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Director's Report CITY OF CUPERTINO 10300 TORRE AVENUE, CUPERTINO, CALIFORNIA 95014 DEPARTMENT OF COMMUNITY DEVELOPMENT Subject: Report of the Community Development Director Planning Commission Agenda Date: Tuesday, March 27, 2007 The City Council met on March 20, 2007, and discussed the following items of interest to the Planning Commission: 1. Peel's Coffee appeal: The City Council granted a temporary use permit to open at 5:30 a.m. and will review entire use permit in 6 months regarding parking and pedestrian access with Whole Foods (see attached staff report). 2. Appeal of a minor residential permit on Grenola Drive: The City Council upheld the appeal relating to the west balcony and denied the appeal relating to design and the east balcony. (see attached staff report) 3. Conduct the first of two public hearings regarding the use of fifth program year (2007-08) Community Development Block Grant (CDBG) funds and Human Service grants, and begin review of the 2007-08 Annual Action Plan. The City Council conducted the public hearing and continued the item to April 3. (see attached staff report) 4. Consider a code change regarding construction hours on Sundays. (see attached staff report) The City Council did not direct any changes to the regulations regarding construction hours. A complaint was lodged about neighborhood construction on Sundays. Staff presented data from Code Enforcement that there were 44 complaints about construction noise in a two-year period, and 14 of them were related to weekend construction noise. Given the small number of complaints and the repercussions to construction activities if hours were changed, no change was recommended. 5. Presentation from VaIlco Mike Rohde spoke under oral communications regarding progress at Vallco. He presented several slides on the AMC Theater; opening is scheduled on April 27 (see enclosed slides). Pt'<? -I 10300 Torre Avenue Cupertino, CA 95014 (408) 777-3308 FAX (408) 777-3333 CITY OF CUPERJINO Community Development Department SUMMARY /uGENDA ]\TO, AGENDA, JDJA TE _JvIarch2:0_L:2:0Q7 SUBJECT: Consider an appeal of the Planning Commission's decision to modify the use permit for Peet's Coffee to allow an opening time of 5:30 a.m., Application No. M-2006-07, Laura Thomas (Peet's Coffee), 20807 Stevens Creek Boulevard, APN 326-32-051. The appellant is Council member Richard Lowenthal. RECOMMENDATION: The City Council may take one of the following actions: 1. Uphold the appeal of M-2007-06 and deny the Planning Commission's decision; or 2. Uphold the appeal of M-2007-06 and modify the Planning Commission's decision; or 3. Deny the appeal and uphold the Planning Commission's decision; or 4. Continue the appeal to the April 3, 2007 City Council meeting. BACKGROUND: On January 9, 2007, the Planning Commission approved a modification to a use permit to allow Peet's Coffee to open at 5:30 a.m. Peet's Coffee is located in a building constructed in 2005 that is shared with Panera Bread. The building is located on a parcel on the north side of Stevens Creek Boulevard, west of Saich Way, that is part of the Stevens Creek Office Center. The Stevens Creek Office Center is also adjacent to the Whole Foods supermarket that is being constructed along Stevens Creek Boulevard to the west. On January 16, 2007, Council member Richard Lowenthal appealed M-2006-07 stating that the pedestrian circulation issue between the Stevens Creek Offi~e Center and Whole Foods needs to be resolved in conjunction with this application. DISCUSSION: When the adjacent Whole Foods project was approved by the City Council in January of 2006, the City Council required Whole Foods to incorporate a pedestrian access along the northeast corner of the site to accommodate a future pedestrian connection between the Whole Foods site and the Stevens Creek Office Center. Printed on Recycled Paper 1) fk:-3 M-2006-07 Appeal Page 2 March 20, 2007 Whole Foods is currently under construction and has nearly completed its portion of the pedestrian connection with a concrete pathway that runs along the north side of the Whole Foods building and steps down to a pad that is adjacent to the west side of the Stevens Creek Office Center. Whole Foods will also be installing a handicap lift to accommodate the grade differential between the pathway along the north side of the building and the pad adjacent to the Stevens Creek Office Center property. Council member Lowenthal is requesting that the Stevens Creek Office Center complete the pedestrian connection between these two sites by installing the improvenLents needed on the Stevens Creek Office Center for the pedestrian pathway in conjunction with the Peet's Coffee application. Staff has reviewed the possibility of incorporating these improvements that would require a pedestrian opening between the two properties, installation of a concrete pedestrian ramp and walkway connecting from the pad landing on the Whole Foods site to the west side of the Stevens Creek Office Center, and possibly handrails and a switch back of the ramp. This would result in the loss of at least one, but possibly two, parking spaces. If a slope of 1:20 can be achieved, then it appears a straight pedestrian ramp cart be constructed on the Stevens Creek Office Center side from the Whole Foods pad landing. If a 1:12 slope is required, then h~drails and a switchback of the ramp will be required, resulting in the loss of one additional space. On March 14,2007, staff received comments from the property owner, John Volckmann stating that he does not agree to the installation of the pedestrian connection arid will be attending tonight's meeting to speak about his concerns. Enclosures: Exhibit A: Appeal submitted by Richard Lowenthal Exhibit B: Planning Commission Resolution No. 6440 approving Peet's Coffee 5:30 a.m. opening Exhibit C: Minutes of the January 9, 2007 Planning Commission Meeting Exhibit D: Planning Commission staff report of January 9, 2007 wi attachments Exhibit E: Aerial photo Exhibit F: Whole Foods Plans ::::d ~:2Honda Snellmg, Semor PJann:pproved by: \ \ Ste ~ e PiaseCKi Director of Community Development David W. Knapp City Manager ;" l D/.<:: -L-{ ~~ .~~ CITY OF CUPEI\IINO 10300 Torre Avenue Cupertino, CA 95014 (408) 777-3308 FAX (408) 777-3333 Community Development Department SUMMARY AGENDA NOlo AGENDA DATE March20-,,2Q07 Property Owner: Property Location: Appeal ofR-2006-08 & RM-2006-13 Jessica Rose & John Tracy Elena Herrera & Subir Sengupta Mehrdad & Homa Mojgani 21180 Grenola. Avenue Application: Appellants: SUBJECT: Consider an appeal of the Planning Commission's decision to approve Application Nos. R-2006-08 and RM-2006-13, regarding a Residential Design Review and Minor Residential Permit to construct a new, two-story 4,219 square foot residence with two second-story rear yard balconies. Continued from the February 6th and March 6th City Council meetings. RECOMMENDATION: The City Council may take one of the following actions: 1. Uphold the appeals and deny the Planning Commission's approval of R-2006-08 and RM-2006-13; or 2. Uphold the appeals and modify the Planning Commission's approval of R-2006- 08 and RM-2006-13; or 3. Deny the appeals and uphold the Planning Commission's approval of R-2006-08 and RM-2006-13 4. Continue these appeals to the April 3, 2007 meeting. BACKGROUND: At the February 6th meeting, the City Council conducted a hearing on the two appeals and continued this item (5-0) to the March 6, 2007 meeting. The Council provided the following directions to the applicants, Mehrdqd and Homa Mojgani: Modify the plans to meet the City Council's understanding of reasonable mitigation of the privacy impacts of the master bedroom balcony. Work with the appellants to reach an agreement. Printed on Recycled Paper D(12 - 5 Appeals ofR-2006-08 & RM-2006-13 Page 2 March 20, 2007 On February 27, 2007, the applicants and appellants participated in a mediation process offered by the City with Project Sentinel as the independent mediator. Although Project Sentinel explained that the details of the mediation discussion could not be disclosed due to the confidentiality of the mediation process, Project Sentinel was able to convey that the parties were still not able to reach agreement. As a result, the applicants requested a continuance from the March 6th meeting to the March 20th meeting to allow them time to revise the plans and resubmit them to the City Council for review. On March 6th, the City Council continued this item on a 5-0 vote to the March 20th meeting. On March 9, the applicant submitted revised plans, including a revised first floor plan, elevations and privacy protection landscape plan. On March 13, the applicants also submitted the second-story floor plans showing the modified balcony. On March 14, the City received responses (See Exhibit D) from the appellants, John Tracy /Jessica Rose and Elena Herrera, on the revised plans. The appellants have indicated that the plans still do not address privacy impact concerns, particularly with respect to the revised balcony design and privacy protection landscaping, and request that both of the balconies be removed. DISCUSSION: During the February 6th City Council public hearings, the Council noted the privacy impact concerns of the appellants and requested that the applicants modify their plans by providing an adequate privacy protection landscape plan and mitigating the impacts of the master balcony by eliminating the balcony and providing a faux balcony ; recessing the balcony or creating a physical barrier that is architecturally compatible with the residence. The Council also stressed the importance that the applicants work with the appellants to reach agreement on the plans. Further, the Council stated that privacy protection landscaping plans alone would not be sufficient to mitigate the privacy impacts of the balcony. The Council also heard from several members of the public who expressed concerns about the privacy impacts of the balcony and supported the appellants. Revised Plans The revised plans include first- and second-story floor plans, elevations and a privacy protection landscape plan (See Exhibit A). Although the plans do not fully provide dimensions of the modified balcony, staff estimates that the balcony is approximately 13 feet in length and approximately 5 feet in depth. Based on these modified plans, the balcony has been lengthened from the previously proposed plans, but now includes a 4.5 foot high solid stucco wall along the west side of the balcony that attempts to address privacy impacts. The applicant also states that the balcony will be unlivable and unfurnishable. However, staff believes that the balcony will still impact privacy since ,- (' j) 1/2 -lo Appeals ofR-2006-08 & RM-2006-13 Page 3 March 20, 2007 ------------------- ------------------------ the solid stucco wall is only 4.5 feet high and the balcony still appears wide enough to allow a person to stand on it and look over the wall. Additionally, a revised privacy protection landscape plan has been submitted that provides pittosporum shrubs around the majority of the property, with the exception of a portion of the eastern side yard that includes two magnolia trees. The privacy protection plan does not include the box size of the magnolia trees to be planted and does not specify the particular species of the magnolia tree proposed. Should the Council approve this privacy protection landscape plan, stoff recornmends that the tree be a Southern Magnolia tree that is a minimum 24-inch box, 8-foot high tree at the time of planting. This is the type and size of magnolia tree that is on the City's approved privacy screening tree list. Staff Recommendation Staff has reviewed the plans and feels that the revised plans do not satisfy the Council's direction. Therefore, staff recommends that the City Council approve the residential design review and minor residential permit to allow construction of the two-story residence, including the balcony on the east side of the rear elevation, but eliminate the master bedroom balcony on the west side of the rear elevation. This will allow the applicants to continue with the construction of their residence. The applicants may re- apply for a ininor residential permit for a master bedroom balcony in the future if they wish to do so and are able to design a balcony that follows Council's direction. Enclosures: Exhibit A: Revised plans submitted March 9, 2007 and March 13,2007 Exhibit B: City Council Report of March 6, 2007 with attachments Exhibit C: Copy of the originally approved plans by the Director of Community Development on August 23,2006 Exhibit D: Responses from Jessica RoselJohn Tracy and Elena Herrera, the appellants Prepared by: Aki Honda Snelling, Senior Planner SUbmif by: , - ( ./. ~ Steve Piasecki Director of Community Development Approved by: g~ David W. Knapp City Manager G:planningjpdreportjappealsjR-2006-0S, March 20 CC Appeal Dft< - '1 CITY OF CUPEI\TINO Summar;! City of Cupertino 1 0300 Torre Avenue Cupertino, CA 95014 (408) 777-3308 FAX (408) 777-3333 Community Development Department Housing Services Agenda Date: March 20, 200?" Agenda Item Noo i "l Subject: First of two public hearings regarding the use of fifth program year (2007-08) Community Development Block Grant (CDBG) funds and Human Service grants, and begin review of the 2007 -08 Annual Action Plan. 2, Continue the final approval of the 2007-08 Annual Plan to April 4, 2007 so that a 30-day review period can be completed. CDBG Steering Committee Recommendation: The CDBG Steering Committee recommends that the City Council approve the following allocations for the use of the 2007-2008 CDBG program funds and Human Service Grants and begin review of the FY 2007-08 Annual Action Plan as required by the federal department of Housing and Urban Development (HUD). 2007-08 CDBG Allocation: Public Service Grants: CCS - Comprehensive Assistance Program CCS- Rotating Shelter Program Live Oak Adult Day Services - Senior Adult Day Care Second Harvest Food Bank - Operation Brown Bag Senior Adults Legal Assistance - Legal Assistance Construction! Acquisition/Rehab Unallocated Program Administration: Administration Eden Council for Hope and Opportunity - Fair Housing Services 2007-08 Affordable Housing Fund Allocation: CCS- Affordable Placement Program TOTAL: Recommendations: The following actions are recommended: 1. Open the public hearing for testimony from the non-profit agencies. $66,024 $16,435 $21,409 $14,720 $3,512 $9,948 $243,404 $243,404 $88,742 $79,919 $8,823 $65,000 $65,000 $463,170 o,,e ~ts 2007-08 Human Service Allocation: Catholic Charities - Long Term Care Ombudsman Community Technology Alliance CCS - Comprehensive Assistance Program Emergency Housing Consortium Outreach and Escort - Special Needs Transportation Support Network for Battered Women -Domestic Violence United IVay 2~ 1-1 Santa Clara County Tnfo1l11ation and Referral Service TOTAL: $3,187 $2,000 $17,601 $3,987 $7,115 $4,202 3;2,000 $40,092 Background: The City of Cupertino will receive a CDBG entitlement of approximately $400,312 for fiscal year 2007-08, plus a reallocation of $43,400 in projected program income from rehabilitation loan payoffs for a total of $443,712. The allocation represents an approximate 1 % increase in the entitlement from last fiscal year's allocation of $397,635. This is Cupertino's fifth year as an entitlement jurisdiction receiving the CDBG grant directly from HUD. HUD regulations require that projects selected for funding benefit very low and low-income households, eliminate a blight.ed area, or address an urgent (emergency) community need. In addition, only certain types of activities qualify under the CDBG regulations. Examples of eligible activities are: . Removal of barriers to the handicapped . Public improvements . Public service activities . Affordable housing developments . Property acquisition for affordable housing . Rehabilitation of affordable units Of the $443,712 (entitlement plus program income), $88,742 may be used for administration of the program and fair housing services and $66,567 may be used to fund public service activities. Federal regulations do not allow the city to use more than 15% of the combined total of the entitlement and projected program income for public service activities. Federal regulations also prohibit the use of more than 20% of the entitlement plus projected program income to be used for administration of the grant. Included in the program administration category are fair housing activities. Public service activities must benefit very low and low-income households and include activities such as childcare, placement services, senior legal services, etc. The remainder of the grant is available for activities such as the purchase of land for affordable housing, rehabilitation of qualifying units, construction of affordable units and public improvements in low and very-low income neighborhoods. Human Service Grant Allocation: Every year the City Council allocates $40,000 from the General Fund to human service agencies. Three years ago, the human service grants allocation process was combined with the CDBG allocation process. Formal agreements and monitoring of the agreements are now required for this program. The CDBG Steering Committee reviews the allocations at the same time as the CDBG allocations and makes recommendations to the City Council. These recommendations are usually addressed by the City Council during the budget cycle in April and May. D(R - (1 First of two public hearings regarding the use of fourth program year (2007-08) Community Development Block Grant (CDBG) funds and Human Service grants, and begin review of the 2007-08 Annual Action Plan. March 20, 2007 Pa2:e 3 of4 This year staff is proposing the Human Service Grant allocations be slightly increased to $40,092 to cover the cost of adding two programs, Community Technology Alliance and United Way of Silicon Valley's 2-1-1 Infonnation and RefelTal Service. The United Way of Silicon Valley did not submit a formal application, but instead sent a letter to the attention of the City Manager requesting $10,000. Since an application was not submitted, the CDBG Steering Committee did not review the request. Staff was informed of the letter after the CDBG Steering Committee meeting and felt that with a $92 increase in the Human Service Grants budget. the United \~Tay of Silicon Valley could be funded at the S;ii11C level :i~; Idsl Request for Proposals: In late January, staff distributed a Notice of Funding Administration (NOFA) to approximately 30 non- profit organizations. Exhibit B is the mailing list used for the NOF A. Out of those organizations, 12 proposals were received. With the exception of Long Tenn Care Ombudsman, Emergency Housing Consortium, Support Network for Battered Women, Outreach and Escort and Community Technology Alliance, all of the applicants are recommended to receive funding at the same level as last year. Due to budget constraints, staff does not recommend funding Community Technology Alliance's Homeless Management Infonnation System since it is not providing direct services to the homeless population. Staff is also proposing that Outreach and Escort, Emergency Housing Consortium, Support Network for Battered Women, Long Term Care Ombudsman and the remainder of the CCS Comprehensive Assistance Program be considered by the City Council for funding under the General Fund Human Service Grant Program. A brief descrip60n of each proposal along with staff recommendations is included in Exhibit A. Detailed information on each request is provided in the applications included with your packet. CDBG Steerinl! Committee: On April 4, 2006, the City Council approved a Citizen Participation Plan as part of its 2006-2009 Consolidated Plan. Prior to expending CDBG dollars, the City is required to have a Citizen Participation Plan, Consolidated Plan and an Annual Plan in place. As part of the original Citizen Participation Plan, adopted in February 2003, the City formed a CDBG Steering Committee. The Steering Committee is comprised of the Cupertino Housing Commission and the four appointed citizens. The CDBG Steering Committee's responsibility is to evaluate the proposals received and forward funding recommendations to the City Council. On March 8, 2007 the CDBG Steering Committee met and conducted a public hearing on the FY 2006- 07 CDBG funding allocation. The Committee heard presentations from all but two of the applicants and recommended the staff recommendation be forwarded to the City Council. Live Oak Adult Day Care and Community Technology Alliance were not present for the presentations. FY 2007-08 Annual Action Plan: Federal regulations require that each entitlement jurisdiction prepare an Annual Action Plan and submit the plan no later than May 15th of each year. The Annual Action Plan is a one-year plan which describes the eligible programs, projects and activities to be undertaken with funds expected during the program year (Fiscal Year 2007-2008) and their relationship to the priority housing, homeless and community development needs outlined in the approved Consolidated Plan. Furthermore, Federal H:\-CDBG\CDBG Funding Cylce Materials\CC Reports\CCCDBG.doc Ole-It> First of two public hearings regarding the use of fourth program year (2007-08) Community Development Block Grant (CDBG) funds and Human Service grants, and begin review of the 2007-08 Annual Action Plan. March 20, 2007 Pa2e 4 of 4 regulations require the plan be made available for 30 days for public review and comment. The FY 2007-2008 Annual Action Plan was released for public review on March 3, 2007 for the 30-day review period. A notice was placed in the local paper informing the public of its availability. On April 3, 2007, the City Council will hold a final public hearing to approve the Annual Action Plan for submittal to HUD. In addition, the CDBG Steering Committee reviewed the Annual Plan on March 8, 2007. PREPARED BY: APPROVED FOR SUBMITTAL: ~ Ste e Piasecki, Director of Community Development David W. Knapp City Manager Attachments: Exhibit A: Summary of Applications Exhibit B: CDBG Mailing List 2007-08 CDBG and Human Service Grant Applications Fiscal Year 2007-08 Annual Action Plan Applications for CDBG/Human Service funding United Way of Silicon Valley letter H:\-CDBG\CDBG Funding CyJce Materials\CC Reports\CCCDBG.doc DtQ-11 City of Cupertino 10300 Torre Avenue Cupertino, CA 95014 (408) 777-3308 Fax: (408) 777.,.3333 CITY CUPERJINO Community Development Department Summary Agenda Item No. _ Agenda Date: March 20, 2007 APPLICATION SUMMARY: Consider a code change regarding construction hours on Sundays. RECOMMENDATION: Staff recommends that the City Council retain the existing construction hours and not initiate a municipal code amendment. BACKGROUND: A resident contacted a City Council member, Richard Lowenthal, with concerns about construction noise from adjacent residential construction, related to noise impacts from construction on Sundays and the length of time being taken to complete the project. Mayor Wang agreed to include this as an agenda item for City Council discussion. DISCUSSION: Construction Noise The current Community Noise Control ordinance, which governs construction noise, is enclosed (Exhibit A). The key provisions related to construction noise in the neighborhoods are: . 10.48.010 Definitions: Daytime Defines daytime as the period from seven a.m. to eight p.m. on weekdays, nine a.m. to six p.m. on weekends. . 10.48.029 Homeowner or Resident-Conducted Construction Work Exception Allows homeowner lresident construction on a single dwelling on holidays. . 10.48.040 Daytime and Nighttime Maximum Noise Levels Establishes maximum allowed noise levels (dBA). . 10.48.050 Brief Daytime Incidents Allows the maximum allowed noise levels to be exceeded for brief periods. PIt< -IQ Application: Construction Noise Page 2 The Building Department provides a handout that defines construction hours, based on the noise ordinance (Exhibit B). Construction activity is confined to the daytime hours (7 a.m. to 8 p.m.), although there could be homeowner/resident construction or brief daytime incidents as described above. Construction on Sundays is allowed, within a shorter time period than weekdays (9 a.m. to 6 p.m.). Length of Building Construction The length of time a building can be under construction is based on the Uniform Building Code (DBC). The DBC requires a building inspection every 180 days or the building permit expires. While this requires maintaining a certain level of building activity, it does not limit the length of building construction. Staff requested information from other cities regarding any additional limitations they might impose, and received responses as shown in Exhibit C. Three cities, La Canada Flintridge, Claremont and Ross have regulations that limit the duration of a building permit. In contrast, a Sunnyvale report is referenced that states: "Staff did not recommend imposing any additional limits on the overall duration of construction or restricting construction hours for projects with a long duration. This is based on the minimal number of complaints received, low percentage of projects that are not complete within two years, and the additional staff time required to implement, administer and monitor projects. Cupertino's Code Enforcement Department responds to calls about construction noise. They report that for the two-year period between 1-1-05 to 1-1-07, they investigated 44 construction noise complaints. Of those 44 complaints, most of them relate to abuse of construction hours, of which 14 were for violations concerning appropriate weekend construction hours. Further limits on construction times could have significant repercussions to construction activity in Cupertino. Both homeowners who undertake construction projects on their homes and commercial construction projects could be affected. For example, Vallco has major projects under construction that could be adversely affected by modified construction hours. Given the relatively limited number of complaints, staff does not recommend that the City initiate changes at this time. DI12;/ ~ Office Space Property Avail. SF Rate/SF Terms Leasing Company Contact Phone 300 Orchard City Drive 20,728 $1.90 Full Service South Bay Development Paula Parisi (408) 796-0028 1901 S Bascom Ave 24,058 $2.85 Full Service Colliers International Carla Lindorff (408) 282-3908 910 Campisi Way 24,295 $2.65 Full Service South Bay Development Paula Parisi (408) 796-0028 900 E Hamilton Ave 44,143 $1.65 Net Cornish & Carey Commercial Todd Shaffer (408) 987-4144 2105 S Bascom Ave 53,425 N/A N/A Colliers International Susan Gregory (408) 282-3940 CUPERTINO 20450 Stevens Creek Blvd 12,790 $2.50 Net Cornish & Carey Commercial Todd Shaffer (408) 987-4144 10061 Bubb Road 14,500 N/A N/A Ritchie Commercial Gary Seiden (408) 282-8511 10050 N Wolfe Road 14,764 $2.75 Full Service CPS Corfac International Erik Hallgrimson (408) 615-3435 1340 De Anza Blvd 18,578 N/A N/A Borelli Investment Company Buddy Parsons (408) 453-4700 RESEARCH & DEVELOPMENT Property Avail. SF Rate/SF Terms leasing Company Contact Phone CAMPBELL 695 Campbell Technology Pky 2nd FI 10,412 $1.65 Net CPS Corfac International Steve Pace (408) 615-3400 603 Campbell Technology Pky 10,890 N/A N/A Colliers International Michael Rosendin (408) 282-3900 1359 Dell Ave 12,100 N/A N/A CPS Corfac International Steve Horton (408) 615-3400 1355 Dell Ave 12,758 N/A N/A CPS Corfac International Steve Horton (408) 615-3412 511 Division Street 17,210 $0.85 Net South Bay Development Paula Parisi (408) 796-0028 655 Campbell Technology Pky 21,562 $1.10 Net Cushman & Wakefield Roger Gage (408)572-4112 1300 White Oaks Road 30,000 $1.50 Net Cornish & Carey Commercial Samuel Wright (408) 987-4139 250 E Hacienda Ave 36,148 N/A N/A CPS Corfac International Steve Horton (408) 615-3400 Mcglincy Lane 64,232 N/A N/A CB Richard Ellis Scott Prosser (408) 453-7454 CUPERTINO 10440B Bubb Road 10,573 N/A N/A Mission West Properties Ray Marino (408) 725-0700 10670 N Tantau Ave 10,790 $1.75 Net Cornish & Carey Commercial Philip Mahoney (408) 982-8430 10381 Bandley Drive 12,748 $1.85 Net CB Richard Ellis Robert Steinbock (408) 453-7424 18922 Forge Drive 29,598 $1.75 Full Service Colliers International Jeff Rogers (408) 282-3919 10460 Bubb Road 31,403 N/A N/A Mission West Properties Ray Marino (408) 725-7632 10400 N Tantau Ave 45,600 $1.00 Net Cushman & Wakefield Scott Ennis (408) 572-4125 10200 N Tantau Ave 57,000 $1.85 Net CPS Corfac International Brandon Bain (408) 615-3416 10300 N Tantau Ave 100,650 $1.00 Net Cushman & Wakefield Scott Ennis (408) 572-4125 18880 Homestead Road 101,300 $2.25 Net Colliers International Gregg Von Thaden (408) 282-3915 FOSTER CITY 0 1125 E Hillsdale Blvd 11,640 N/A N/A Kaboli Real Estate Soroush Kaboli (650) 325-7891 - 384 Foster City Blvd 15,012 $0.99 Net CB Richard Ellis Crai9 McGahey (650) 494-5133 7'V \ J) ~~ "';flY I'~'" ,~: l ~ .. ~ ,.~~ .. " " - ,~. " r". " ~ ~" ~ 'I~ r.r,;~. . ".. '" "~ ... _ ~ ' COMMERCIAL SPACE". Cupertino's mall getting makeover along with. expansion BY BRAD BERTON sanjose@bizjournals.com A couple years from now, shoppers returning to Cupertino's Valko Fashion Park for the fIrst time may hardly recognize the place after some $200 million worth of multifaceted expansion and improvement projects. Construction types ranging from entertainment and eateries, to res- idential and even hospitality, underlie the long- struggling property's transformation from a traditional enclosed mall to more of a new-wave "lifestyle" center. More specifically, as Valko morphs into its new moniker Cupertino Square, visitors will be able to hit up a 12-merchant food court before or after catching a movie at the 16-screen cineplex. Residents of the repositioned development's coming condominium units, and guests of its two planned hotels, will also be able to grab a bite and a beer q.t the new-wave bowling center or any of several other new and future culinary offerings. Not counting the condos and hotels, the team, headed by Cupertino developers Alan Wong and Emily Chen, is in the process of expanding the 64-acre property's retail floor space (or gross leasable area) by roughly 30 percent, to well over 1.4 million square feet. More importantly, the magnetic new elements aim to inject some much-needed "wow factor" into the 30-year-old shopping center bisected by Wolfe Road just south of the Junipero Serra (1-280) Freeway, says Valko's longtime general manager Mike Rohde. Reflecting the general movement away from the traditional enclosed mall filled with stores and a few mundane restaurants, most ofthe na- tion's newer developments designed as lifestyle centers follow the "open-air" configuration, emulating downtown streetscapes. In addition to retail shops, they tend to go heavy on enter- tainment elements, including upscale themed restaurants and nightclubs. The Cupertino Square team is transforming Valko into something of a hybrid, retaining the roof over the L-shaped focal structure while in- tegrating peripheral buildings housing restau- rants and specialty merchants, and eventually housing in this case. Central to the transforma- tion - both literally and figuratively - is the long-anticipated 3,500-seat AMC Theatres mul- tiplex scheduled to open in late ApriL To house the cinema, crews from DPR Construction Inc. are adding an 80,500-square- foot, escalator-accessed third floor, essentially carved from of a portion of the two-level center's existing retail space. The new level also incor- porates the expanded central atrium, creating an entry to both the theaters and shopping area that Rohde describes as downright "spectacu- lar." Among all the Valko improvements and addi- tions, the AMC project is clearly the most chal- lenging from design, engineering and construc- tion perspectives. "It's an engineering marvel," Rohde says. Adding the theater level entails extending more than 100 structural columns about four feet vertically into the existing roof, explains DPR project manager Mark Whiley. Crews have also substantially expanded and reinforced the column footings on the main floor, and at the second level as well, to help support the cinema- level "podium," Whiley adds. That has meant temporarily digging into walls to expose the columns, with much of that work taking place in spaces still occupied by GOUR:',', INNOVATlV[ OESIGNARGHITEGTURE MALL EXPANSION: An artist drawing shows a food eouTt redesign under way at Cupertino's Valleo Fashion Park. tenants. Hence coordinating the activities with safety concerns in mind presents no shortage of logistical challenges, Whiley and Rhode stress. "There are a lot of moving parts," says Rohde, who's quick to also acknowledge the contribu- tions of Perkowitz+ Ruth Architects and KPFF Consulting Engineers. As the cineplex opening approaches, efforts to "re-brand" the property as Cupertino Square will intensify, continues Rohde, who had been general manager for four years or so before the current owners bought Vallco out of receiver- ship in 2003 for a reported $80 million. Wong and Chen headed the local group that bought the property from a former mortgage lender in 2003. They've since revised the ownership entity and capitalization occasionally, with the owner group currently known as Cupertino Square LLC as of the last major refinancing in late August. Next up after the AMC addition, the upscale Strike Cupertino bowling center is scheduled to open in mid-July. The 32-lane facility next to the mall's ice-skating rink can accommodate birth- day parties and the like for younger bunches during daylight hours, as well as nightclub/res- taurant-type entertainment for adults, Rohde explains. Also under construction on the second level is the mall's striking new.wave food court featur. ing a dozen vendor stalls and 600-some seats. The court and several other new and planned eateries should bring in more shoppers, Rohde expects. The latest additions are the Islands and adjacent California Pizza Kitchen at Wolfe Road and Stevens Creek Boulevard, along the south- ern peri!)hery. While Cupertino citizens voted down the Vallco group's plan for 137 condos north of the primary structure, the owners have develop- ment entitlements in place to transform an east. ern parking lot into a mixed-use facility wjtb 204 residences and another 105,000 square feet of retail space along with another nearly 1,200 parking spaces, Rohde notes. Plans have the groundbreaking taking place within the next year. Meanwhile. the approximately five-acre tri- angular site slated for the nixed condo p] an can alternatively accommodate a new hotel under the property owners' development agreement with the city, Rohde explains. The expectation is that the freeway-front site will soon see a hotel with 200 or more rooms and a smallish conference facility. And just to the east of that site, the owners have entitlements to develop another hotel, likely to be an upscale property with 150 to 175 rooms, Rohde says. The group is in discus. sions with potential operators but hasn't set a construction timetable. Meanwhile, all three anchor department stores (Sears, Macy's, J.C. Penney) have also commit- ted to what Rohde characterizes as "multi.mil- lion-dollar" remodeling efforts, either recently completed or currently under way. To help accommodate the additional patron- age the cinema and other improvements will predictably generate, the developers are also erecting multiple multi-level parking structures as the site's surface lots disappear. They've just fInished up a pair of garages providing another 1,500-some stalls. . BRAD BERTON is a freelance writer specializ,,',) in real estate. He is based in Portland, Ore. O/f2;lq PAGE 33 MARCH 2, 2007 SILICON VALLEY I SAN JOSE BUSINESS JOURNAL sanjose.bizjournals.com Covering San Benito, Santa Cruz and Monterey counties Rancor growing around Monterey initiative BY MARY DUAN sanjose@bizjoumals.com Just months before voters encounter what likely will be one of the most confusing ballot measures in Mon- terey County history, proponents of the growth blueprint developed by the coun- ty's Board of Supervisors have come out swinging against authors of the compet- I ing, slow-growth initiative. As the Board of Supervisors met Feb. 27 to haggle over the ballot language voters will face when they go to the polls in June, the group "Plan for the People" re-launched a campaign it be- gan one year ago. Aimed at exposing what it calls threats to the county's economy and livability by the Community Plan Initiative writ- ten by LandWatch, Plan for the People includes representatives from the agri- culture industry and labor unions, as well as affordable housing developers and advocates for farmworker rights. In a scene reminiscent of a Hollywood film set, Plan for the People supporters gathered in the parking lot outside of the National Steinbeck Center in Sali- nas, holding signs in Spanish and Eng- lish with slogans such as "Who's Watch- ing LandWatch," "Our Ancestors Didn't Come Here to Rent," and "We Deserve a Plan for Everyone." Speakers stood on a flatbed truck trailer decorated with hay bales, wood- en barrels, fresh produce and bottles of wine and, one after another, denounced the initiative. LandWatch has sued the county in an effort to force its plan be- fore voters. The initiative "is a terrible mistake for our county's future," said Butch Lindley, a rancher, partner in Lock- wood Winery and former Monterey County supervisor. Asked why opponents of the Land- Watch had waited until seemingly the last minute to aggressively campaign against the initiative, Lindley said: "Many of us thought it would never get to this point. "When outside influences could come to bear to this extent, I began to real- ize the importance of this kind of push back from LandWatch," he said. "You can't have a better education in lessons you didn't want to learn than by being on the Board of Supervisors." Chris Fitz, executive director of LandWatch, could not be immediately reached for comment. Plan for the People supporters said that, ifpassed, the initiative would force special elections to be held before virtu- ally every development in the unincor- porated county could go forward. This, they said, would lead to approval only of projects by rich developers who could afford "slick advertising campaigns" and the resulting expensive political races. The countywide vote requirement also wrenches control from local com- munities and places it in the hands of people who have no emotional or eco- nomic investment in such decisions, they said. "Initiative backers claim it will give people a voice in land decisions, but the opposite is true," said Juan Ura- nga, executive director ofthe Center for Community Advocacy, which teaches farmworkers to organize and lobby for improved housing conditions. Uranga, an attorney, is the husband of former Salinas mayor and current state Assem- blywOl)1an Anna Caballero. "The initiative increases the dispar- ity between rich and poor in our coun- try. The initiative says that wealthy people on the peninsula will be able to vote on how the valley grows, but work- ing families in the valley cannot decide on how the peninsula grows," he said. "That gets under my skin." Meanwhile, the Board of Supervisors agreed at its Feb. 27 meeting to place three separate referendums to decide the fate of the General Plan on the June ballot. The first is a referendum that would overturn the board's approval of the General Plan; the second asks voters whether or not the board's approval of the latest incarnation of the Gen- eral Plan, known as GPU 4, should be repealed; and the third asks voters whether or not they want to approve the General Plan Initiative. Monterey County has been struggling for more than seven years, at a cost of more than $7 million in taxpayer funds, to pass a General Plan, the blueprint for how growth will take place in the unin- corporated county for the next 20 years. The process has become so mired in controversy that the editor of one local paper likened it to civil war. Last year, LandWatch sued to prevent GPU 4 from going forward without vot- ers also being able to consider its rival General Plan Initiative. But that initia- tive also has been tied up in litigation, the subject of a suit filed by several La- tino activists who claimed the Initiative violated the Voters Rights Act because petition materials weren't circulated in Spanish. Most recently, LandWatch and six other public advocacy groups sued Mon- terey County in early February,alleg- ing the county violated provisions of the California Environmental Quality Act when it certified an Environmental Impact Report and adopted the General Plan in January. The groups are ask- ing a judge to issue a writ ordering the county to set aside the General Plan until it is brought into compliance with CEQA and state zoning and planning laws. MARY DUAN is a freelance writer based in Salinas. PfR-Qo In Depth 14 THE BUSINESS JOURNAL :,:q~llHQ",~t:<Half~centuty ats ";'~'~9@NQ-_~~. ~R,~"P~~'~"~3"-.:'::~_";';; ".' ,-' ;' :i-' .:. 'J_': -. ., :,,~~~~~ati~R.~,,- , ','" " ",,'" " ,monitoring areas of eXpertise. This was refleded;of theses,,:!' at least in part, in a Bank of America as part, of a study that found by 1966 that fully 70 called "system percel,1t of sales in the, area resulted vides greater : fromgovetnineritcpntracts.. :", "and an a . Through the1970s and '80s, while the · ture as n companY-was stilldevelopiIlniulfiple, able; , The, generations of stEMs ari.d " ,,' oth- ,was bolste ersystemsvitalJo natiblj' 't of,Lockhe was :aJ.SQ involved in hUil' er both co j:>rojed~ that posed iinpress~ve ,al,- and com lenies that wouldbeovetcome the new c a passion for. in11Qva,uol1 '" , ' Today, . ent toe ' , " teIrl,s Co Ie s ernployee ~ll day in Su has gro yeats. In 'last half-c , :efited 'fro . '. global ce . aIld some . .seatch fac it haS bro of good jo wisdom of . and sets a'stan stry':by . sOlving its. customers'.. toughest chal- lenges. Lockheed Martin is at home in Sunnyvale. . . ". . .... . Author's niJte: Sunnyvale population figures, additional. details about the Bayshore . Freeway . and Lockheed's choice of site(culledfroni reminiscenc- es of early Lockheed employees) and the cited finding of a Bank of America study were foundmthe book: "Slihny- vale: From the City of Destiny to the Heart of Silicon Valley" by' Mary Jo Ignoffo, published in 1994 py the. Cali- fornia History Center Foundation. sanjose.bizjournals.com FEBRUARY 23, 2007 / I ret~1,itfYol}:i~i5Wi~~~ . ... > ..< .:.' ....., .fh~.;r..o~kI1~e~, weir ..,......o.e....<......m....in.............th........s....'e..unn.......'.....,..-............................,.....'..yd......~.....;....... y<l:l~p/:jaK~ctat ~ .. .L...... . . W$Os, QPt witl\ .pf the.1??yi~~ IJi1ioL\and::3.. OL\ding,deplii:iein, def~ns.e "'Qudgets, . e1l11?lo:\'1l1efltplliit" bers b~gaIl. to CiepliIie.For:unatelY, the boon1ingec()nOlnyin Silicol1Vapey~ WhichrnallY attribute t()tl:1efalentand eXpertisedr~wn to the.. in'e~ 1))': Lo~k- heed, ~. was able. t~ abs()rlpnanywho lost thew jObsdronically, thecQDlPanY Whose strategicsysteDls lielpeliWil11:he Cold War Mdtorealignto genetatenew busineSS. 'i'liattealignment was aided, in la,rge part,by ~trtnning .. advances;. in semi. conductor tecpnologiesd~velo];)ed.in Sunnyva1e ..and the surrounding; area. Large-scale . processing Gapability e1,1- abled the design and construction of advanced space-based military satel~ lites, airborne assets and gr01U1d sys- tems that individually perform specific functions ~ such as communications, I\IiV!.ES D. CRANDALLis vice president, Strategic Development, and Site Executive, San Francisco Bay Area, ~t Lockheed Martin Space Systems Gomp~ny in Sunnyvale. He can be reached at ssc. communications@IItlCil.cilm. DtlZ -:) I In Depth 14 THE BUSINESS JOURNAL sanjose.bizjournals.com FEBRUARY 23, 2007 New stadium a Sa:l1ta Clafa<b:oost Football is a powerful sport. On the field, .it em. bodies the spirit of teanlWbrk to cOllectively accom- plish a shared goal. Inthestands, it isa sport that transcends barriers in soCiety to galvanize people of all ages, nationalities, religions and income- levels. Fans from across tlie country and beyond enter stadiums as strangers, and become united as a community as they cheer for their team. As owner of the San Francisco 4gers, I am committed to deliver- ing a new stadium in the Bay Area for the team's fans in time for the 2012 NFL season. The pri- mary focus of our effort is the City of Santa Clara, which has been home to our practice facility and headquarters for nearly two decades. It's an exCiting opportu- nity, and we are working closely with elected leaders, citizens and the business community as we study the feasibility of building II John York a new stadium without raising taxes or negatively impacting the city's general fUnd. Football stadiums can take from the best of a city's image and the collective attributes of its citi- zens. Together with our architects, we are design- ing a state-of-the.art stadium that represents the first of a new generation in stadium design. Our goal is to develop a venue that reflects the innova- tion, creativity and ingenuity that make Silicon Valley such a dynamic area. The 4gers see the site near the Great America amusement park as an ideal location for a new sta- dium. Thanks to Silicon Valley's supportive busi- ness community with many hotels, restaurants and shops, a new stadium would be a terrific boost to the local economy. The synergistic opportuni- ties with existing businesses and entertainment options in the. area are endless. One of our main design concepts is a central pedestrian plaza that would link the new stadium to the Great America amusement park on one end,. and the Santa Clara Convention Center on the other, creating a vibrant Insider , View See YORK, Page 14 YOR.K:Santa Clara a destination for 4gers fans during training camp at team's headquarters CONTINUEO FROM PAGE 13 Santa Clara and Silicon Valley has to offer with the en" tire nation. In addition to the 68,000 fans Jrom through- out the Bay Area and beyond who would attend 4gers games on Sundays, the team and the NFL brings tre" mendous television exposure. Nationwide, more than 195 million Americans watched the 2005 NFL regular season ~ that's 7 out of every 10 people in the United States. During the NFL season, 4gers games regularly receive the highest rating of any television program in the Bay Area. All this adds up to tremendous exposure to the community and businesses in the city of Santa Clara and the entire Silicon Valley region, entertainment district for the city. On game days, we imagine mobile food stations, bands, games and fam- ily activities lining the plaza, creating a street festival that would be open to both game day patrons and the general public. Santa Clara is already a popular destination for 4gers fans during training camp, which has been held at the team's headquarters for the past three seasons. A new stadiuni would be a great way to share all that Beyond the increased visibility, a neW stadiUm would bring many construction jobs created by the project and satellite .business opportunities. Anew stadium would also become a hub of activity and source of community pride. A new venue could host diverse events'ranging from college and high school football.games, concerts, soccer and motor sports events, andcomll1.inityevents. Finally, we see a new stadium as a: venue capable of hosting the Super Bowl, generating hundt'edsofmil- lions of dollars in economic activity tothe regiOn. JOHN VORK is owner of the San Francisco 4gersfoutbalUeam. DI,e -J~ In Depth 14 THE BUSINESS JOURNAL . Mountaihd'Vi:uw's . '. -0. ',' downtownthrives The successofto(iay's (iowntown MountainYiew was a studied and precise result of innovative plan- ning beginning over 20 years ago. The city demon- strated "smart growth" principles before the now popular term was ever conceived. The revitaliza- tion started in the late 198013 with three catalysts: a mixed USe devc:llopment on the 11 acre former Mountain View High School site and the city's large investments in both the street improvements along Castro Street and a new City Hall. The magnitude of these invest- ments was considered extraordi- nary at the time, and as such received criticism. They are now looked back on as visionary, set- ting the stage for further innova- Hnsid tion which has characterized the B' er city ever.. since. Six factors con" tributed to the success Mountain vievv View: II Jackie Safier Applying a mixed-use (housing, office, retail) strategy Built on 11 acres, the MoUntain View City Center development (located on the 600 block of Castro, the former. Mountain View High School site) includes 370 apartment units (Park Place), and a 5-story class A commercial building consiSting of 112,146. square feet of office and retail space. The city was influential in requiring the in- corporation of stoops in the residential component, similar to. the brownstones in New York, in order to help relate the buildings to the street level. The property, deVeloped in 1989 by Prometheus and de" signed by Fisher"Friedman AssoCiates of San Fran- cisco, . received numerous design awards and was selected as a ease study for the Harvard Gratiuate School of Design. The City turned the neighboring six: a,cre site located onFraIlklin Street (the former athletic fields of the Mountain View High School) into the popular Eagle Park. In 2002, another iconic mixed-use pr?perty Was completed at the'4001:Jlocko( Castro~tr(!et. pevel- oped by Tishnian-Speyer and designed by the SaIl " SeeSARER, ~age 14 sanjose.bizjournals.com FEBRUARY 23, 2007 I i / ! !rl_~ll;r CONTINUEIJFROM;~KGfi3 ' Fral"l(}i!li;oatc9At~iJttit~tfITlll.;.'t)f:Esli~r- ick Honw;sy DOQ~et~, pavis,tQe; 13~,!382 sqtiar~ (oot s~storie<fbllildi:tlgi11cllldes grOun<f.floor r~tailwith..$!gew"8Jk..!;efl.t" ing, T'Yo sc11lpt\ttes'GTeatedby~ritis~ artist G.aryHyrrte, are a focalP?i1;ttof the r>laza thate~tends .alQng''Castro and Californiastr~ts,.. .... ....... ....... ..... ...... ...... 1\pda.r, MOUl)f1inYi~~'sPastrO street is a place to live, w?r~ aIi<f!ll1op.Tliere' tail is. a fille biend.o,f patipl1al and lpGal tl:mants" adding to tliecity's vibrancy aIld character. . BoIsteringpulilicJnf~iI~trur:tUrt!. . . ." ThE!. Gity . has . tIlad~subst~.tiN . in- vestment in the' tiOWrttQWll,: inGlildin.g civic facilities, .pa,r]{!l andstreetsGape improvements,. totaIiJ;1~oyer$100mil. lion, The 1\1ountain"iewPlty Ha.lland Performing Arts Center;. (:ompleted.in April 1991, caused' Clstit Witli its total price tag of $44.5Wi1lion, Ii!. whopping $15.5 million over the city's budg~tat the time. The. City Hall develoPl11ent, designed by esteemed S@ FranCisco architect William Turnball, included a 77,000-square-foot city . hall and a 46,000"square"foot commuIlity theater that arched around a 30,000-square- foot courtyard opening into the 500 block of Castro Street. Mountain View also built a new public library in 1997, completing the centrally located Civic Center. Inilovative street improvements At the time of the City Hall redevelop- ment, the city alSo spent $12 million to redesign the traffic patterns by narrow- ing Castro Street, widening the side- walk from the typical width of 3 feet to 4 feet to a width of12 feet to 18 feet, adding :t:acataIY$(fphinOhvativa-" -. ,::"',.,';,,' ',_.:' ,', .'.i':i,::.)i :",.::::-:.: ,; ':",;: :':;;""'.': ;,::;:,' :.';,'.:,_:--;.;'_..',':,"i,.,'." -.. nj-in',,-Niduntain:.\tiewi}'.: FlIclI$ing!lJn Jl~~I.i~~~$P9gil~lilt . .... . MOtm~. "iew'stI'~~ltstati()ri, de- sign~dbY liawley getej?spII & Snyder, wascompletedin1.~9~.Tli~tnulti-Wpti- al tr~sit (:enterdevelq].Jw~nt:in.Glllde.s arepliy~9ftiJ.~... prigip.~.!I"~in,~taJ~()p', the ''f~sll1.an. COrri(ior '. ~igllt .~~il 'liIie, CaITraiP;,b~stt.~sfer ~nd11l.y.over facility; . expap.ded p~kingfacilities, .. platform'. ill1pI"PY(!m~I1ts iandJl.ed~stfi. ~.'access improvemeIlts''rhePt.9iect contributeti.tptiJ.e city's. ~e~l;}ctioI1by the Alll(!rican .plaJll1in~ . Associ~tiQn fol'. tiJ.e"(jlltgtand41trPl3.llI1ingA.-ward for:~!m:I)lel11ep'tati()n" . for ,]ntegraied TraiisitDevelopm(!nt in 2002. ~iU~"qUa!iJY! design Underlyin.g alloftheGity's dec~sions was arl unrelenting long-teTlllfo9us. on quality of deSign, often at a time when the immediate' economics and return may have not yet justified it. The innovation and qUality of de- velopment that started over 20. years ago in downtown Mountain View has spurred continued thoughtful and well-planned development iri following years. It is only fitting, in keeping With the spirit of innovation, that in August 2006, MOuIltain View b~calUe thefltst cityin the UnitedState~ entirelY cov- ered by a free wireless Internet access network provided by Google. JACL VN B. s,mER is a principal with Prometheus Real Estate Group, Inc., a San-Mateo based real estate developer, owner and manager of over 16,000 apartments thruughuut the Western United States. DrR..-.;23 ~n Ueptn 18 THE BUSINESS JOURNAL sanjose.bizjournals.com FEBRUARY 23, 2007 Sunnyvale uses rezoning to encourage building more housing BY DANEK S. ItAUS sanjose@bizjournals.com The city of Smmyvale is encourag- ing the building of more housing, much of it through rezoning changes to the General Plan and redevelopment in the downtown area, and a large part of the rezoning is changing industrial to resi- dential (ITR). Planning Officer Trudi Ryan says that Ihr rrwninl!, is part of rt regional efforl lu crea18 Inure housing, as well as irJl- prove traffic flow and quality oflife. The vast majority of the new hous- ing units that will possibly come on line in the next couple of years will be townhouses, condominiums and apart- ments, according to city spokesperson John Pilger. "Sunnyvale, like a lot of cities in the valley, doesn't have a lot of places to build housing," Pilger says. "The only thing we can do is rezone to allow more PlIC housing, more density, so when we go through the ITR process, we recognize that while we are giving up some indus- trial land for housing, at the same time we don't want to decimate what is zoned industrial." From July 2005 to June 2006, the city approved the construction of about 950 residential units. From July 1 to Feb. 15, the city has approved 297 new housing units, most of them town houses, and a few single family homes. "Maybe all of them won't get built," Ryan says, citing changes in the hous- ing market. Multiple projects: . As part of a change to the General Plan, the city is considering an ITR for a l30-are site bordered by East Duane Avenue, Stewart Drive. Wolfe Road and Xavior Drive. Potentially, it could add 2,842 dwellings if the city council approves rezoning, a decision that will be made in the near future, according to Ryan. 'Littllegt.ellipillyet~: , {OllicDevif:1! Inc.lsemiconiluctors & l1iIaled ileviceS) PharmacyClics Inc, (pharmacillil\cal,pfBparatlolis') Vei'ity ine. \DE\ (servicBS'comp\lter processing . 1\ om, prejJaraliiln) . SUNNYVALE CHANGES: The Tewn & Ceuntry shepping center in downtown Sunnyvale will be demolished and replaced with residential housing over retail. OrNNISG. HrNORICKS Applications had initially been made to rezone two sections of the site, one for 242 residential units, by The Riding Group in San Jose, and the other for 304, by Taylor Woodrow in San Ramon, The council asked the planning divi- sion to study the site as a whole. "Rather than do it piecemeal, the council decided to do a review of ev- erything," Ryan says. City staff and the planning commis- sion have recommended a configu- ration that would create up to 2,612 dwellings, fewer than the land could actually have. In the recommendation, 50 acres would be developed for low medium density residential, for the construction of 12 to 14 single family homes per acre. Forty acres would be used for medium density residential, 20 for high density residential, 10 for commercial and 10 for parks. . Another significant project is the ... .- . ~:,',.. '-J' tti~trll1u\~nitJltSlitiD6j;1J~l!ibt':_ 103rilT~~fa~~~~i,\ilQ(2!i2{3DOD Superinlendet1l:phil,Quim . - ,. F.remontiUriflii1:HJilhi'Srlholil,Oistrict .,. 50g,Wesi Frimiiiif^v~,;'4D8'5m2200' 'Supeiit1tendelil:iI!ohY:llilve Four Points Sheraton, on Lakeside Drive, which the owners have torn down to make room for a smaller, 250 room hotel with about 244 residehtial units on the site. The developer is Millen- nium Group. out of Singapore. The time line for its development is now uncertain. "It's all driven by the economy," Ryan says. . The Downtown Specific Plan, a set of zoning ordinances that apply spe- cifically to the downtown area, lays out plans for additional housing, in- cluding two major projects. In the Sunnyvale Town Center Rede- velopment Project. the existing shop- ping mall will be torn down to make room for a combination of commercial space. retail stores and a maximum of 292 ownership units that will prob- ably be a combination of townhouses and residential over retail, according to Pilger. The developer is RREEF, a global 50 financial organization, and Sand Hill Properties, in San Mateo ..'" ,.'..:;.,.\-." According to thedeveloPl11ertt:agl1JEi,'. ment, demolition must be completed by the end of this year, with :delivery of retail shells by March. 2009. . Housing units are expected to be otTered soon after that. . Nearby Town and Country shopping center will be demolished and rebuilt as residential over retail, though no specif- ic proposal had been sent to the council by the developer. Sand Hill Properties in San Mateo. Pilger says that new housing will be an important addition to the city. "We need to have places for people who work in our community to live. It is an important part of a viable commu. nity, " Pilger says. .::b;f:~:r IIlANE!( S. I{AUS is , Ireelance writer based in Mountain View. i"dllstrieS)ptli.~idingelllpl~~i\iIUlt:: . _' >~--': - .. :.:5- .:~~:~":' ,....'-;; " ':". "!:.. ~~~ClJ~~~I~le~i~~~'~0.~':: . 15 20 25 30 35 D/R -/14- FEBRUARY 23, 2007 sanjose.bizjournals.com In Depth THE BUSINESS JOURNAL 19 Community opinion sought on Onizuka Station reuse plans BY JEe A. BALLOU sanjose@bizjournals.com v ~ \ R:> ()) As the city of Sunnyvale marches towards its fall deadline with the Department of Defense, local groups have been invited to give input on the future life of Onizuka Air Force Station as the range of possible reuses gets trimmed to a shorter list this... spring. Onizuka will close in 2011 as part of the Depart- ment of Defense's Base Realignment and Closure (BRAC) measures. Operational staff will transfer to Santa Barbara county or other assignments and the current 23-acre property at the intersection of Route 237 and Highway 101 will most likely be developed to serve the local community. The exact nature of that development will be deter- mined over the next two months, according to Adam Levermore-Rich, deputy communications officer for Sunnyvale. By fall, the city council must present a single proposal to the Department of Defense, out- lining the most feasible development option. The military then has one year to either accept or reject the plan. "We're trying to make this as much of a public process as possible," says Levermore-Rich, dispel- ling allegations surrounding other base closure sites around California that reuse-activities neglect com- munity interests. After being named by the Department of Defense last year to head up the Onizuka reuse process, Sunnyvale city council's first action has been to form a Community Advisory Committee (CAC). The group includes representatives from Mountain View city council, business leaders, school and education officials, and at-large community members. It is responsible for representing community interests to the city council and advising on the most suitable reuse plan. Levermore-Rich says a series of spring meetings will narrow the list of all reuse possibilities to a shorter list of likely candidates. "We're right in the middle of that process right now," he reported. "There's a lot of analysis that has to go into this based on feasibility." A call for interests in the property went out last summer and several local groups submitted a writ- ten interest in development options. In particular, homeless service providers have eyed Onizuka for a 'We're trying to make this as much of a public process as possible.' Adam Levermore-Rich Deputy Communications Officer, Sunnyvale while. The CAC and city council, though, will need to weigh those needs against other potential develop- ments at the site. "The difficulty is that this isn't a real big facility," says Levermore-Rich, noting that Onizuka, a military intelligence and satellite control center, has no bar- racks or existing housing on-site. The council will need to consider how far-fetched of an endeavor it might be to transition the station into an affordable living complex or other housing development. No general reuse scenario exists for base closures nationwide, but the most popular reuse activity has been mixed-use development, with a blend of retail and housing, according to Tim Ford, executive direc- tor of the Association of Defense Communities in Washington, D.C. These varied developments are de- pendent on what the local community envisions. "But with smaller sites, like Onizuka, you do tend to see a more focused re-development of a single use," says Ford. Local real estate needs dictate the priority of that development, Ford says, and in areas like Sili- con Valley where housing is tight, most communities push for reusing bases for housing developments. According to Onizuka Chief of Public Affairs, Val- erie Joseph, the site currently has 11 buildings total- ing of 507,000 square feet, and an on-site power plant. The station is operated by the 21st Space Operations Squadron and maintains an array of satellite dish an- tennas in addition to the five-story windowless main building known locally as the "blue cube." Joseph has given tours of the station to Sunnyvale's council to help inform its reuse plans. "What we've done is show them around the station, .. so they have an understanding of what's there," says Joseph. Military offiCIals originally recommended realign- ing Onizuka vnth other stations in 1995. Since then, it has remained flJlly active, although most of its activi- ties remain classified. In 2005, Secretary of Defense Donald Rumsfeld recommended closing the station entirely as part of the military's fifth round of base closures and resizing nationwide. Once the Air Force vacates the property in 2011, Onizuka gets tU"ned over to the Air Force Real Prop- erty agency, 1,V11 ich becomes caretaker in the interim until ownersh1p is eventually transferred through a sale to develope"" or in a negotiated deal between the Air Force and lecal municipalities. JEe ARISTOTLE BAUJ.lU is a freelance writer based in Aptos. lm UepUl 16 THE BUSINESS JOURNAL sanjose.bizjournals.com FEBRUARY 23, 2007 GOURnSYGIIYOFSANIA~Lm REVITALIZING DOWNTOWN: The city of Sanla Clara plans 10 recreate a new ami vibrant downlown area al Franklin and Washington slreets that will .Uracllocat residenls, lourists and nearby_university 'acully and studenls. Stadium not seen as threat to downtown Santa Clara plans BY BECKY BERGMAN sanjose@bizjoumals.com Santa Clara city leaders say a football stadium with accompanying retail development won't compete for business with a new downtown. The San Francisco 4gers want to build a 68,OOO-seat football stadi- lUll adjacent to the Paramount Great America Theme Park in Santa Clara. In a letter dated January 4, team co-owner John York said the complex would also serve other events, including concerts, PlIC~mI~~~~1l ...~'b_,","""l international soccer games and even the Suo per Bowl. City officials say the area would best sup. port destination restaurants, specialty shops and trendy boutiques that appeal to tourists and local visitors. Real estate leaders believe the stadium deal would be a real coup for the city and help Santa Clara attract trendy restaurants, high-endretailel's and sales tax revenue to the region. "It would be phenomenal for Santa Clara and a huge plus SANTA CLARA Sanla Clara County City Han, 1500 Warburton Ave. 95050 40B"615.2200 Mayor: Patricia M. Mayhan City Manager: Jennifer Sparacino Land Area: 18.4 square miles Zip Code;; 95050, 95051, 95054 POPULATION: Estimated, July 2005: 105,402 (State Department of Finance) 2000 census: 102,361 (+2.97% change) Median resident age 33.4 years - year 2000 Median household income $69,466 - year 2000 Median household value $396.500 - year 2000 See DOWNTOWN, Page 17 SCHOOL DISTRICTS: Santa Clara Unified School Oistiict 18B9 Lawrence Road, 40B-423-2000 Superintendent: Rod Adams LARGEST EMPLOYERS: Transmela Corp. (semlcondlJl:tolS & !elated devices) PorlalPlayer, Inc. (semiconduclors & mlaled demes) lIetgear Inc. (telephone & le!egrnph apparalus) Hyperion Solutions Corp. (servlt;es-prepackaged sollware) Riverstone Networks Inc. (computer communicatlors e~uipment) SUN Microsystems Inc. (e\et;tronic computelS) loran Corp. IDEI (semiconductors & mialed devlces) Affymetrix Inc. (Iaboralory analytical instlUments) Cily of Sanla Clara NOTABLE: Paramount's Great America COUR1[SYOF SANFRANG~i:049[RS FOOTBAll IN SANTA CLARA? An artisl's rendering depicts the 4gers' 6B,000 seal football stadium proposed lor Santa Clara. Education level Population 25 years and over Bachelor'stlegree or higher ',;-" Graduate or professional degree Ethnic groups: (greater than 10%) 100 60 80 Mearitravel.tlri;~'to work~~1i~;:TjM1~~':; "', '. , I I' .Hispanic 10 20 30 40 50 industries providin!l employment: Construction building permits 21106: .f" ,:1. ;.~.;._..,,;.\~;.,,:\'~ Professional manaljement " "jl scientific, adminiStnllive. and , . -.' . waste management.ervices New commercial bldgs. - 10 Commercial tenant . improvements 200 400 600 000 Educational. health and social services 1000 10 15 20 25 30 35 SOURGE, r.11~' 0, SAN" CLARA. U~. r:H~U, BUREAU IINCLUOING 10Db [STlM!IE) t/lt< r:J& FEBRUARY 23, 2007 sanjose.bizjournals.com In Depth THE BUSINESS JOURNAL 17 DOWNTOWN: Heart of Santa Clara project will be a plaza at franklin and Washington streets CONTINUED FROM PAGE 16 for the overall valley," says Erik Doyle, senior vice president for CB Richard Ellis in San Jose. "With the stadium near all the great amenities, like the convention center and the golf course, the city will be able to draw from an entire retail spectrum." Meanwhile, the town is trying to bring back downtown. "[ don't think the stadium is going (I) I'lJange all.\'lhing abUUi t]H-~ downtown project or take away from it," says assistant city manager Ron Garratt. "Both areas work with different demo- graphics." The potential stadium will attract fans and tourists attending events or visiting nearby retail and restaurant businesses, compared to the downtown region, which willlil.ely appeal more to local residents who shop, live and work there, says Garratt. A six-month feasibility study, ap- proved by council members in early January, is currently under way to determirie if a new stadium in Santa Clara is viable for both the team and the city. Meanwhile, the city is moving for- ward on its plans to recreate a new and vibrant downtown area that will at- tract local residents, tourists and near- by university faculty and students. But Santa Clara is at least four months behind schedule in selecting a master developer to oversee the city's downtown revitalization plans. City leaders, who received six pro- posals in December, said they would choose a master developer by summer. Four of the submissions came from joint venture teams: Hopkins Real Es- tate Group and ROEM Corp., JPI West and Robertson Properties Group, Wil- son Meany Sullivan and Stockbridge Real Estate Funds, and Highlands Development Group and Summerhill Homes. CIM Group and Republic Properties Corporation also submitted proposals. The city also plans to select a devel- oper to construct a mixed-use project on seven acres around the Franklin Square area within Homestead, Wash- ington, Lafayette and Benton streets. "The city used to have a lively down- town back in the 1950s, but over the past several decades, the area has re- ally languished," says Garratt. "We want to bring'it back and help peopie get away from the whole mall concept which they don't like anyway." The city will construct a mixed-use. development that will include up to. 150,000 square feet of retail and restau-' [-ants, 50,000 square feet of convertible loft space, more than 400 residential units, a new parking structure as well as office space. At least 10 percent of the residential units will be aITordable housing. The city anticipates the project could run as high as $250 million and be- cause it lacks the deep pockets to fund a deal this size, it will rely heavily on the master developer and the public sector. The city'does plan to pony up any' where between $50,000 and $80,000 for each unit designated affordable. At the heart of the project will be a plaza at the intersection of Franklin and Washington streets surrounded by a variety of retail, eating and enter- tainment options that will help form an urban village setting. "We want to create a pedestrian- friendly downtown filled with boutique shops and a stronger restaurant pres- ence," says Garratt. "This is a remark- able time for the city and its economic development." While Santa Clara hasn't conducted any studies so far that would illustrate the potential financial impact of rede- veloping the"uowntown area, city offi- cials say re(ilil and housing are key to the area's prosperity and tax base. I3v replacing run-duwn facilities. strip. malls and square glass office buildings with upscale shopping, pe- destrian-friendly sidewalks, housing and eateries, the city can keep tax dol- lars from flowing out to neighboring communities. But such lofty goals are still years - if not decades - away, warn city leaders. The city of Santa Clara owns three of the four parcels totaling 6.5 acres, which have two 50-year lease deals that don't expire until 2023. The county of Santa Clara owns a parking lot adjacent to the courthouse and Santa Clara University currently holds the a.B-acre portion along Wash- ington iJne! Benlon. Both have expressed a willingness to work with the city. "The city won't use eminent domain to acquire the properties," says Gar- ratt. "It's going to be up to the master developer to negotiate with the lessees and work out a deal that everyone is happy with." "During the eatly 60s, the city used eminent domain to create the blocks that exist in the downtown today and it was such a bad experience," says Garratt. "Every council since then has avoided it." The parcels include a seven-story of- fice building, a strip mall with several s,'ne!wich shops, " Laundromat. insur- ;-i]-ICt: br()j{t~rage nJHl rl1ughly HHi parking space,. IlECltV BERGMAN is a Ireelance writer based in North Carolina. Dlr2 -.;) '1 ~n Uepth ~O THE BUSINESS JOURNAL sanjose.bizjournals.com FEBRUARY 23, 2007 Mountain View searching for diversity, balance in economy BV BECKV BERGMAN sanjose@bizjournals.com Council members rejected a plan <'eb. 13 that would have restricted resi. lential development and temporarily lalted large. scale projects in Moun. ain View. Mayor Laura Macias proposed a six- 110nth moratorium so the city could 'l'vie".;' 8.nd update Mountain Vievv"s :r'neral Plan before it appl'Uvecl all)' Jew projects. The city wants to diversify its rev- mue base so it can be less dependent m the high-tech industry while strik- ng a healthy balance between its com- nercial, residential and retail mix. Driven in part by the growing in- erest to convert industrial space to 'esidential development, concerned :ity officials say they are looking for vays to bring more retail to Mountain fiew. ~lIC Jessica von Borck, a business de- 'elopment specialist for the city, says v'lountain View suffered after the dot- ;om bust wiped out many companies. "Mountain View was hit hard after :he bubble burst," says von Borck. 'While the lower rents enabled small- ~r companies to move up without the :ntense competition, it was still a fi- lancial nightmare for the city. "The council is a visionary group ,f people with some great ideas," says 'on BorelL "The city wants to focus end grow the industrial product in he North Bayshore area, add retail o its downtown district and enhance he transit system. By working on all of that, we can embrace and withstand .ny marl.et condition." Mountain View is on the right track, ays Marilyn Hansen, vice president If Grubb & Ellis in San Jose. "Like every city in the valley, Moun- ain View is taldng a serious look MOUNTAIN VIEW Santa Clara County City Hal. 500 Caslro Sl, Mountain View 94039 650-903-6300 Mayor: Laura Macias City Manager: Kevin Duggan Populalien: 71.995 - Jon I, 2006 (State Department 01 Anam:e) 70,708 - 2000 census (+1.82% change) Land area: U.1 square miles Zip codes: 94040, 94041, 94043 lJIedi8l1 resident age: (3-4.6 years - year 2000) Mediall household income: ($69,362 - year 2000) Median housevolue: ($546,900 - year 2000) Largest employers: Synopsis Inc. (services - prepackaged software) SHiclll1 Graphics 1m:. (electronic computers) Actel Corp. (semiconductors & related devices) Rita Medical Systems Inc. (eleclromedical & elcclrotherapeutic epparatus) hrtuillnc. (services - prepackoged software) Inlrnhiutics PhannaceuticaJ Inc. /1lE! (phormaceutical mr",mrnllrlns:) OENlilSC.HENORICKS GOOGLE PROPERTY: The rapidly expanding search engine, Google, boughlland and buildings in Mountain View's Shoreline Technology Park last year for $319 million. at its General Plan and seeking op- portunities to improve its retail and residential mix," says Hansen. "So far, the city has done a great job with its downtown core, its housing projects and commercial development." Now Mountain View leaders will begin conducting study sessions later this year to help guide them in devel- oping the city's future over the next several years. "Mountain View is such a great city and it has the fastest growing com- pany in the U.S., Google, in its back- yard," says Erik Doyle, vice president for CB Richard Ellis in San Jose. "I don't think slowing down to figure oul what it needs to do is such a bad idea for the city. I think Mountain View has to wrap its arms around what it wants to be 15 or 20 years from now and figure out how to plan for that." And Google's expansion is as ram- pant as ever, says Kevin Duggan, city manager for Mountain View. Last year, the giant search engine gobbled up another portion of land See BALANCE, Page 21 VlVUS 1m:. (surgical & medical instruments & apparatus) Actara Biosclences 1m:. (measuring & controlling devices, NEC) City of Mountein View EI Camino Hospital Education level: Population 25 years and older School Districts: Mountein View/Los Altos Union High School Districl 1299 Bryant Ave, 656-940-4650 Superintendent: Or. Barry Groves Mountaill V'lBWlWhisman School District 750-A San Pienre Way, 656-526-3500 Superintendent: Or. Maurice GhyseIs LOi Altos Elementary School District 201 Covington Road, 656-947-1150 Superintendent: Tim Justus Palo Alto Unilied School District 25 ChurchiO Avenue, 656-329-3700 Superintendent: Mary Frances CaDan Ravenswood City School District (East Palo Alto) 2120 EucRd Ave, 650-329-2800 Superintendent: lIIaria Mem-Oe La VBJj1I Etbnic groupS: (greater than 10%) 20 40 60 80 100 Mean travel time,toworlc 21.9,minute$'. 60 40 50 30 20 10 industries providing employment: Construction building permits 20116: 10 15 20 25 I\\litable: Mountain View Cenler lor the Perforniing Arts Deer Ilollow Farm 50 100 150 200 250 SOURm CITY OF MOUHlAIN VIEW: U S cmu; e!:c[^u (INClIIOING 1005 ESTIMATE) DI~/c2rc FEBRUARY 23, 2007 sanjose.bizjournals.com BALANCE: Intuit's search for expansion space lead it to Men~o Park CONTINUED FROM PAGE 20 and buildings in the city's Shoreline Technology Park for a whopping $319 million and now it wants to build a one-million-square-foot campus at Moffett Field. Google's expansion has contributed to the shortage of commercial space jn Mountain Vi('\v A heavyweight tenant in Mountain View recently announced its plans to expand its headquarters to a neigh- boring city that could accommodate the company's growth. Intuit Inc., a financial software maker, inked a $15 million deal with . Bohannon Development Co. to lease two 70,000-square-feet buildings with an option for the third in Menlo Park. . out of business altogether - in 2000, Mountain View faced a $14 million tax revenue shortfall. "It's certainly a different envi- ronment now," says Hansen. "Five years ago we saw developers and ten- ants trying to get out as fast as they could." Mountain View last updated its state-mandated General Plan in 1992 and revised its housing component in 2002. The city plans to spend the next two to four yep.rs hashing out ideas. If staff had7'supported the mayor's short-term slow-growth proposal, it would not have affected developers with projects in the pipeline. But the moratorium would have threatened several large-scale proj- e.cts, including the 129,000.square-foot Home Depot slated to take over the Sears site on San Antonio Road when the department store closes. It could have also jeopardized plans by Summerhill Homes to build 50-plus residential units at the Grant Road Farm p\!ll1pJ\in patr,h sii,: BEen I8IERGMAN is a freelance writer based in North Carolina. COURTESY Of MV CENTER FOR PERfORMING ARTS NOTABLE ATTRACTION IN MOUNTAIN VIEW: Center for the Performing Arts. The Mountain View-based compa- ny will expand into a three-build- ing campus at 180 and 190 Jefferson Drive, formerly occupied by Sun Mi- era systems Inc. this summer. Intuit will keep its headquarters in Shoreline Park, according to Howie DaHmar of Cornish & Carey Commer- cial, who along with Kevin Cunning- ham, represented Bohannon Develop- ment Co. in the lease. Bohannon constructed the build- ings located near the western ap- pro~ch to the Dumbarton Bridge, in 1997. They have been vacant for sev- eral years, according to Dallmar. . "Intuit looked for the expansIOn room it needed in the Shoreline mar- ket," says Dallmar. "But the compa.11Y wanted a campus environment wlth more than 100,000 square feet and that's not really an option in Moun- tain View, especially with Google's appetite for space there." "Class A inventory is dropping sub- stantially in Mountain View," says Doyle. "We expect a 5 to 6 percent vacancy rate by mid-summer across the valley, so Mountain View could be even tighter." With more than 4.5 million square feet of commercial real estate in Moun- tain View during the fourth quarter of 2006, an estimated 411,000 square feet of availilble space accounted for a 9 percent vacancy rate. "A few years ago, no one would have predicted it would be this favorable for Mountain View," says Duggan. "After the high tech fall-out, we didn't thinlt we would see any construction for new office space for 20 years." When the dot bomb period drove many companies out of the city - or p/12. <)0