Director's Report
CITY OF CUPERTINO
10300 TORRE AVENUE, CUPERTINO, CALIFORNIA 95014
DEPARTMENT OF COMMUNITY DEVELOPMENT
Subject: Report of the Community Development Direct~
Planning Commission Agenda Date: Tuesday, November 14, 2006
The City Council met on November 6, 2006, and discussed the following items of interest
to the Planning Commission:
1. Authorize the Mayor to send a letter on behalf of the City council supporting the
proposed Regional Housing Needs Allocation (RHNA) formula from the
Association of Bay Area Governments (ABAG) (see attached staff report)
Miscellaneous:
North Vallco Community Workshop .
The first North Vallco Master Plan Study is set for Thursday, January 25, 2007, 7:00 PM,
located at the Community Hall. A 20-person Study Committee was convened by the City
Council to oversee the study and make recommendations to the Planning Commission and
City Council. All Cupertino residents and interested persons are invited to participate.
Enclosures:
Staff Report
North Vallco Community Workshop Scene Article
Newspaper Articles
G:\ Planning \ SteveP\ Director's Report \ 2006 \pdl1-14-06.doc
t)lk'-l
10300 Torre Avenue
Cupertino, CA 95014
(408) 777-3308
FAX (408) 777-3333
CITY OF
CUPEIQINO
Community Development Department
SUMMARY
AGENDA NO. ;25
AGENDA DATE: November 6. 2006
SUBJECT:
Authorize the Mayor to send a letter on behalf of the City Council supporting the proposed
Association of Bay Area Governments (ABAG) Regional Housing Needs Allocation (RHNA)
formula.
RECOMMENDATION:
Staff recommends that the Council authorize the Mayor to forward the attached letter supporting
the formula developed by the Regional Housing Needs Allocation (RHNA) Committee. The
formula allocates housing units based on housing unit growth, existing and projected jobs and
projected growth around transit stations. The growth numbers are based on Projections 2007,
which significantly reduced the projected job .generation in Cupertino.
BACKGROUND:
Every seven years the Association of Bay Area Governments (ABAG) conducts a process to
allocate the fair share of housing growth to jurisdictions in the nine-county Bay Area region. The
current effort represents the fourth RHNA cycle. The Director of Community Development was
one of three representatives from Santa Clara County who participated on the Regional Housing
Needs Allocation Committee, along with Laurel Prevetti, Deputy Director of Planning for San
Jose and Regina Brisco, a Housing Planner for Gilroy. .
DISCUSSION:
The Regional Housing Needs Allocation Committee formula allocates housing units based on
housing unit growth, existing and projected jobs and projected growth around transit stations.
The growth. numbers are based on Projections 2007, which significantly reduced the projected
job generation in Cupertino. The combination of the formula and the revised projections 2007
housing and job growth, results in an allocation to Cupertino of 1.084 housing units versus 2.720
units allocated in the previous RHNA process.
Attached are the allocations under the RHNA Committee formula. The column on the left
outlines a potential allocation for all cities assuming the allocation from the State for the nine
. County Bay Area is the same as the previous RHNA process, which was 230,743 housing units.
The final number from the State could be higher or lower. Santa Clara County historically gets
-p,,e ~
Authorize the Mayor to,send a letter on behalf of the City Council supportinq the proposed Association of
Bay Area Governments (ABAG) Reqional Housinq Needs Allocation (RHNA) formula.
November 6, 2006
Page 2
the highest allocation at around 25% of the regional total or about 58,000 units based on the
previous allocation. The column on the far right represents the number allocated in the last
RHNA process.
ProDosed Formula
The formula recommended by the RHNA committee is based on:
f) 40% projected housing growth
. 20% existing jobs as of 2007
. 20% projected job growth between 2007 and 2014
. 10% job growth within 1/2 mile of a transit stop
. 10% housing growth within 1/2 mile of a transit stop
The number allocated is a function of the formula and the projected number of job and housing
growth by Projections 2007. Planning staff, particularly Senior Planner Peter Gilli, worked
extensively with ABAG projections staff to realistically count jobs and get the number of
housing units to reflect recent growth and annexations. Consequently, the job numbers dropped
about 8,000 jobs from past projections and the number ofhousmg units increased to reflect
annexations and new housing units. Cupertino's numbers in Projections 2007 are much closer to
a jobs/housing balance than previous projections. Enclosed is an ABAG staff memo dated
October 17, 2006 "RHNA Allocation Methodology Scenarios - Round 2" which provides more
explanation on the different formulas and factors.
Next SteDs
The RHNA Committee recommendation goes to the ABAG Executive Board on November 16,
2006. City Manager David Knapp sits on the ABAG Executive Board. The ABAG Board has
until December 31, 2006, to adopt the final formula after which there is a 60-day public comment
period before it becomes effective. Following ABAG adoption of the formula the State needs to
issue the final number of housing units to the nine-county ABAG region which is expected
before March 2007. At that time we will know our final fair-share number.
Agencies taking a higher allocation, particularly San: Francisco and San Jose and some of the
smaller agencies With higher numbers such as Palo Alto, may lobby for a formula that is more
favorable to them. Also~ the fmal numbers from the State have not come down so the numbers
could grow regardless of the final formula This allocation applies to the period 2007 through
2014, at which point ABAG will go through this process again.
After the ABAG Exec Board and State actions we will know the new numbers for the GP. Even
so, the number of housing units is likely to increase a little over the number currently in the GP
because these numbers are for the period 2007-2014 and are over and above our previous fair-
share allocation. After all of the above it will be appropriate to amend the GP Housing Element.
We will spend late 2007 through 2008 going through the public hearing process. Final amended
Housing Elements are due in the ABAG region before June 2009.
V 1K2 - 3
Authorize the Mayor to send a letter on behalf of the City Council supportinq the proposed Association of
Bay Area Governments (ABAG) ReQional HousinQ Needs Allocation (RHNA) formula.
November 6, 2006
Page 3
Submitted by:
Approved for submission:
(/) ./'\
~
. I L
\ \ ...
\ .' :/r//..
si e' Piasec '.
Director of Community Development
~
David W. Knapp
City Manager
Enclosures:
Draft letter supporting the RHNA Committee Allocation Formula
Allocation tables for bay area cities with the Committee Proposal
ABAG Staff memo dated October 17, 2006 "RHNA Allocation Methodology Scenarios - Round 2"
1) 112. -4
Office of the Mayor
10300 Torre Avenue
Cupertino, CA 95014
(408) 777-3212
CITY OF
CUPEIUINO
November 6, 2006
ABAG Executive Committee
Association of Bay Area Governments
P.O. Box 2050
Oakland, CA 94604-2050
Subject: Support for the RHNA Committee allocation formula
Dear ABAG Executive Committee Members
The Cupertino City Council is pleased to support the allocation formula developed by the
Regional Housing Needs Allocation (RHNA) Committee. The RHNA Committee spent
the past six months going over the options and discussing reasonable methodologies to
allocate housing units.
The formula allocates a fair share of housing based on where growth has occurred in the
past and where growth is projected to occur in accordance with Projections 2007 and the
factors in the State statute. The formula for the fIrst time, allocates a portion of the
housing based on smart growth principles by encouraging growth near transit stations.
The Bay Area needs to direct growth along the transit corridors and discourage suburban
sprawl if we are going to limit congestion. The formula gives communities planning on
growth to choose smart growth by balancing job generation with housing units.
Thank you for the opportunity to participate and comment on the process.
Sincerely,
Richard Lowenthal
Mayor
PI'2 -5
Come to the North Vallco Community Workshop
All Cupertino residents and interested persons are invited to participate in the
first Community Workshop on the North ValIeo Master Plan Study, Thursday,
January 25, 2007, 7:00 PM, Community Hall, 10350 Torre Avenue. Please come to
learn about the study and share your ideas.
Cupertino is embarking on the preparation of a master plan for the North ValIeo
planning area. The 240-acre area is bounded by Homestead Road, Tantau
Avenue, 1-280 and Wolfe Road. It includes the 100-acre Hewlett Packard
campus, 50 acres being acquired by Apple Computer for a future second campus,
Cupertino Village shopping center, as well as hotel, residential and office
developments.
The Planning Commission and City Council initiated the master planning
process to proactively plan the area ahead of development proposals. The North
ValIeo area is subject to change, with the new Apple campus and conversion of
some industrial buildings to residential uses. The urban design firm of
Freedman, Tung and Bottomley will facilitate the Community Workshops,
identify opportunities and constraints in the area, and help develop conceptual
design standards for the area. A 20-person Study Committee was convened by
the City Council to oversee the study and make recommendations to the
Planning Commission and City Council.
Additional information is available by accessing Cupertino's website,
www.cupertino.org, or by contacting the Planning Department at
planning@cupertino.org or 777-3308.
G:planning/north valko master plan/scene article 11-7-06
PI R-{p
llll~ LI~l
26 THE BUSINESS JOURNAL
sanjose.bizjournals.com
NOVEMBER 3, 2006
A closer look
iI'
New proj~ts in the works
Major new retail GenteJli are COOling to the region.
Cupertino Square
t16 Million
The Plant .
646,000
640,000
iOO
SOURGE' COSTAR GROUP INC.
DlOOs! centers
The Hlllsdale Shopping Cenler in San Matoo and Stanford
Sho(J~ng Center inp,aJOAlto are the region's'oldMt. ~
terms of when theyliJlit opened. .'
"- " .
HiIIsllaleShoppingCenter ...... ';'.'1954
i';,...,,;:.,_.,"..., ,u
.',..... .,....:...... -/": -:."_,', :"':'i.<,_'
'. :j__ :_-:;:::.- 'i ":::~i::':' :::1
Stanford ShopPing Center: . . . .. .. .. 1956
,-. '- ',' :.~:,
Westgate MaR................. .d960
,..,..,....-....--,. . .....-.'c
Del M\mte Center . .. . .. . .. 7 ..
AlmlldenPlaza
Shopping Center
f I '... .
f , ,.. { i1
;/ ~ < '", I > '"
Sunnyvale Town Center, ranked No. 16
on our 2004 list of retan centers with
296,000 square fee~ is under renova-
tion. The center is scheduled to reopen
in spring 2008 with 1.08 million square
feet.
Retail Centers
In Silicon Valley* - ranked by gross leasable area"
Center name Gro..
Addre.. leasable .reel
Rank Phon.. Web eddren number of store. Ve.r buUt
1 W.stfle.lltV.lIeyFair~.II_,_-.-_::_" ',,'.. -':'-",:_, ,'-1.5mlllion- 1986
. ,',~--:-28,55- Stevens c::reek,'BI,!"d., Surte 2178, Santa Clara 95050 270 '
: :::,4()8-248_-4450, wwy!,w~~eld.c_c)(n.ivalleyfair
2 Stanford Shopping Center
660 Stanford Shopping Center, Palo Alto 94304
850-617-8202. www.stanfordshop.com
3 ,_~t:r::~I't~o~~'_-S~.i_i~:~~ :sanJO~e:951~
408~~~-3600; ~.8astr;"dgecentBr.com
1.38 mlllion
150
4 ::;~tr:~I~a" Drive, Milpitas 95035
408-945-4022, www.greatmallbayarea.com
5' Ori:hard_F"'rmsShopplng Center -: .
_,,:~~64_Bl:)lIinger,Ro_ad, Sal'.lJosB 95129
4Illi-282-3862 "
Anchor stores
Macy's, NOi"dstrcnri
Ownerl
le.slng company contact/
phone
Westfield Corp._:~-
Kristeri;Pa sh" .:;'~
,)10-5~s..6037> ;
Simon Property Group Inc.
Robb Cox
310-820-5008
-.Gener81_Gr~~-.Prope~ii8In.c.
l3abett~.lsrawi
818-459-6839
1956
Bloomingdale's, Macy's, Neiman Marcus,
Nordstrom
1971
JCPenney; Macy's. Sears
1.3miltion
250
The Mills Corp.
Jennifer Smilh
40a-945-4022
1.22 million
26
1200
6 ~:"~7~:s~:~~~:o~:,lIsuite 2005, San Jose 95120
408-578-2912. www.westfield.com
". 7 .:'~i~~!.~i':~.~~:t~'
~a54':8222;' www.hUlsdale..com
8 ~O:~::::~IMall, Newark 945'60
510-794-5522, www.newperkmall.com
8~6:~D~~~::_:::, :C:upeffino 95014
408.255~5660. www.vallcomell.com_
1 0 ~9~':~i::~d~:I~all. Salinas 93906
8,31-449-7227, www.shop-northridge-mall.com
864,072
124
1.2 million
200
1.18 million
130
1.14 million
150
1.14 million
80
11
Pecheco PaSseenlef
Highway 152 at Camino Anoyo, Gilroy 95020
408'282-3960
706.554
36
67
12 ~4a;:~~ ~:~~~~,I~:':inas 93906
831-655-3800, www.hardenranchplaza.com
13 ~:llo~:~:'~~t:l~renter" Monterey 93940
831~373-27D5, www.deltnontecenter.com
14 :~~~~:~~ri:~:~ S~~i~:: 93906
831-449-2475
15 w.sto.te Man
1600 Saratoga Ave., San Jose '95129
4O~-551~'4600 www.shopsatw_estgatemall.com
16 ~::~t:ll~~:~I~, Capitola 95010
831~476.9616, WVIoW.shopcapltolamall.com
17" :~:~::'':=~~~:.~::roy 95020
409-842~3729( lIVWW.pramlumoutlets.com
18 ::a":Bnn~aRno8wRow. Suite 1020, San Jose 95128
408-551-4600, WWW.S8ntenarow.com
19 :~:~.~:;::~:;::s::.~~n:~rJ0ge 95118
408-264-376&, www.almadenplaza.com
20 :~~::= ::bo~:~~~';,t:~emont 94538
510-792-1720. www.thafremonthub.com
::: 21ti~~O,.'- Landin.lti.tJ.nEI'IIa~inm~nt ,c.Dt_er' . .
;, ... :.,:... ~2100~;i2450AlvB_radoNnes:_Ro.d,-Union Cfty!i4'587
" ,5.1~4~1's,oal
22 :~I~e~:-:~~e~~~:~nh~~~~~l and 152. Gilroy 95020
925-279-5567
504,904
83
699,024
60
678.358
90
650,000
47
648,000
65
586,595
100
575.000
145
563,000
124
580.000
47
1994
Burlington Coat Factory, Century Theatres,
MarshaUs, Sears Outlet, SportMart
1970
Marchese: Properties
John'Machado
408:282"3862
Westfield Corp.
Stuart Bailey
408-578-2912
"'-BQh8'nn~n-peVllloprilentCQ.' .
EdWard Plant,Co.
415-421-8098
Rite Aid. Safeway
2003
Macy's, Sears, Target
1954
Macy's. Mervyns,.Nords~rom, S~a~
1980
JCPenney. Sears, Target
General Growth Properties Inc.
a abette Israwi
aI8-459-6839
Landmark',Properties
Michael Rohde
408-7n-3081
1976
JCPenn~v,._Mapy's, _Sears
1972
JCPenney, Macy's, Mervyns. Sears
The Macerich Co.
Tracey Davis
925-939-7601
Multiple
Tom Nelson
408-282.3960
2003
.Best Buy. Costeo, linens-n-Things,.Lowes,..Super
Wal-Mart
1990
..
Sed Bath & Beyond. Circuit City, Home Depot,
MarshaUs, Office Depot, Safeway, Target
Walgresns ~
Macy's. Mervyns
American Assets Inc.
Chris Sullivan
858-350.2584
R.R.P. Development Co. Inc.
Fred Goldsmith
831-855-3800
1967
1997
Albertsons, Costco, OfficeMax, Wel-Mart
Sammut Brothers ~ev~lopment
Alan Sammut
831-449.2475
1960
Bames and Noble, Burlington Coat Factory, Ross
Dress for Less, Safeway, Target
Federal ReettylnvestmentTrust
Shahram Mouss8vl
408-551.4679
1977
Gottschalks, Macy's, Mervyns, Sears
The Macerich Co.
Tracey Davis
925-939-7601
1989
Gap Outlet, Liz Claiborne, Nike, VF Factory Outlet Chelsea Property Group
Chelsea Property Group
873-228-6111
2002
Best Buy, Borders, CineArts Theatre, Container Federal Realty Investment Trust
Store, Crate and Barrel, . Chris Weilminster
301-99a-8255
Bed Bath & Beyond, Ross Dress forless Almaden Plaz8ShoppingCenter,lnc.
Jim Fletcher
415-3sg-7900
1967
Bed Bath & Beyond. Bordars Books & Music,
Longs Drug, MarshaUs, PetS mart, Safeway
Kimco Realty Corp.
Jaci Wilson
925-977-3450
DII2 -7
OCTOBER 27, 2006
. sanjose.bizjournals.com
The News
THE BUSINESS JOURNAL 5
Cupertino trying new approach to reach land use agreement
BY SHARON SIMONSON
ssirnonson@bizjournals.com
Apple Computer and Hewlett-Pack-
ard Co. have agreed to help the city of
Cupertino conceptualize the redevelop-
ment of 240 acres of prime industrial
property north of Interstate 280.
The land includes the proposed site of
Apple's new 50-acre headquarters and
an existing 96-acre, HP campus.
The company representatives will be
joined by 18 others - including local cit-
izens, school district workers and other
property owners in the same tract - on
what is being called the North Vallco
Master Plan Study Committee.
The site is the largest remaining in-
dustrial tract in the city of 50,000, ac-
cording to the chief of the local chamber
of commerce. Apple and HP are clearly
Cupertino's most important employers.
Ensuring that both companies' interests
are considered strongly in whatever the
community decides for the area is vital,
says Christine Giusiana, who is also on
the committee.
The initiative comes at the behest of
the head of the planning commission,
Marty Miller, who says he hopes the ap-
proach limits the strife that has plagued
Cupertino for the past two years. The
contention has centered on land use and
\j resident concerns that the community's
- well-respected schools are being over-
~ whelmed by too many new kids from too
_\... much new housing.
C}) "Cupertino has had no shortage of
conflict and controversy, and it's clear
that the process has not worked as well
as it should," Mr. Miller says.
The idea is to gather input upfront
from community members and prop-
erty owners about what should happen
in the area, so everyone can agree on a
framework for change.
"The Apple proposal is going to be a
very large project for. Cupertino, and
this should be helpful to the company in
terms of what they come up with," Mr.
'Cupertino has had
no shortage of conflict and
controversy, and it's clear that the
process has- not worked as well
as it should,'
Marty Miller
Cupertino Planning Commission
Miller says.
The company has not yet filed plans
with the city. A call to the company's
manager of state and local government
affairs, Michael Foulkes, was not re-
turned. Mr. Foulkes is also on the study
committee.
An HP spokesman says HP believes
its long-term interests lie in being in-
volved with the land-planning effort. He .
did not say if HP has plans to expand or
reconfigure its 96-acre Cupertino cam-
pus, but he did say the company has en-
titlements for up to 150,000 square feet
of additional office space. He declined
to say how many people work there,
though the campus is about 1.5 million
square feet, enough space for roughly
5,000 people.
Several property owners in the area
have submitted plans to the city to rede-
velop their holdings, mostly to convert
industrial buildings to housing. It is
also understood that the Cupertino Vil-
lage shopping center, which is also in
the area, will seek to expand.
The committee meetings will be ac-
companied by one-on-one sessions with
HP and Apple and a series of public.
hearings, Mr. Miller says.
The city has retained the former
Mountain View city manager, Bruce
Liedstrand, and a second consultant to
help it along. Mountain View conceived
its downtown redevelopment in much
the same way, Cupertino staff say, and
that project enjoyed broad community
support. The city of Cupertino has set
aside $100,000 to fund the project.
The enterprise comes against the
backdrop of Nov. 7 elections when Cu-
pertino voters, for the second year in a
row, will decide land-use issues tradi-
tionally handled by elected leaders.
This year, voters will decide the fate
of two proposed condominium projects
adjacent to the struggling Vallco Fash-
ion Park. The two developments would
add 517 new condos, though 80 would be
designated as below-market units for se-
niors and presumably would introduce
no new children to the community.
Last November, Cupertino voters de-
feated three initiatives seeking to set
strict development guidelines for the
town. Proponents said they were de-
signed to preserve Cupertino's suburban
character by limiting building height,
density and setback from streets.
The initiatives failed, though not by
. huge margins, and the fight leading up
to the vote was bitter.
Cupertino Mayor Richard Lowenthal
says he backs Mr. Miller's effort 100 per-
cent and hopes that it will help his town
to become less polarized.
"We are trying to build consensus
instead of fighting it out in the coun-
cil chambers and haVing these refer-
endums," he says. "We are sick of that
method."
Mr. Lowenthal is one of ijrree council
people who support the two housing
projects. Two members opposed.
Patty Chi, a local homemaker and
mother of young children who led the
charge to get the two referendums on
the ballot this year, says she, too, is tired
and would welcome a better process.
The planning committee sounds like
a good idea on its face, she says. But
the issue still comes down to council
actions.
"When I talk to people, lots of them
say that they feel the city council hears
them without listening," she says. "They
are not the same thing, you know."
SHARON SIMONSON covers real estate for the Business
Journal. Reach'her at (408) 299-1853,