
12
1J'~/to
Business
NUAi'tB\i:. U Ii'{II:.FIUli'l1
CLOSE CHANCE
Nasdaq A 2,043.22 +5.50 +0.3%
Dow Jones A 10.79923 +51:87 +0.5%
S&P 300 At.. 1,236.86 +2.37' +0.2%
MN 150 A 1.568.07 +7.13 +0.5%
Bonds* A 5.14% +0.07
Dollar A Y1l734 +0.16 +0.1%
IfEDNESDAV
N JOSE MERCURY NEWS
LV 19, 2006
w'Iuww.mercurYBlfi?Jws.comfbusiness
.....J......... o.JJ ......~..._~_. - ------- - ----,&.- - -.
"lO-year Treasury
F(
'^
w
[}[l
Gf
REPORT CARD ON
HOUSING SUPPLY
SANlA CLARA tOONl'!
~~
.~
'1
%l
I
~.'l...'
"I;.
:'.
,
l
~l
,
'1<
a
'!
'~
'\'
~.
.~
;'.
..~
~.m
~
i..'i
~NIEl\
Mtn. View
Palo I\.\to
San Jose
Santa Clara
SAN MATEO COUNTY
Gl'~
F
1\.+
I\.
0+
GRADE
F
C
F
A+
MERCURY NEWS IlLUSTRA nON
BAY AREA GETS A 'B', BUT SOME COUNTIES
ARE SLIDING OR FAILING TO MEET GOALS
By SUe McAllister
MeJ'C1"yNews
There are still fewer
homes being built in the
Bay Area than there are
people who want to live
here - and that imbal-
ance, which boosted prices
over the past decade,
shows no signs of abating.
When it comes to build-
ing their "fair share" of
new housing. Santa Clara
County gets a C-plus grade
and San Mateo County
gets a stinging F, a busi-
ness-oriented public policy
group concludes in a re-
port scheduled for release today.
"The housing crisis has continued, with-
out pause, through economic upturns and
downturns," wrote .Tun Wunderman, presi-
dent of the Bay Area Council, in the intro-
duction to the group's third "housing pro-
duction report card."
The shortage of building permits is part-
ly responsible for making Bay Area home
prices climb faster in the past 10 years than
those in similar metropolitan regions.
~/~)
COMING TOMORROW
Bay Area home sale
numbers for June. Check
www.mercurynews.com
for updates.
The nine-county Bay Area
earns a B grade in the sur-
vey, which compares the
number of housing permits
issued by local governments
to state-mandated goals for
producing enough new hous-
ing to keep up with projected
population and job growth.
Those goals are known as
cities' and counties' "fair
share" housing targets.
'Ib earn a C or higher, a city or county
must approve new housing equal to at least
73 percent of its goal. Those that got marks
of A or A-plus - including the Santa Clara
County towns of San Jose, Los Altos, Los
Altos Hills, Monte Sereno, Palo Alto and
Saratoga - issued enough permits to
reach at least 95 percent of their goals. .
See REPORT CARD, Page 2C
READING
THE REPORT
CARD
A report from the Bay
Area Council graded
cities and counties in the
Bay Area on how well or
poorly they did in
approving their "fair
share" of housing units as.
required by state law.
TIle charts show how
many building permits
for all types of housing
were issued from 1999
through 2005, along
with what portion of the
cities' housing goals were
met Complete charts for
Santa Clara and San
Mateo counties are on
Page 2C.
Grading scheme: 100%
or more = A+; 95-99% =
A; 90-94% = A.; 87-89%
= B+; 83-86% = B;
80-82% = B-; 77-79% =
C+; 73-76% = C; 70-72%
= C-; 67~69% = D+;
63-66% = 0; 60-62% =
D-; less than 60% = F. PI t2.. -I '7
SANTA CLARA COUNTY HOUSING NEEDS SAN MATEO COUNTY HOUSING NEEDS
A report from the Bay Area Council graded each city and county in the CITY OR AREA UNITS APPROVED % OF GOAL GRADE
Ba~ Area on how well or poorly they did in ~proving their "fair share" Atherton 102 64% D
of ousing units as required by state law an defined by the Association
of Bay Area Governments. The chart shows how many building permits Belmont 252 82% B-
for all types of housing were issued in Santa Clara and San Mateo Brisbane 65 16% F
counties from 1999 through 2005, along with what portion of each BurlinQame 255 47% F
city's housing goals were met.
CITY OR AREA UNITS APPROVED % OF GOAL GRADE Colma 84 117% A+
- Daly City 398 30% F
Campbell 479 64% D
Cupertino 1,188 45% F East Palo Alto 707 57% F
Gilroy 2,701 75% C Foster City 475 71% C-
Los Altos 418 166% A+ Half Moon Bay 335 76% C
Los Altos Hills 206 258% A+ HillsborouQh 127 157% A+
Los Gatos 377 97% A Menlo Park 179 19% F
Milpitas 1.265 30% F M ill brae 133 40% ~F
Monte Sereno 76 104% A+ Pacifica 181 28% F
MorQan Hill 1.683 70% C- Portola Valley 77 98% A
Mountain View 1.136 34% F Redwood City 458 19% F
Palo Alto 2,024 150% A+ S. San Francisco 1,212 94% A-
San Jose 24,234 96% A San Bruno 695 190% A+
Santa Clara 4,226 69<>/0 D+ San Carlos 175 49% F
SaratOQa 580 lll% A+ San Mateo 1.338 57% F
Sunnvvale 1.710 46% F Woodside 115 288% A+
Unincorporated 1104 79% C+ Unincorporated 2,002 123% A+
Total county 43,407 77% C+ Total county 9,365 59% F
Grading scheme: 1{)()'J(, or more = A +; 95-99% = A; 90-94% = A-; trl-89'J(, = B+; &'J-86'J(, = B; 8fJ-8Z'J(, = B-; 71-79%
= C+; 7S-76'J(, = C; 70-7296 = 0-; trl-89'J(, = D+; &'J-86'J(, = D; (j{)..(j2% = D-; less than (j()'J(, = E
Source: Bay Area Council
MERCURY NEWS
REPORT CARD I Valley gets C+ on housing
ContinuedJrom Page Ie
More than 184,000 permits
for new housing construction
were issued by Bay Area city
and county governments from
1999 through 2005. That in-
cludes all types of housing,
both rental and for-sale units,
houses and condos. The total.
number of permits was 17 per-
cent short of the goal set by
the state and the Association
of Bay Area Governments,
said Andrew Michae~ vice
president of sustainable devel-
opment for the Bay Area
Council.
Ed Moncrief, executive di-
rector of Neighborhood Hous-
ing Services Silicon Valley, a
non-profit affordable housing
developer and mo~e lend-
er, said developers in the
South Bay sometimes shy
from building on sites they
know will be . difficult to get
governmental approval for -
thereby letting an opportunity
for new housing go unrealized.
"In some communities
there's excitement and de-
sire," to build new housing, he
said, "and in others there's
quiet or not-so-quiet resis-
tance, politically - so that lo-
cal government is skittish
about doing anything that's
proactive."
Chris Mohr, executive di-
rector of the Housing Leader-
ship Council' of San Mateo
Cou:i:lty, said his county's "F"
doesn't reflect the work now
under way to increaSe housing
production th~re. He cited the
cities of San Bruno, Millbrae,
and South San Francisco for
recent efforts to create hous-
ing near BART stations, and
Redwood City for planning to
build housing near downtown.
In addition, 17 San Mateo
County cities have joined a
housing trust fund to invest in
affordable housing produc-
tion, he said Also, a recently
passed law allows cities to col-
laborate in identifying sites
and funding for housing with-
in "subregions," which he said
should help increase "housing
supply in the county.
Residents who don't want
the Peninsula's suburban
character to cha.ng'e resist the
construction of mgh-density
housing like apartments and
condominiums, he said.
"But it's already changed.
The congestion is already
here, the jobs have already
been created. So the question
is, will we be able to house .. .
the workforce and the. i kids
who grow up here?" he said. "I
think more and more people
are recognizing if we keep it
this way it's not going to be
the kind of community we
want."
IF YOU'RE INTERESTED
To read the report, including letter-
grades for all the region's cities and
counties, go to www.bayareacoun-
cil.org/hp3.
Contact Sue McAllister at
smcallister@mercurynews.com
or (408) 920-5833.
()A;hitL ~ or :<
P I~ -I '0
! \../ f:~j
1 ./'',,>- \J
! J"
'-U)
j\\/\ (~] ~:~ e S ..j
r.'~i S
MIXED-USE
COMMUNITIES
April 2006 . Second Quarter
s:
h~:
i I (~~ f
r-'~ T- l_ ~,...)
/-'! I I c' ;~~"
l~_A \....1.) \........1
In her classic, "Death and Life of American Cities,"
urban activist Jane Jacobs describes how
sidewalks, shopfronts, a mix of uses, well-designed
public spaces and myriad other features interact
to make wonderful, successful city neighborhoods.
Her ideas underlie the New Urbanist
philosophy that resonates with city planners and
/1
. .'"'.1
city governments. Young professionals,
empty-nesters and families who want to live in
urban neighborhoods, because of the lifestyle and
convenience that shops, entertainment,
restaurants and residences-all in one place and
within walking distance-can offer.
-Continued on page 2
Urban Context Figures Large
in Mixed-Use Design
Context-the milieu or surroundings of a building
site-is an important word in an architect's
vocabulary. Respect the context, and you have a
building that fits harmoniously into the community.
Ignore it and the building forever after looks like a
mistake. -Continued on page 3
tv\ixed-Use Comrnunilies iV\ake
a Perfect N\arrioge for
Many Retailers
Laurie Parrish's commute to work is measured in
steps-50 to be exact. In November 2005 she
moved into a townhouse in Harbor Walk, a 36-unit
Olson Company community on the City of
Benicia's main street.
-Continued on page 4
What Can We Learn
From New York? -on page 6
DH< "/0
.
, ',."
::,};(~!!;\"" '
'f "
t",:,~
~';~"t':~
"i'2
-Continued from page one
These neighborhoods are also an efficient use of
land, says Pat West, director of community
development for the City of Long Beach.
"Suburban sprawl. which encourages the use of
the automobile and requires more space, has
occurred because people built a one-story
residential complex on a piece of land, created a
parking lot next to it, then commercial on yet
another piece of land and parking for it," says Pat
West, "In mixed-use, you have parking, commercial
and residential on one piece of land. You get a
symbiosis of land uses that creates vibrancy."
neighborhood will offer 195 townhomes, including
six live/work residences. West says, "Long Beach is
very excited about the Olson company mixed-use
projects that are in construction, soon to be
constructed and those being planned."
The City of Benicia also embraced the concept. To
bring activity down to the waterfront on its historic
downtown 1 st Street, the city specified mixed-use
residential/retail. Here The Olson Company built a
community of 37 townhomes and 7,770 square feet
of highly desirable retail space.
West sees the benefits of mixed-use for Long
Beach. The downtown is experiencing a
renaissance with the construction of 3,000 to 4,000
new housing units. Many are mixed-use, such as
The Olson Company's 133 Promenade Walk, a 97
for-sale townhome community, which includes
seven shopkeeper units, restaurant space and
parking for nearby retail. The company's Broadway
Walk in the downtown's new West Gateway
Mayor Steve Messina explains, "The federal
government, the Environmental Protection Agency
and most of the developed world looks at
mixed-use as a smart alternative in terms of
housing. It creates a more livable community."
~
'~,..-
Long Beach, Promenade
.,:.
VIR -:'10
;, , ~ ,-J I I r, '-'
;Xi~, 1-- J'-f~
!_' '."_~' ',,....t.i ,-_....J '-/
1 i ...~ '. ; r-~ I
'.' (' ,~\. '"'I',r), (-) l,r\ 1'. /....:.\ 'I. ", :-,' ',' (~l" ) ~,'r, '.
0' j! ~ ! - _ _ r- - L C.,~~ r[.-~,l f~ l,_ ~.;~}
" I r...../ '-.t: I \_J '--::, I I I .........,. / ',~ ; j:::::J........ I ''-..J''.-I ,'" ....-
Continued from page one
, ,
.-' !
l,.....,,~
I;
fhat's particularly true for mixed-use, And it's why
Jeff Chelwick, Senior Principal for attached
residential design, William Hezmalhalch Architects,
Inc., carefully studied Benicia's downtown before
planning Harbor Walk, a mixed-use residential and
retail community on the City's historic 1 st Street.
"We did an analysis of the street to see its historic
base and existing fabric," he says. "Then we
created a 'story' for the buildings we designed."
The story is in the four modules that comprise the
community's 36 townhomes and 7700 square feet
of retail. The buildings are two-story in front, which
met the city's requirements for storefronts, and
three story townhouses in back. Each module has a
different theme. One incorporates a bell tower,
which the architects dubbed "The Tannery," a nod
to the site's former use, and another, "The Old
Hotel." which looks like it was an early 20th century
structure renovated into town homes. By using
materials found in other buildings along 1 st
Street-wood siding and brick on the townhomes,
and wooden entry doors on the stores-the
architects achieved a timeless effect.
Steve Messina, the City's Mayor, says, "Benicia is a
unique historic downtown. The challenge was to
integrate the community with older historic
buildings. You don't want to emulate them, but
you want to make the new construction
compatible so there's a harmonious relationship
between new and old."
Context demanded a different solution in
Richmond's Metro Walk. The existing BART and train
station, which was the dominant element
downtown, suggested a contemporary look for the
units that faced the station. The City didn't have
the historic context of Benicia, Chelwick says, "It
was more urban, more Main Street, U.S.A."
Richmond is a vertically integrated three-story
community comprised of lofts, live/work units and
townhomes. In this mixed-use community, there are
no setbacks, and retail is kept to the corners of the
building. The design is broken by material and
color changes. Owners comment that the
buildings look and feel like "living in New York,"
high praise from residents who want a sense of real
urban living.
',)ft</c.2l 3
Mixed-Use Communities Make a Perfect
Marriage for Many Retailers
4
-Continued from page one
At about the same time she relocated her fine
jewelry store, The Jewelry Box, to one of the four
retail spaces below the community. Since then she
has put only 600 miles on her car and reduced her
commute from 40 minutes each way to a few
minutes.
Parrish says her new store gives her "better access,
more exposure and is in a safer location" than her
former location within a shopping center. And, by
purchasing a townhome in which she uses the
lower level as an office, she can use the entire
space in her new store for display.
Michael Kwan, owner of Wokano, a restaurant and
bar, chose The Olson Company's Burbank Village
Walk for his 5th restaurant because of its proximity
to daytime activity, the 140 townhomes, lofts, and
flats above his store and the active nightlife scene.
"We're expecting that 30 percent of our catering
and deliveries will be-.tQ-surr.oundingofficesand--
people in the building," he says about the
restaurant, which will open in mid-July 2006.
Many cities, like Benicia, are using mixed-use to
generate the housing and tax revenues they need,
says Ted Slaught, President of Hillcrest Development
Partners, an affiliate of Charles Dunn Company. To
be successful, "retail has to follow the existing
daytime population base," he says. "The best
scenario is to have both residents and daytime
population."
These conditions are satisfied on Benicia's busy
main street and have contributed to Starbucks'
decision to locate a store in Harbor Walk. Gabrielle
Tierney, a development manager for Starbucks,
says, "The Harbor Walk project seems to be pulling
tenants and residents together to complement the
immediate trade area, which will make it a more
dynamic gathering place." In addition, she says,
"We pride ourselves on the build out of our stores as
well as the design and quality of materials we use.
The quality of the Harbor Walk project is very attractive."
VI 1<. ,,-,Q~
"ierney sees many advantages to placing stores in
nixed-use residential/retail communities.
'5tarbucks is all about creating a special place
'v'here 'community' can happen. It's a natural for
JS to be an extension of the community that
lappens in a mixed-use residential/retail project."
t's clear that Parrish, Kwon and Tierney have
igured out a "survive and prosper" retail strategy
:or the 21 st century, one that recognizes the
Jutomobile is becoming a liability in an era of high
;]as prices and overcrowded city streets and
:reeways. Homeowners want to live urban and
;hop where they live. When the retailer can live
~hat lifestyle, too, like Parrish, or achieve their
Tlarketing goals, like Tierney, or count on attracting
:l customer base from the real estate above the
store, like Kwan, the marriage of retail and
residential is just about perfect.
-
Alhambra, Gateway Walk
MiXed-use
Benicia
Oakland
Richmond
~.
.--
"-
Alhambra
Burbank
Camarillo
Fullerton
Long Beach
National City
San Diego
:)31 ft7 ~
-~
:fr;
"-
-
~!i
"~
-
7)112 5~3
What Can We Learn from New York
(What Makes Good Mixed-use?)
6
"A generation ago, downtowns [in many cities on
the West Coast] were for work. After dark, they
were empty," says Pat West, Director of Community
Development for City of Long Beach. "Now
downtowns are bringing in people with
discretionary income into market rate housing to
provide the synergy for a retail shopping
experience in the downtown." Mixed-use
communities add another dimension: a "New York"
feel to formerly overlooked neighborhoods where
retail and residential reside comfortably in one
property, drawing shoppers and residents alike to
experience the newly vibrant city.
Ted Slaught. a real estate broker with 25 years
experience in commercial leasing and President of
Hillcrest Development Partners, an affiliate of
Charles Dunn Company, says that certain
conditions have to be present to create the
optimum conditions for mixed-use. "Retail needs
foot traffic, which means either a built-in
population, or at least an existing daytime
population base. In downtown LA, for example,
there weren't a lot of residences until recently, but
certain businesses survived because there was
sufficient population in the daytime hours.
"The best scenario is to have both residents and
daytime population," Slaught says.
Kerry Krull, owner of Romancing the Bean, a
gourmet coffee and tea shop in The Olson
Company's Burbank Village Walk, says her location
has these factors in addition to drawing an
evening crowd. "It's great to be a store under 140
townhomes in an already busy neighborhood," she
says. She counts on customers from a nearby
400-member gym, a hotel across the street and a
large residential apartment building, which attracts
people working in the city's film industry.
The same factors that result in a freestanding
surface park commercial space apply to mixed
use, says Slaught. "There has to be adequate
visibility, ingress and egress and parking. Space has
to be configured appropriately. As long as it does
that, then the fact that it's integrated with housing,
as long as it's well planned, will enable most
retailers to function well." he says.
Proximity to urban life and transportation are also
good spots for mixed-use. Tamera Brown's
shopkeeper/loft space in Santa Ana's Artist Lofts
Walk is often abuzz with customers and friends on a
Saturday night when she and her husband hold
informal gallery exhibits to coincide with the city's
First Saturday art events. Their first floor shopkeeper
unit functions as both her artist husband's
workspace and gallery showroom. Likewise,
residents of Richmond's Metro Walk enthuse about
both their ease of transportation and shopping,
because their mixed-use community is adjacent to
the only tri-modal BART station (BART. train and bus)
station in the Bay Area.
Mixed-use creates many opportunities to make
customers out of residents-and attract shoppers to
experience the excitement of a fully functioning
urban experience. We're not Manhattan, but who
says that we can't learn something from them?
1) I ~ 'c:J 4
J"B~e. Association of Bay
.tq... Area Governnlents
,\1 FTltO PO I,ITAN
TI{,\NSI'OrtTATIUN
Cn,\l.\lfSSIOi'.'
Volume 1
issue 1
,1---'"]~~!-",r..".,.,,.t.~-HA. 1)i~r'I"~T"'~T~'.':-" .en.".' ~-~ho,o. 1[}l-::b;I /.:. ,.",0.-'"
",--,VJLJL<ti:.IU'VJL a Jl vc. JL JlalllUiJiJLU5 lL'U'lL \L!lJ:.~ lUlU. j ..l'i..!. '_<::1
Vvelcome to the inaugural issue of the Focusing 0111' \1ision
v!hich win he is';uccl IXTiodicalJy. O!!r Vision is
;\
i.JIi.Li~ILiv'c th~-It
!C}Ct!J
111 ~1 i
and communities together to protect and improve the quality of
life in the Bay Area.
Focusing Our Vision builds on a solid foundation, notably
including the pioneering Sl1lilrt Gro1yth Strategy/ Regional
Livability Footprint Project, completed in 2002 by five regional
agencies* and the Bay Area Alli~nce for Sustainable Communities.
The "Footprint" blazed a trail as the first smart growth vision for a
major metropolitan area in California. The goal was to
accommodate new people and jobs in a way that protects Bay Area
characteristics that residents cherish: vibrant communities,
distinctive neighborhoods and a breathtaking natural
environment. From this project and dialogue, a vision began to
take shape of existing and new communities clustered along major
corridors and near transit in a "Network of Neighborhoods." The
resulting regional pattern would become more compact, provide
ample housing and mobility options, and foster thriving, well-
designed communities. At the same time, the regional economy,
social equity, and the environment would also be enhanced.
Making a Difference
~~l\i'Y^"lI'
~ A11~l1!.Ii\Lln'
~ f','\i.II!,'_;[.dl.lll
~ 1)1"11'1"1
~-~. . :.. ." ',"n':>;~~''';''~--'''.''"ciJ-''
~,~ '11~1;""ck r~Y'i'.~.+';~7~~i..n: -
rtffl'- ",[1 'it ~~~:1' ~l' \ .'
J;} ,~= ,..""'.....' ff....,;;. r ':<."-G,
~ I W -- .. . --:- ~ 't..c r . >.,J.- ,II'
~~'~~-i::.r::E?~-"~~ .._ ..........:-. ..' 1l"J.{ ,
~_ .....~._,~.. t't .. L---'" .'. I tOOl
~~I~:L~:"~~~;:C:..,k,.~'- '"'!j:;:~iJz
200Ci
VVhile some important steps have been taken to advance the
Vision (described in Regio1lo1 Actions to Support the Vision on
l:'l~-~gc J )l".l-):-'rt: is
. .,
[ii \i{.J_
, .
lJ'n 1.0 un
,
:-:;-!!
l.l-!c
into sharper focus. We will collectively identify and confirm
regional and local priorities about where and how we should grO\v
and develop, and which areas we should preserve and protect.
Once confirmed, these areas will be knit together into a regional
development strategy.
~Associotiol1 of Bay ArCf1 GovCnl/llcllts, /l1[ctropolitnll Trnnsportntio/l COllllnission, Boy
Aren Air Qunlity Mnungeulellt District, Regiollnl Wnter Qunlil)! Coutrol Don!'d, nud Bny
COllSC1Tntioll f7/1d Dct1clop17lCl1t COIll/1/issioll
Shifting development patterns in the Bay Area from existing patterns of
sprawl toward a more compact, transit-oriented, resource conserving
pattern will result in measurable benefits for Bay Area residents. Comparing
policy-based smart growth projections to business-as-normal development
trends could result in the following differences by 2020:
(;> lncreased Transit Ridership
120,000 additional transit trips per day, the equivalent of 180 lO-car
BART trains due to the proximity of housing to transit
. lncreased Pedestrian and Bicycle Use
] 60,000 additional daily walking and bicycle trips based upon the
proximity of housing to jobs, services and amenities
~ Reduced Automobile Use
36 million fewer vehicle miles per doy and 60,000 fewer vehicle hours of
delay per day
~. Reduced Greenfield Development
The acreage of agricultural lands and other open space developed for
new housing could be reduced by 102,000 acres-the equivalent of about
102 Golden Gate Parks.
A regional
. development pattern that
· Is compact and connected
. Supports transit and transportation choices
.. Provides housing choices for aH
.. Promotes social equity
.. Fosters thriving and well-designed
communities
. Preserves and protects natural resources
· Is efficient and fiscally responsible.
'" . T."-;-'
'"0':'"
'he Association of Bay Area Covernments (ABAG) and the
iletropolital1 Transportation Commission tlVlTC) are working
vith local governments and communities on three interrelated
nitiatives that will result in a stronger, more focused regional
'ision. Each initiative is described below.
frct11sit-Orie11ted De"velopJlYlent
n 2005, Jv[TC took a bold step tovvard advancing Transit-Oriented
)evelopment in the Bay Area by setting transportation corridor
hresholds to encourage housing development around stations, in
\,~';i]lI:ltjOIl \'itll1 transit c';tellsions, Tn partnership with
I,)("di \:crnr]]cn r-~) Tl.'l(j 1.1.-;1 ,Jlj()n ;Lgcncjc-'<) t/f'r(~ ar-Id
I[SO embarked on a pilot program of corridor and station-area
pbns. Current plans are underway in the following locations:
<> Alameda Point ferry terminal
<> eBART corridor in eastern Contra Costa County
~> Fairfield multi-modal station on the Capital Corridor rail line
,~ '\Varm Springs station on the BART to San Jose extension
~'" Menlo Park station on the Dumbarton rail line
~ Coliseum BART Station, with a rail connection to the
Oakland Airport
'C-" Pleasanton BART station (Hacienda Area)
<\) Santa Clara station on the San Jose BART extension
;,) Downtown San Leandro bus rapid transit station
+ Downtown Santa Rosa SMART station.
Multi-modal Corridor Planning
The Bay Area's current preferred smart growth scenario is
described as a "Network of Neighborhoods," which proposes a set
of lively communities strung like a necklace along major
transportation routes. To assist this type of dynamic community
planning, ABAG and MTC are currently working with
jurisdictions along three major corridors to search out
opportunities to build and reinforce livable and walkable
neighborhoods. The vision is that tbese neighborhoods become
places that work as complete communities; that reduce the need to
make long trips to meet everyday needs; that provide ample and
enjoyable opportunities to live, work, and recreate; and that
function in harmony with the street and transit infrastructure.
::.y
fJ\""
.:~ -
.~e.. ..' ',r- ,.....
"'" -.;
\' i.' "...::-. I
&i .'(:,....}.
"''''-1"'"-""".
..
/'
I
~-
The three corridors, which together nearly encircle the Bay,
include:
"> San Pablo Avenue, from Hercules through Oakland
,~ East Fourteenth/International Boulevard, through Oakland,
San Leandro, and unincorporated Alameda County
~. El Camino Real, from Daly City, through a string of cities in
v San Mateo and Santa Clara Counties, ending in the City of
Santa Clara.
Priority Development Areas
The areas around transit stations and along major developed
corridors are two examples of where the region's smart growth
vision encourages new housing development. The vision places a'
general priority on infill development within existing
communities to take better advantage of existing infrastructure
(particularly transit), to reduce travel demands, and to help
conserve the region's open-space. The designation of "Priority
Development Areas" will make this general policy objective more
specific.
The plan is that priority development areas will first be iclentified
in draft by overlaying geographic representations of the smart
growth principles that underlie the Network of Neighborhoods
vision. Specific boundaries and development densities will then
be negotiated and developed in discussion with our local partners,
thereby merging and melding together regional and local
objectives. The result will be a set of maps that identify the parts
of the region meriting incentives and other special assistance to
achieve the desired level of development. A similar overlay and
negotiation process will also be used to demarcate those areas
where urban development is dearly inappropriate, creating
resource protection areas.
The end result will be designated Priority Development Areas and
Resource Protection Areas, constituting the core of a basic, first-
cut regiond plai1. The goal is a plan owned jointly by the region>11
agencies and by local governments, and supported by a broad
spectrum of Bay Area communities and interests.
F':,,7;::":
';'..-",'.
,.~-..;;, ,
D/r<....~
., ...
";. ~i,:....C'. i
1t"J
.tl.- ~i t
.jI.~
, .
"'..t , .....}
~~,.~ ~ ~~ '~1 t"\
... ~~';-4g)rl,
:lf~._ .'.. .,~__'.
~~\J'J~=d~,3n S-cJ2:S I?~"~cG (rf fExIsting
Siu19~,-=-Falrn~n\/ t'"~()LY~'2S, 2nos
U.S. Bay Area
Percent Able to Afford MecHaG1-
Priced Bay Area Home
25F-- -2
20
"'-' 15 . .
c
OJ
u I
G:i ':[
CL
0
a ,..., r-v ", "1- g;
a a a a a
a a a a a a
r-v r-v r-v r-v r-v r-v
Increase in Daily Transit Trips,
2000-2020
600,000
500,000
400,000
300,000
2.00,000
100,000
o
trend
Smart Growth
-7
-,. -:':) _,"~2~S':'='~
..- j
Focusing Our Vision is built upon the connections among four key elements
of regional concern:
(@) The Natural Environment
@> People and Where They Live
@> Infrastructure (including Transportation)
@l Economic Activity
While all four elements are a vital part of the mix, housing is a strategic focus for
our current efforts, as the following facts illustrate.
lij Homeownership in the Bay Area is prohibitively expensive to all but a small
percentage of households, based on income. Rents for residential properties
,he :1111:\11:' ilil' Ui
c)
The high cost of housing threatens the health and competitiveness of the
regional economy.
Housing costs have a disproportionate impact on the most vulnerable
segments of our society.
MTC has determined that locating housing and hence population closer to
existing transit will have a greater positive impact on transit ridership than
new investment in transit infrastructure.
The form and location of new housing will greatly impact overall land
consumption patterns, including the permanent conversion of agricultural
land.
Since all four key elements of regional concern are inextricably
interconnected, an emphasis on housing will not exclude, and indeed will
require, parallel considerations of environment, economic activity and
transportation elements.
Incentives on the Horizon
Most observers believe that Californians are overdue in making necessary
investments to improve and maintain our public infrastructure - both to serve the
people who live here now and to plan for our children. The Governor, the
Legislature, and other policymakers are actively discussing and debating various
proposals to create new funding for infrastructure.
Smart growth incentives to help ensure our investments are efficient and support
the future we desire are also part of the conversation. The incentives are being
explored both as a possible feature of a bond package and as separate legislation.
Related smart growth incentives include:
~ Funding for local general and specific plans to help make plans consistent 'Nith
regional development objectives
<. Transportation and other infrastructure funding to support in fill and transit-
supportive development
<:~ Grants to acquire and protect open space, agricultural land, and important
habitat
(-:. Funding to clean up contaminated sites (brownfields)
~~ Funds for housing assistance.
Continuing state support for regional plans is also proposed and local conformitv
vvith a regional development strategy might serve as a gateway to funding for
planning, infrastructure and related local needs.
PII2,-2'7
~.....::",:'-""f:...~ c ,,1,.:-
1,~. :i~~<:~ ~ ',.
rr I' -'-
. , i"'.'1
. -. ,- ~1
I;";
':~ ",,,:,,~,'hiif.~.~j\ :,. ..:.:\'):.r.~~"
. r~j ~~~"' :, .~~ f~~ '1, . ~~J.- . ~ j
:..'~ ..~ ..', .f _',
~-'. 'l.J(..__.....:I...--.I'
~.~li.si"G.iT~~
The Bay Area's regional agellcies have taken several
specific steps to advance the Vision:
Ad.opted common, multi-agency Smart Growth Preamble
and Policies as the official expressi.on of the Bay Area's
sm.art growth strategy. Includes a summary statement of
the principles underlying the region's vision.
Produced poHcy-based. Projections. Adopted by ABAG,
these ~He the region's offici;l] population,
11()t!:>"! lei;.. [;1!.-1IJr ;-! ,lit i
llsed by MTC and the Air District to provide the
demographic and economic assumptions for the Regional
Transportation Plan and the Regional Ozone Plan These
forecasts assume that local policies vvill change over time
to conform more closely to the vision.
Developed a Transportation/Land-Use Platform in
Transportation 2030, the 2005 Regional Transportation
Plan. The Platform expresses IvITC's policy commitment
to smart-growth principles and land implementation.
Implemented Transportation for Livable Communities
(TLC) and Housing Incentives Program (HIP). This
program uses grants and transportation investments to
encourage smart growth development.
Ad.opted a Transi.t-Orien.ted Development Policy.
Approved by MTC in July 2005, this policy aims to ensure
significant new transit investments are backed up by local
land use plans that will result in transit-oriented
development. The policy sets corridor-level housing unit
thresholds that local plans must meet to receive capital
funds for new extensions. Funding for station and
corridor planning to assist local jurisdictions in meeting
specified thresholds is also provided.
Association of Bay Area Governments
Metropolitan Transportation Commission
101 Eighth Street. Oakland, CA 94607-4756
www.abag.ca.gov . www.mtc,ca.gov
PRSRT FIRST CLASS
U.S. POSTflGE
PAlO
Permit r'~o. 832
OAI<LA"D, CA
***********AUTO**5-DIGIT 95014
STEVE PIASECKI PLANNING DIRECTOR
CITY OF CUPERTINO
C!TY HALL
10388 TORRE AVE
CUPERTINO CA 95814-3282
11,1",1,1,11",11,11,1,,1,.11.,.1,111,,1.,1,111,1,11..,.1,,11
RECEIVED JUN 0 l' 2006
PIQ-<26
SILlCON VALLEY I SAN JOSE
Book of Lists
Paid subscribers: Check
JULY 28, 2006
VOL. 24, NO. 13
$1.50
96 N. Third St
Suite 100
San Jose, CA
95112
., ",,? 't ',,? ~ ~ "t" f'
, , .'~r~!fi.~\~'" \
< ;, "%'!+"~S2~4'; \ :;; ~' ~; f'
, " "",' '"" >' h II '
;0> ~ -1 ""i ~ ~ t
?f" ~ ",,:..~ t s~ IS ~'*: ~ ''- c< ~ ,..,
~ ~"'" t?R if 't}j -j;'~, ''''''1 < * ~
" "'"",,, lmi",,-,,L""ld'H I.~I.. ", ,
DENNIS G, HENDRICKS
MAKING GOOD DOUGH: Dan Brunella, an owner of Le Boulanger at his Sunnyvale store, says his business has recovered from the valley's downturn.
Regional newcomer Panera won't find
its competition just loafing around
BY RAKSHA VARMA
raksha@bizjournals.com
The competition is heating up for a pair of dueling
breadmakers, both attempting to capture a larger
share of local cafe-goers in the South Bay.
In 1981, the Brunello family of Los Altos founded
Le Boulanger Inc., a chain of bakery cafes based
in Sunnyvale. That same year, Louis Kane and
Ron Shaich created Au Bon Pain Co. Inc., a Boston-
based company that prospered along the East Coast
through the '80s and '90s.
In 1993, Mr. Kane and Mr. Shaich purchased Saint
Louis Bread Co., a chain of 20 bakery cafes. That
merger resulted in a bread company called Panera
Bread Co. - the gem of St. Louis and the single busi-
ness unit kept by the duo after they sold all of Au Bon
Pain's business holdings in 1999.
Now publicly held, Panera Bread, which has tradi-
tionally targeted East Coasters and those residing in
the Great Plains and Great Lakes states, has turned
its attention to California. .
"The Bay Area is a good market for us," says
Mark Crowley, a spokesman for Panera. "There's a
tradition of good bread here, a long heritage of sour-
dough."
Since last year, Panera has opened three locations
in the South Bay - in Cupertino, Gilroy and San
Jose - and plans to open a pair of locations before
next year - one in Millbrae this September, another
later in Campbell. It already operates four locations
in the East Bay.
"It's [Paneral doing a great job," says Dan Brunello,
an owner of Le Boulanger, which operates 17 bakery
cafes on the peninsula. "The competition actually helps
attract more interest to bakery cafes... it doesn't faze
me, because our business is a little different. Our busi-
ness is community-based, and our clients are loyal."
Mr. Brunello's father, a Northern Italian, started a
small bakery near Mt. Shasta that employed four. Af-
ter the family re-Iocated to Los Altos in the late '50s, he
began his second bakery, Palo Alto's EI Real Bakery.
His retirement led brothers Roger and Dan to start Le
Boulanger in 1981.
The Brunello family enterprise, now a 375-employee
company, also has catering operations for office lunch-
es and pool parties. Each' of its retail locations bake
fresh bread on-site and dish up tasty breakfast and
lunch items, such as an Italian frittata for $4.45 and a
spinach al fresco salad for $7.45.
See BREAD, Page 34
P,t2.... ~
BREAD :Panera,
La Boulanger rivalry
comes to South Bay
cormNOED FROM PAGE 3
The South Bay chain has added a
deluge of fresh items, including a Bay
shrimp melt on sliced sourdough for
$6.95, to pepper its product offerings.
"Consumer confidence is up," Mr.
Brunello says. "The amount custom-
ers are spending is up."
That's been a source of contention
for Le Boulanger since the days of the
dot-com bust. From 2000 to 2003, the
company's profits started to slide as
high tech campuses cut or consolidat-
ed food operations, Mr. Brunello says.
Beginning in 2004, its sales began to
pick up again.
But Panera's expansion plans may
threaten that.
"It's troubling," says Troy Tibbils,
general manager of Zanotto's Down-
town Market. "Bigger guys can do
things better -c- and longer, because
of their resources. But it's not fair,
since a lot of small businesses are
rooted here."
'I think we can co'-exist in
the same markets... It's like Peet's
and Starbucks, right?'
Dan Brunella
Owner, La Boulanger
Panera's expansion strategy has
contributed to higher second-quarter
profit on stronger sales and custom-
ers traffic at bakery cafes. In finan-
cial earnings released Tuesday, the
restaurant chain operator reported
second-quarter profit jumped 35 per-
cent, as same-store sales increased
3.2 perceJ!,t during the quarter. Sales
for the company climbed 41 percent
from last year to $197 million this
year.
One-third of Panera's 800 stores are
operated by the company, the rest by
franchisees. The company has 40,000
employees and takes pride in its con-
sistency.
"If you were to go into our Antioch
and San Jose locations, one thing
you'll notice is that very little is dif-
ferent in terms of the atmosphere and
feel of the store," Mr. Crowley says.
Each bakery cafe bakes fresh bread
on-site and offers a range of standard
cafe fare priced from $6 to $8. But at
Panera's MarketCenter location, that
comes second - customers. are first
courted by Ii melange of tantalizing
treats as they stroll in. Cinnamo.n
crunch bagels go for 89 cents a pop,
fresh strawberries and cream pas-
tries coated by a thick honey glaze at
$1.89 for one.
"I think we can co-exist in the same
markets," Mr. Brunello says. "It's like
Peet's and Starbucks, right?"
RAKSHA VARMA covers retail, small business and
banking. Reach her at (408)299-1829.
DIre -~
CC> ~ t5
=
c:> c::i ~
"'" :z "E
oS ~ :2 = llf
"'" I- ~ C>
~ ..J = z! "" ~ ~
:::;) C) ~ :I::! = ;z;
~ ..... CC> ::::I ..
> .. <7.1 V,) V,) <7.1
Lengthy Cupertino
fight over growth
may be taking toll
~
BY SHARON SIMONSON
ssimonson@bizjournals.com
C)
c::
--
E
Q
U.I'
~
u
en1
....u
en ..
.- f2
"'Q)
.0
.... .C
Q~
.:.=-g
QU)
Q~'
m&
Will anything ever again get built in Cupertino?
Last year, the community of 54,000 slogged through
a .divisive debate about the virtues of three proposed
land-use rules to limit building height, density and
set-back.
Voters ultimately rejected the regulations, proposed
by a cadre of community activists through the initia-
tive process.
But as the community debated,' development largely
remained on hold.
Now, thanks to a July 14 Santa Clara Superior Court
ruling, Cupertino almost certainly will be slogging and
agitating again, at least through November's election.
This time voters face questions on two proposed
condominium developments near Valleo Fashion Park.
Both were approved by the Cupertino City Council in
March. Together the two developments would bring
about 500 new condos to the town - roughly a 2.5 per-
cent addition to the existing 20,000 unit housing stock.
Both projects are opposed by a vocal and energetic
minority who gathered sufficient signatures and have
now successfully overcome a challenge in court. This
time, they used the state's referendum process.
Earlier this year, council meetings were often mara-
thon events often lasting well past midnight, as the
Vallco developments and others were discussed. All
that has changed. The city council has seen its agenda
grow light, Mayor Richard Lowenthal says.
No one is proposing any new major Cupertino devel-
opment projects -again.
Clearly the developers will be back.
But when is the question, according to developers
and local observers, who are experiencing what might
be described as deja vu all over again. The question is
becoming less theoretical and more something else.
"The way business works, we have to determine what
opportunities present us the best chance of success,"
says Mike Forsum, a regional president for Taylor
Woodrow Homes, which earlier this year saw a pro-
posal for 94 single family homes in Cupertino defeated
but remains interested in the city nonetheless.
"At times like this, we have to step back and defi-
nitely be cautious in terms of determining our probable
level of success."
Already one council member says he's worried that
the controversy undermines Vallco's successful rede-
velopment. Potential tenants Could be driven away, says
Orrin Mahoney, who voted to allow both Vallco housing
projects to go forward. He's certain that the back-to-
back elections over development will have long-term re-
percussions that aren't understood or anticipated now.
See CUPERTINO, Page 10
V/~"-31
CUPERTINO: Opinions are divided as to whether local citizens will. embrace Apple's proposal
CONTINUED FROM PAGE 3
Citing recent events in Sunnyvale, which has strug-
gled to reach agreement with a developer to rebuild its
main mall, he notes that Vallco, too, has had "many
ill-fated turnarounds."
Vallco's success is not academic for Cupertino, he
warns: "Vallco is critical. If it doesn't get turned
around, we are in trouble as a city. We are losing other
funding sources, and as you look out on our horizon,
Vallco's success is no small matter."
The housing projects that the mall has proposed - a
second condo project on mall land with 204 condos has
been approved - were sought to provide collateral to
finance parts ofthe mall's $200 million plus redevelop-
ment, says Mike Rohde, Vallco general manager.
"We wanted to have the f"mancing for common-area
build out and upgrades and for tenant improvements,
which are significant costs," he says.
At present, Vallco contributes $1.1 million a year in
sales tax revenue to the city, he says. Citing numbers
from Cupertino's own economic development reports,
he says the mall has the potential to generate four
times that sum each year.
Cupertino's gyrations also have implications for the
entire region. Apple Computer has said it hopes to build
a new headquarters campus on 50 acres it has acquired
in Cupertino, its existing hometown. Apple's leasing
in the past two years or so has nearly single handedly
shifted the Cupertino commercial real estate market
from one favoring tenants to a landlord's market.
Opinions are divided among Cupertino leaders
as to whether citizens will embrace the Apple pro-
posal or do their best to thwart it. Apple is a major
regional employer and a global brand whose cachet
sheds almost nothing but positive light on the valley
at large. Were its expansion plans foiled, the story
would almost certainly become national and even
international news.
Other companies, including long-time Cupertino
corporate citizen Hewlett-Packard, also are watching,
says Richard Robinson, a local attorney and political
campaign consultant. One of the proposed Vallco hous-
ing developments is supposed to be built on 30 acres
owned by HP, but which the company hoped to sell.
Mr. Robinson helped defeat the three initiatives last
November. He says he is disgusted to find his home-
town at what he sees as the same precipice again, held
hostage by a small group of citizens that he does not
believe represent the city at large.
"As these projects are repudiated, developers will
stop coming to town. Land will sit vacant and eventu-
ally you will get blight. Property values will fall," and
ultimately, what the residents who oppose development
fear most will occur, the town's institutions, including
its vaunted schools, will be weakened, he says. "But no
one will notice it until 10 or 20 years down the road."
But Edward "Ned" Britt says the elected leaders and
Rich Robinsons of Cupertino are entirely missing the
point. Mr. Britt helped get last November's initiatives
on the ballot and says his organization, Concerned
Citizens of Cupertino, is likely to lend a hand in the
coming campaign to keep the Vallco housing from get-
ting built.
Apple's plans, rather than arguing for more housing
for the company's 3,500 employee, should be persuad-
ing the city to retain its industrial land, he says. The
H-P property by Vallco has long been identified as a
site for workplace development. The city should keep it
that way so it has industrial land ready when the next
Apple or H.P comes along.
Beyond that, he says, those pushing the town most
strongly to develop housing are not residents but out-
siders - environmentalists, hoUSing advocates and
people who want to live in Cupertino and are looking
for a way in.
. "None of it is to the benefit of the residents who live
here already," he says.
As far as having to leave Cupertino to buy books,
office supplies, car parts and hardware - the town
has no stores dedicated to any of these four categories
- that is more argument still that the city should keep
its commercial land to attract those retailers and not
turn it into housing, he says.
Their current absence has nothing to do with. the
city's reputation as a tough place to get things built.
Rather, it's that land prices are so high that retail
rents are affected, and the property owners figure that
if they lose their tenants, they can just go to the city to
get permission to build homes, he says.
SHARON SIMONSON covers real estate for the Business Journal. Reach her
at (40B) 299 -1853.
;;j
~
\
~
9-.)
--1
AUGUST 2, 20061HE CUPERTINO COURIER 13
NEWS
-f?
..................................................._...._................._.....................................m.............._.._......................._...............................................-............................-.......................--................-.....
Photograph by Brian Connelly
The Stevens Creek Rock Quarry is on Foothill Boulevard in Cupertino near the
Stevens Creek Reservoir.
State geology board queries
quarries on la-ws' compliance
By HUGH BIGGAR
A state review found two Cupertino
quarries to be among nine Santa Clara
County quarries out of compliance with
California's surface mining laws.
The review, conducted by the state
Mining and Geology Board, sharply crit-
icized the county's oversight of the nine
quarries, saying there is "little evidence
in the administrative record demonstrat-
ing that the county has the understand-
ing or will to enforce state regulations."
The state initiated the audit after
receiving complaints from neighbors of
the Lexington Quarry in Los Gatos:The
neighbors had concerns about environ-
mental threats from Lexington's sur-
face mining. The state's geology board
conducted a review of the county's
quarries and also found problems at the
Stevens Creek and Hanson Permanente
quarries in Cupertino.
At Hanson Permanente in the hills
overlooking Cupertino, the state foUnd
the quarry did not set aside enough
money to pay for cleanup, ignored sta-
bility issues along the rim of a 1,000-foot
mine pit that could lead to landslides
and encroached on adjacent property.
Nelson Ferreira, plant manager for
Hanson Permanente, said these issues
are still being assessed. "Our position is
these are possible minor violations, and
we are going to submit a request for a
new reclamation plan in the next six
months," Ferrira said, while adding the
current plan dates from 1985 and is set
to expire in 2010. "After submitting the
new plan we can address these possible
violations," he said.
At Stevens Creek on Stevens
Canyon Road, the state also found pos-
sible compliance problems including
land encroachment beyond the recla-
mation area and inad~quate replanting
of mined slopes.
"At both Cupertino sites there were
disturbances in areas outside of the areas
of where they were allowed to operate,"
said Mark Oldfield, a spokesman with
the state's department of conservation.
The county, though, said this is hot yet
certain.
"Some of this is in dispute," said Val
Alexeeff, director of planning and
development for Santa Clara County.
"For instance, Hanson Permanente has
had a cement plant permitted since
1939 and now they are saying it exceeds
reclamation\ boundaries."
Even so, Alexeeff says the county
could have done better in. overseeing
the quarries.
"We weren't as strict as we needed to
be and the state has become stricter
and wants compliance," he said.
The state's report put it more harshly,
saying, "There was an unwillingness to
issue notices of violation [and] orders to
comply... for any of the sites."
As a result, the state's geology board
could take over quarry oversight from
the county unless it makes changes. A
hearing has been set for Sept. 14 to
assess progress.
"It's my priority for the next month,"
Alexeeff said.
D/!( - 33
~an :IFrancisco ([~ronidt
BAY AREA
A N D.
CALIFORNIA
9,
*****
SECTION
o
Thursday,
May 25, 2006
'The region's cities and counties wust work together to focus development in
eXisting urbanized, areas and to improve transit access and housing afford ability."
"
Bay Area
lands
at risk
against
sprawl
By Patrick Hoge
CHRONICLE STAFF WRITER
More than 400,000 acres of Bay Area..
the equivalent to 13 San Francis
could be paved over during the n
years if local governments do not act to co ",
sprawl, a Greenbelt Alliance survey to be rele '
today warns.
The report was immediately criticized as
by the Home Builders Association of Northern Cali-
fornia, which said most of the region remains unde-
veloped, and poiicies that limit growth have made
the region's housing prices unaffordable for too
many.
Both sides agree that the Bay Area's population is
expected to grow dramatically, by as much as 1.7
million people by 2030.
How to accommodate those new people is in ms-
~ eRJ:J:fda.~1 T- PruYO R'#
II High risk: 125,200 acres
likely to be developed in
the next 10 years.
Buildable terrain, close to
urban areas and
transportation, designated
for development in a city
or county general plan or
the subject of develop-
ment speculation.
. Medium risk: 276,200
acres likely to be
developed in the next 10
to 30 years. Same
factors, but to a lesser
degree. Generally farther
from urban areas,
[J Low risk: 2:29 million
acres not likely to be
developed in the next 30
years. Either protected by
long term policies or
physically not cpnducive
to development.
CJ Urban: Areas were
defined as urban if they
had a density of at least
one residential unit per
1.5 acres, or the
equivalent density of
commercial or industrial
development.
BJ Protected
D(~ -3tf
"--
David Reid of Greenbelt Alliance stands on undeveloped bayside land near Pt. Molate in Contra Costa County.
FREDERIC LARSON / The Chronicle I
Report says 400,000 acres could be developed
~ GREENBELT
From Page Bl
pute, with groups such as the
. Greenbelt Alliance hoping to
steer growth as much as possible
to urban areas and developers
saying the available land supply is
not nearly adequate.
Tom Steinbach, the Greenbelt
Alliance's executive director, said
the good news is that anti-sprawl
policies adopted by local jurisdic-
tions helped to reduce the
amount of "threatened" land by
13 percent, or 62,000 acr~s, since
the group's last survey in 2000.
Also on the positive SIde, the
report says, is that 1,007,200 acres
of open space are now perma-
nently protected from develop-
ment, a 27 percent increase since
2000. Such land is protected by
land trusts and state parks, and
the sale of development rights for
conservation purposes.
"The region is doing better
than it was in 2000, but 400,000
acres is still an enormous amount
of land at risk," Steinbach said.
There is a total of nearly 4.5
million acres in the Bay Area, of
which 761,400 acres are urbaniz-
ed, according to the report. The
Alliance surveyed San Francisco,
Marin, Sonoma, Napa, Solano,
ContJ;a Costa, Alameda, Santa
Clara and San Mateo counties.
Continued sprawl will worsen
traffic, consume open space and
make housing more unafford-
able, the Greenbelt Alliance con-
tends
Areas were defined as urban
using maps from the state's Farm-
land Mapping and Monitoring
Project if they had a density of at
least one residential unit per 1.5
acres, or the equivalent density of
commercial or industrial devel-
opment, said Greenbelt Alliance
spokeswoman Elizabeth Stampe.
The report said that 125,200
acres of open space is at "high
risk" of development in the next
10 years. and 276,200 more acres
is at "medium risk" of develop-
ment ill the next 10 and 30 years.
The 'I\lliance defined "high
risk" a~ land close to urban areas
and transportation designated for
development. Land at medium
risk has the same factors but is
generally farIDer from urban
areas.
About 2.29 million acres are
n9t likely to be developed in the
next 30 years because of long-
term policies or because the land
is not conducive to development.
Greenbelt Alliance applauded
conservation policies such as the
urban limit lines adopted by Ala-
meda and Contra Costa counties,
and the cities of Benicia, Fair-
field, Rohnert Park, Sonoma and
San Jose. Some Bay Area commu-
nities confront sprawl by impos-
ing boundaries on growth with
the idea of halting growth at the
edge of a community and turning
it inward.
"If the Bay Area is to accom:
modate growth sustainably, IDe
region's cities and counties must
work together to focus develop-
ment in existing urbanized areas
and to improve transit access and
housing affordability," the report
states.
Joseph Perkins, president of
the Homebuilders Association of
Northern California, expressed
exasperation when told of IDe
Greenbelt Alliance report.
"I have a fundamental prob-
lem with urban limit lines. They
artificially restrict land use, which
makes it more difficult to build
affordable housing," Perkins said.
Developing 125,200 acres over
the next 10 years - as Greenbelt
Alliance fears will probably hap-
pen - would be perfectly accept-
able, he said.
''That's really not a horrible
thing given what kind of growth
we can expect," Perkins said.
Perkins cited a 2005 study by
John Landis, chair of the city
planning department at DC
Berkeley, that found that urban
infill alone can accommodate on-
ly a quarter of the growth antici-
pated in the state, with fewer op-
portunities in the Bay Area than
in Southern California.
"The fact is we are going to
continue to build in suburbia to
meet the demands of the region's
growing population and growing
employment base," he said.
The alliance's survey showed
that the greatest pressure to de-
velop open space has shifted for
the first time to Solano County,
followed by Sonoma County,
Contra Costa County and Santa
Clara County.
Coincidentally, the Santa Cla-
ra County registrar of voters an-
nounced Wednesday that backers
of an open space protection initia-
tive appeared to have collected
enough valid signatures to put
their measure on the November
ballot.
E-mail Patrick Hoge at phoge@
sfchronicle.com.
'j)(t2 "35
THURSDAY, MAY 25,2006
*****.
~an :ii-ancisco (i~ronidt 83
BAY AREA
I DlrU.Ulnt..n
IIERCULES
Wal-Mart pledges to fight eminent domain action in court
By Patrick Hoge
CHRONICLE STAFF WRITER
Wal-Mart Stores Inc. promised
Wednesday to fight the city of
Hercules in court if the city's rede-
velopment agency follows
through on its plan to use emi-
nent domain to take 17.27 acres of
land from the nation's largest re-
tailer.
"That would be the next step,
to challenge it legally," Wal-Mart
spokesman Kevin Loscotoff said of
the Hercules City Council's reso-
lution, adopted unanimously,
Tuesday night, authorizing the
use of eminent domain.
"Our position is that it's
wrong," Loscotoff said. "It would
mean there's virtually no limit on
government's ability to take pri-
vate property through eminent
domain."
Hercules officials showed no
signs of backing down. They said
Wal-Mart repeatedly put forth an
inappropriate proposal after buy-
ing property that for years had
been part of a complex redevelop-
ment project aimed at turning a
blighted former dynamite plant
into pedestrian-oriented residen-
tial and commercial neighbor-
hoods.
When Wal-Mart bought land
near San Pablo Bay in November,
the city already had clearly artic-
ulated plans produced with exten-
sive citizen input that called for a
neighborhood shopping center of
relatively small stores, said Gale
Connor, a San Francisco attorney
hired by the city to handle the an-
ticipated eminent domain litiga-
tion.
"The plans were actually very,
very specific," Connor said.
Wal-Mart, nevertheless, pre-
sented three separate proposals,
one with the previous landowner
Courtesy Berg Davis Prlblic Affairs
This artist's rendering shows the BaySide Marketplace shopping center that Wal-Mart is proposing to build in Hercules.
and two on its own, each with a.
Wal-Mart store that exceeded
what the city had approved.
Wal-Mart's latest proposal, sub-
mitted March 31, calls for a shop-
ping center with a 100,000-square-
foot main store, although the city
previously said the largest store on
the site should be 64,000 square
feet. The proposed store would
have Craftsman-style architectur-
al details, a pedestrian plaza and
two outdoor eating areas, and it
would present a "villagelike" at-
mosphere, the company said.
Numerous people testified
against the Wal-Mart proposal at
the City Council meeting Tues-
day night, saying the design did
not fit the community's desires
and excoriating the company's
business practices. A smaller num-
ber of people spoke in favor of
Wal-Mart, saying they wanted the
convenience and low prices and
for their tax dollars to stay in their
city instead of going to neighbor-
ing cities that have Wal-Marts.
Lawyers for Wal-Mart argned
that the council, acting as the Re-
development Agency, was acting
unjustly because the city had not
given the company's latest pro-
posal a thorough evaluation.
Connor countered that a big-
box discount store of any kind at
the site would undermine inter-
locking plans that have already
produced hundreds of old-fash-
ioned homes across Refugio
Creek, and which call for a mixed-
use village of high-density homes
and shops in the nearby water-
front district.
"This parcel is one piece of a
much bigger development puz-
zle," Connor said.
Not only would Wal-Mart be a
draw for people outside the com-
munity, which would cause traffic
problems, but it would under-
mine .the 'economic assumptions
for the nearby retail plans, he said.
Indeed; a representative of Oso
Trabuco LLC, the company that
owns the land along the adjacent
waterfront, told The Chronicle re-
cently that plans for the area have
been on hold until it is known
whether Wal-Mart is coming, be-
cause the company's impact on
the retail environment would be
so profound that the commercial
component of the project would
likely be cut.
Steve Lawton, Hercules Com-
munity Development director,
said Wednesday that the city Re-
development Agency is using emi-
nent domain to ensure that the
waterfront area does not stagnate
and develops as planned.
"We're trYing to ward off urban
blight," he said.
Lawton said the city is on the
verge of committing to financing
$19 million of infrastructure im-
provements on the waterfront that
include moving train tracks and
building a ferry terminal, he said.
A city appraisal of Wal-Mart's
17 acres has put the value of the
land at about $15 million. What
"fair market value" the city would
actually have to pay, however,
would be determined by a jury,
Connor said.
E-mail Patrick Hoge at
phoge@sfchronicle.coin.
P,R -3lo
~t
City raises
fines for
illegal tree
removal
By Jank:e Rombeek
Mercury News
Sending. a message to resi-
dents that trees are important
to the quality of life in San Jo-
se, the city council voted
unanimously Tuesday to sig-
nificantly raise fines for peo-
ple who repeatedly cut down
trees illegally.
The new fines, effective July
7, will also go up for first-time
SAN JOSE
offenders. But they will eS,calate
sharply for property owners
and tree service companies that
break the rules more than once
in three years.
For example, illegally cutting
down a tree in a park strip with
a diameter of 24 inches current-
ly carries a $500 fine. With the
council's action Tuesday, the
homeowner and the tree com-
pany hired to do the work could
each be fined $2,000 for the
first violation. The second of-
fense within three years would
See TREES, Page 7B
~i
.\l..l' ,
'(.\;",,,'
cost $4,000 and the third,
$6,000.
While getting wide support
from neighborhood groups and
the non-profit Our City Forest,
the proposal drew - criticism
froll). resident John Engell, re- 18-inch to 23.9-inch diameter street tree:
presenting the Campus Com- $1.500, $3,000 and $4,500.
munity Association.
"The fines are still far too low
for the values of those trees," he
said. "Far too low in terms of
the quality of life in the city and
far too low in tenus of the deg-
radation that occurs when trees
are cut down illegally."
Councilwoman Linda Le-
Zotte. agreed; but added, "I
don't know if we could make
them high enough. For some Source: City of San Jose
people, it's the cost of doing
business or they really don't
know" the rules.
Permits are required to cut
down park strip trees - in the
area. between the street and
sidewalk - and for private
property trees with a circum-
ference of at least 56 inches.
Permits are free for street
trees, and cost about $200 for
private property trees. That fee
pays for notices that are posted
on the trees to let neighbors
know they may be cut down
and how they can protest.
The stepped-up effort to pre-
serve the city's urban forest
comes after residents in older
neighborhoods complained that
unlicensed tree removal compa-
nies were being hired to take
out large trees without city ap-
proval. The issue was brought
to the council's attention by
Councilman Ken Yeager, whose
district includes tree-lined
neighborhoods such as Willow
Glen and the Rose Garden.
In some cases, residents re-
ported that developers of in-fill
housing were removing trees
because they were in the way of
construction. In other cases,
the trees were considered by
homeowners to be too difficult
to maintain or their roots had
caused sidewalks to crack. In
I.
Local News
TREES I Fines
for removal
will go up
Continued from Page IE
WEDNESDAY, MAY 24, 2006
SAN JOSE MERCURY NEWS
HIGHER FINES START JULY 7
The San Jose City Council voted to raise
fines for illegally cutting down trees and
increase the penalties for repeat
offenses. Fines can be imposed on
property ovvners as well as tree service
companies. .
Less than 6-inch diameter street tree:
$500 for first violation, $1.000 for
second and $1.500 for third within three
years.
6- to 11.9-inch diameter street tree:
$750, $1.500 and $2,500.
12-inch to 17.9-inch diameter street tree:
$1.000, $2,000 and $3,000.
24 inches or greater in diameter street
tree: $2,000, HOOO and $6,000.
18-inch to 24-inch (56-inch
circumference) private property tree:
$1.500, $3,000, $4,500.
24-inch or greater diameter (75-inch or
greater circumference) private property
tree: $2,000, $4,000 and $6,000.
Heritage tree: $10,000, $20,000 and
$30,000.
most cases, city official say,
property owners didn't know
permits were required.
At Yeager's request, the
council also voted Tuesday to
ask city officials to take other
actions, including:
. Explore creating a hotline
for people to report illegal tree
removal. Currently, reports on
private trees go to the code en-
forcement department and
street trees to the transporta-
tion department.
. Look at restoring a techni-
cian position proposed to be cut
from the arborist's office in the
2006-07 budget.
. Consider using some of the
revenue from the new fines, es-
timated at $30,000 to $100,000,
to help property o~ers pay for
,permits to legally cut trees.
IF YOU'RE INTERESTED
For more information, contact the city
arborist at (408) 277-2762 or arbor-
ist@sanjoseca.gov, or the city's code
enforcement department at (408)
277A528. To report an illegal tree re-
moval in progress, contact the city's
24-hour Customer Service Call Center
at (408) 535-3500.
Contact Janice Rombeek at
jrombeck@mercurynews.com or
(408) 275-0917.
D(12 -37