CC Resolution No. 07-109
RESOLUTION NO. 07-109
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO ADOPTING
BELOW MARKET RATE HOUSING PROGRAM MITIGATION FEES
WHEREAS, the City has conducted a Jobs Housing Nexus Study in 1992; and
WHEREAS, the Housing Element of the 2005 General Plan states that an updated Jobs Housing
Nexus Study shall be conducted; and
WHEREAS, Keyser Marston and Associates conducted a "Jobs Housing Nexus Update" pursuant
to the State Mitigation Fee Act (Government Code Section 66000, et seq.); and
WHEREAS, the "Jobs Housing Nexus Update" found a nexus between the creation of jobs in new
retail, hotel and office/industrial development and the resultant demand for very-low, low, median and
moderate income housing for the employees; and
WHEREAS, residential development also impacts affordable housing by competing for land that
can be used for affordable housing and driving up land values; and
WHEREAS, a fee can legally be assessed on said development and said fee will be used solely to
increase and improve the supply of affordable housing serving very-low, low, median and moderate
income households; and
WHEREAS, the P(MP) zoning district is the primary location of several major computer
companies and adjacent to the City's only regional mall located in the Vallco Redevelopment Project
Area; and
WHEREAS, the City wants to encourage the expansion of the corporate headquarters of these
driving industry leaders and encourage the redevelopment of the regional mall; and
WHEREAS, the P(MP) zoning district together with the adjacent Vallco Redevelopment Project
area creates a core commercial district contributing to Cupertino's economic well-being through
significant tax dollars and image enhancement; and
WHEREAS, a fee reduction would provide a monetary incentive to develop in the P(MP) district
and the Vallco Redevelopment Project area; and
WHEREAS, the City wishes to encourage mixed use development along the major corridors
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Cupertino adopts a
fee of $2.38 per square foot for office and research and development projects in the P(MP) zone which
recognizes the contributions of these companies and that a $4.75 per square foot fee will be assessed on
any new office, retail, and hotel development applications in all other zoning districts. All fees shall be
adjusted annually based on the Consumer Price Index.
NOW, THERE FORE, BE IT FURTHER RESOLVED that the residential in-lieu fee shall be
assessed on developments of 2-6 units at a rate of $2.50 per square foot and any fractional units shall pay
$2.50 per square foot for each fraction of a unit up to 12 a unit after which they will provide the unit.; and
Resolution No. 07-109
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NOW, THEREFORE, BE IT FURTHER RESOLVED that the following uses shall be exempt
from the impact and in,;lieu fees: existing single family lots, projects in a redevelopment project area and
mixed use projects providing two thirds residential and one third retail/office, which recognizes that said
projects are required to include Below Market Rate (BMR) housing within the development.
NOW, THEREFORE, BE IT FURTHER RESOLVED that the City Council directs staff to
prepare an Affordable Housing Program Ordinance detailing the housing impact fees.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of Cupertino this
19th day of June 2007 by the following vote:
Vote
Members of the City Council
AYES:
NOES:
ABSENT:
ABSTAIN:
Wang, K wok, Lowenthal, Sandoval
None
Mahoney
None
ATTEST:
APPROVED:
~.
City Clerk