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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 Direct~ Planning Commission Agenda Date: Tuesday, November 13, 2007 The City Council met on October 16 and November 5, 2007, and discussed the following items of interest to the Planning Commission: October 16, 2007 1. Planning Commission Appointment: The City Council appointed Jessica Rose to fill the vacancy left by the resignation of Commissioner Cary Chien. Ms. Rose's partial term will end in January, 2009. 2. Global Green Sustainability Project: The City Council reviewed the tentative scope of work for a Green Building Program and other recycling programs that could be implemented. Council concurred with the following points from pages 15-27 through 15-29 of the Staff Report: o "No" on Residential Food Scrap Program o Report back in January or February, 2008, with more information on Multi- Family and Commercial Single Stream Program o Report back in January or February, 2008, with information on Commercial Waste o Report back in one month's time on the Construction and Demolition Debris Ordinance o Report back in January or February, 2008, with information about what has been done in other cities and with a model ordinance on the Extended Producer Responsibility Policy (EPR) 3. Second Reading of Ordinance No. 07-1994: The City Council continued the second reading of Ordinance No. 07-1994 (the rezoning of approximately 2.2 gross acres from P(REC, Enter, Ltd Com) to CG, located at 20916 and 20956 Homestead Road (Application Z-2006-06) to the City Council meeting of November 20, 2007. 4. Moxley Properties: The City Council continued this item related to tree protection and the subdivision improvement plan on Lindy Lane until the November 20, 2007 City Council meeting to gather additional information. D(2..1 Report of the Community Development Director Tuesday, November 13, 2007 Page 2 November 5, 2007 1. Six-Month Review of Application M-2006-07 (Peel's Coffee): The City Council continued until November 20 the six-month review of a temporary approval of the modification to a previously approved use permit (U-2004-04) allowing an opening time of 5:30 a.m. for Peet's Coffee at 20807 (see attached report) 2. Petition to Reconsider Denial of Appeal of RM-2007-14: City Council denied the petition for reconsideration of the City Council/s decision to deny an appeal of a Minor Residential Permit application for a second-story rear deck on a new 1,794 square foot residence at 10484 Byrne Avenue. (see attached report) 3. North Vallco Plan (Phase I): City Council received the report on Phase I of the North Valko Plan. No action was taken. (see attached report) 4. Moxley Properties: Council received a report on the former Moxley property on Lindy Lane and directed the Public Works and Community Development Departments to send demand letters to the property owners regarding compliance with tree planting and drainage work. (see attached report) 5. Historic Preservation Policies: Council directed Staff to contact the Historical Society and report back to Council. (see attached report) Enclosures: Staff Reports Newspaper Articles G: \ Planning \ SteveP\ Director's Report \ 2007\pdl1-13-07.doc T)f< ~ ~ 10300 Torre Avenue Cupertino, CA 95014 (408) 777-3308 FAX (408) 777-3333 CUPERTINO Community Development Department SUMMARY AGENDA NO. AGENDA DATE November 5. 2007 SUBJECT: Conduct a six-month review of a temporary approval of the Modification to a previously-approved Use Permit (U-2004-04) allowing an opening time of 5:30 a.m. for Peet's Coffee, and include a review of the Use Permit, Application No. M-2006-07, Laura Thomas (Peet's Coffee), 20807 Stevens Creek Boulevard, APN 326-32-051. RECOMMENDATION: The City Council may take one of the following actions: 1. Deny renewal of the Modification to the previous Use Permit, requiring Peet's Coffee to revert to opening no earlier than 7:00 a.m.; or 2. Uphold renewal of the Modification to the previous Use Permit, allowing Peet's Coffee to continue opening at 5:30 a.m. BACKGROUND: On March 20,2007, the City Council granted temporary approval of a Modification (M- 2006-07) to a previously-approved Use Permit on a 5-0 vote, allowing Peet's Coffee to open at 5:30 a.m. until a six-month review of the permit could be conducted by the Council. Additionally, the Council recommended that review of the original Use Permit for the Peet's CoffeejPanera Bread Cafe building be conducted at the same time. The Modification application was brought to the City Council for review as an appeal of the Planning Commission's approval of the modification allowing Peet's Coffee to open at 5:30 a.m. The appeal was filed by Council member Richard Lowenthal. During the meeting, Council member Lowenthal explained the need for a pedestrian connection between the Stevens Creek Office Center, that includes the Peet's CoffeejPanera Bread Cafe, and the adjacent newly developed Whole Foods site to the west, particularly since the Council had anticipated this connection by requiring Whole Foods to construct its side of the pedestrian access on the northeast corner of the site. Additionally, some of the Council members raised the issue of inadequate parking at the Stevens Creek Office Center to accommodate Peet's CoffeejPanera Bread customers. When these businesses first opened, customers were not aware that they could park elsewhere in the office center parking lot, and as a result, began parking off- Dre-& Six month review ofM-2006-07 Page 2 November 5, 2007 -------------------------------------------------------------------- -------------------------------------------------------------------- site at the adjacent Bombay Oven Restaurant and across the street at the Target shopping center. The City not only received complaints from the Bombay Oven Restaurant, but also from customers who said that the parking was inadequate for these businesses. In late February, the office center placed directional signs in the parking lot to alleviate the confusion and notify customers that additional parking was available in the office center parking lot. These signs were installed as a condition of the Planning Commission's approval of the modification of the use permit. However, since these signs were placed on site just a few weeks prior to the Council meeting, the Council was not able to determine the usefulness of these signs. As a result, the Council also voted to conduct a review in six months of the original Use Permit that approved the Peet's CoffeejPanera Bread building to discuss this issue and that would allow for the Planning Commission to reopen the use permit at a public hearing and require permit modifications to address parking problems if necessary (See Condition No.8 of Exhibit A). John Volkmann, one of the property owners of the Stevens Creek Office Center, indicated that he did not support the pedestrian connection because the connection would result in the loss of a parking space at the office center and would not be a safe route to Whole Foods since it would require pedestrians to cross the loading dock area of the Whole Foods site to enter to the grocery market. Additionally, Mr. Volkmann indicated that owners of the parcel of the Stevens Creek Office Center who are affected by the pedestrian connection are different than the owners of the Peet's Coffee and Panera Bread site. The City Council requested that this item be brought back for review in six months to allow the property owner, John Volkmann, to consult with the other co-owners of the Stevens Creek Office Center on whether they would agree to construct the pedestrian connection. The review of this application was delayed from occurring six months from the March 20th meeting because the City was awaiting a response from the property owners of the Stevens Creek Office Center on the pedestrian connection. DISCUSSION: Staff met with John Volkmann in early October who conveyed the property owners' determination that they would not support construction of the pedestrian connection on their property. Mr. Volkmann felt that the difference in walking distance from the mid- point of the Stevens Creek Office Center to the Whole Foods entrance and from the pedestrian connection to the Whole Foods entrance would be minimal. Staff measured these distances and found that one walking distance route from a mid- point along the west side of the Stevens Creek Office Center to the Whole Foods entrance would be approximately 1,040 feet (See Route A on Exhibit B). Another access route from a mid-point at the center of the office center to the Whole Foods entrance O(J...'-f Six month review ofM-2006-07 Page 3 November 5, 2007 ----------------------------------------------------------------~--- -------------------------------------------------------------------- would be approximately 990 feet (Route B). However, the walking distance from the same west side starting point in Route A at the Stevens Creek Office Center to the Whole Food entrance using the pedestrian connection would be approximately 460 feet (Route C). Therefore, the difference in walking distance is significant. Staff believes the pedestrian connection is important because it allows more interconnectivity between the two properties that would alleviate the need to double the parking trips for customers/ employees patronizing these two adjacent properties. In response to the concern about pedestrian having to cross in front of the loading dock area, staff would also like to emphasize that there is an additional pedestrian walkway behind the Whole Foods building linking the pedestrian connection on the Whole Foods site to Stevens Creek Boulevard, thereby providing an alternative pedestrian route (Route D) to the Whole Foods entrance without having to cross the loading dock area. This walking distance route is approximately 915 feet, which is shorter than the existing walking route between the properties. Also, customers routinely cross the area if they park in the northerly most aisle and staff is not aware of any problems. Regarding the parking issues, the Code Enforcement Division has not received any complaints regarding parking at this location since the opening of these businesses. Therefore, it appears that the parking issues have been resolved with the installation of the directional signs. Staff Recommendation: Staff believes that the expanded early morning hours of operation are an intensification of use on the property and contribute to the doubling of parking trips between the adjacent properties without the pedestrian connection. The City Council has consistently encouraged pedestrian connections between properties to facilitate walking and bicycle use. For example, the Council required pedestrian connections at the Public Storage site on Valley Green Drive to connect to the adjacent office complex site, at the Montebello condominium site to connect to the surrounding commercial developments along De Anza Boulevard and Stevens Creek Boulevard, and at the Astoria condominium site to connect Imperial A venue to Bubb Road. Therefore, staff recommends that the City Council deny the renewal of the Modification application that would require Peet's Coffee to open no earlier than 7:00 a.m., which is the City's current allowable opening time for commercial businesses throughout the City. However, staff does not recommend modifying the original Use Permit at this time since the parking issue appears to have been resolved with the addition of the directional parking signage. If the City Council feels these issues are separate and chooses to allow Peet's Coffee to continue its early morning opening time without the pedestrian connection, the Council could ask John Volkmann to sign a letter of intent to provide the connection in the event he wishes to expand the office center in the future. DrZ--5 Six month review ofM-2006-07 Page 4 November 5, 2007 -------------------------------------------------------------------- -------------------------------------------------------------------- Enclosures: Exhibit A: U-2004-04 Conditions of Approval Exhibit B: Map of Walking Distances Exhibit C: Minutes of the March 20,2007 City Council meeting Exhibit D: City Council report of March 20, 2007 w / attachments Prepared by: Aki Honda Snelling, Senior Planner Submitted by: Approved by: Steve Piasecki Director of Community Development David W. Knapp City Manager G:planningj pdreportj appealsjM-2006-07, 6 month review D.e.. ~ I CITY OF CUPERJINO City of Cupertino 10300 Torre Avenue Cupertino, CA 95014 (408) 777-3308 Fax: (408) 777-3333 Community Development Department Summary Agenda Item No. _ Agenda Date: November 5, 2007 SUBJECT Consider a petition for reconsideration of the City Council's decision to deny an appeal of a Minor Residential Permit application for a second story rear deck on a new 1,794 square foot residence, Resolution No. 6485 Application No. RM-2007-14, Reza Raffi, 10484 Byrne Ave, APN 357-14-013. The petitioner is Fatekh Vergasov. RECOMMENDATION The City Council can take either of the following actions: 1) Grant the request for reconsideration by making required findings outlined by the City Attorney (reconsideration could either be heard at this or a future meeting); Or 2) Deny the request reconsideration by making required findings outlined by the City Attorney. Environmental Assessment: Categorically Exempt BACKGROUND: On June 21, 2007, the Design Review Committee (DRC) approved a new two-story, 1,794 square foot residence located along the east side of Byrne Avenue close to the corner of Byrne Avenue and McClellan Road. Due to the extraordinary physical constraints of the site, the Committee also approved several exception (R-2007-23) requests to the R1 Ordinance (ground floor side yard setbacks, second floor setback surcharge and the second floor exposed wall rule). In addition, the approval included a Minor Residential Permit for a second story rear facing balcony. On July 10, 2007, Mr. Fatekh Vergasov filed an appeal of the DRC's decision citing concerns on privacy impacts from the proposed second story balcony. On August 28, 2007, the Planning Commission considered Mr. Vergasov's request and upheld DRC's decision and denied the appeal. Mr. Vergasov appealed the Planning Commission's Pfl-, RM-29007-14 Page 2 ~ovember5,2007 decision and on October 2, 2007, the City Council considered the appeal and upheld the Planning Commission's decision and denied the appeal. The appellant is now requesting for a reconsideration of the City Council's decision. DISCUSSION: Applicants' Appeal: Specific grounds for reconsideration are provided in the Cupertino Municipal Code. The appellants' reasons for the reconsideration request are outlined in the appeal letters attached to the staff report (Exhibit D). The grounds for reconsideration are discussed in the attached matrix, Exhibit B, as prepared by the City Attorney. The City Attorney recommends that the City Council deny the request for reconsideration, for the reasons stated in Exhibit B. A resolution for denial is enclosed (Exhibit A). ENCLOSURES Exhibit A: City Council Resolution Exhibit B: City Council Findings in Response to Petition for Reconsideration Exhibit C: City Council Staff Report (w /attachments), October 2, 2007 Exhibit D: Petition of Reconsideration Exhibit E: City Council Meeting Minutes, October 2, 2007 Prepared by: Gary Chao, Senior Planner Submitted by: Approved by: Steve Piasecki Director, Community Development David W. Knapp City Manager G: \Planning \PDREPORT\ CC\2007\RM-2007 -14reconsideration.doc D~~ City of Cupertino 10300 Torre Avenue Cupertino, CA 95014 (408) 777-3308 Fax: (408) 777-3333 CUPERTINO Community Development Department Summary Agenda Item No. _ Agenda Date: November 5, 2007 APPLICATION SUMMARY: Accept the report on the North Vallco Master Plan - Phase 1. RECOMMENDATION: The Planning Commission recommends that the City Council accept the report. The report will be provided to prospective developers in the area, along with relevant zoning and general plan information. BACKGROUND: The City Council authorized the preparation of the first phase of a Master Plan for the North Valleo area, as defined by the General Plan, which is roughly bounded by Homestead Road, Wolfe Road, 1-280 and Tantau Avenue. (Please see Figures 1.1 and 1.2 of the North Valleo Master Plan report for location maps.) The 240-acre acre includes the 96-acre Hewlett Packard campus and the approximately 64-acre future Apple campus, as well as Cupertino Village, a hotel, two apartment complexes (consisting of 550 units) and additional office and residential properties (See Figure A.5 for property information.) The study was initiated to proactively address development issues in the area ahead of development proposals. The urban design firm of Freedman Tung and Bottomley, represented by Michael Freedman, was selected to help prepare the plan and facilitate three Community Workshops. Freedman Tung and Bottomley is an award-winning urban design firm, who designed such notable projects as downtown Mountain View and downtown Livermore, which recently received an American Planning Association award. Bruce Liedstrand, former City Manager of Mountain View, served as a consulting advisor on the Master Plan process, and a Core Team of City staff members oversaw the project. The City Council appointed a 20-person Study Committee as advisors to the project; the members are listed on Page 33 of the report (one person dropped out, so 19 names are listed). The Study Committee met four times. D~..q North VaIlco Master Plan Page 2 of 4 The community was invited to participate in the study. Appendix B of the report describes the three Community Workshops. A citywide postcard was mailed to all Cupertino property owners prior to the first Workshop. The Workshops were taped and posted on the website, and website information was updated throughout the process. The Study Committee reviewed and commented on a first draft of the enclosed report at its last meeting on July 23. That draft was amended to reflect those comments, and the Study Committee was able, as individuals, to review it and forward any additional comments to staff prior to the Planning Commission meeting. Most of the additional comments were incorporated into the enclosed draft. Several suggestions or comments were not included in the draft because, while they were discussed, it was not clear that they had consensus of the whole Study Committee. They are, in summary form: SUGGESTED CHANGES BY INDIVIDUAL STUDY COMMITTEE MEMBERS . Pedestrian Scale Blocks (Page 7, Section 5.4): The traditional style of individual buildings surrounded by large parking lots should also be encouraged. . Minimize building footprint (Page 8, Section 8.2): Remove first sentence that says "Substantial new development increments should be encouraged to provide multiple story structures that minimize building footprint and maximize available land for future development." Could also encourage underground parking and bermed building with below grade parking such as already exist near existing Apple campus (old Four Phase Building site). . Figure A.2 and A.3 (Page 24): Take out these figures, they confuse the issue. People did not appear to want to slow Pruneridge down. . Photos on Pages 6, 7 and 8: Suggest removing or replacing these photos. They may give a different viewpoint than our committee statements and seem to suggest design elements that the committee removed from the document at the last meeting. COMMENTS BY INDIVIDUAL STUDY COMMITTEE MEMBERS . Minimization of traffic impacts (Page 9, Section 10): There used to be an ACE train shuttle pickup on Tantau...it might be a good idea to start this shuttle up again, if it has been discontinued. 1:>12/10 North Vallco Master Plan Page 3 of 4 . Most of FTB's concepts have become obscured in this document, e.g., the need to break down the superblocks into a system of streets and blocks that accommodates the current owners while still allowing future, possibly multiple smaller owners to effectively utilize and share the space. DISCUSSION: The Study Committee recommendations consist of the "Principles/Issues to Address" found on page 5 through 9. Appendix A and other materials provided by the urban design consultant are support materials. As shown in those materials, Michael Freedman presented in-depth information on the 21 st Century Workplace and how that concept might be realized in Cupertino. Debbie Stauffer, Chairperson of the Study Committee, will present the Study Committee's recommendations at the City Council meeting, and Study Committee members are invited to attend. In summary, the Study Committee supports the importance to the community of HP, Apple and the industrial properties. Future development in the area should be done through a collaborative process, making it an attractive workplace while recognizing companies' security needs. An attractive workplace includes providing areas for interaction, accessibility to retail and services, public spaces, and connectivity. Gateways, landmarks and public art should be considered. New development should be encouraged to be sustainable, with minimal building footprints. Adjacent neighborhoods should be protected from traffic, visual impacts and noise. The issue of residential development should be addressed as development of the study area proceeds. PLANNING COMMISSION: On October 9, the Planning Commission discussed the North Valko Master Plan report (see enclosed minutes). Major points included: . Expression of thanks to the Study Committee and to Debbie Stauffer who chaired the Study Committee and made the presentation to the Planning Commission. . Purpose was to get the community together and to put a plan in place so that developers would have a better understanding of what makes sense in the area. . Expression of concern about protecting the tech parks as far as locating housing in this area. . Interest in connectivity, transit, and adding retail and services in the area. . Concern that the plan is slightly generic. City Council should challenge consultants to go beyond good solid principles for urban design and push to keep Cupertino on the cutting edge. PI<--Il North Vallco Master Plan Page 4 of 4 . Important to have a long vision and plan for the future. This document has concepts that might challenge the ideas that Apple moves forward with. The public will be informed and hopefully we will have a really great project. Need to continue to add information to the document in the future. PUBLIC: Four speakers: . Call for smart growth, infill strategy, urbanism, pedestrian friendly downtowns. Bridge over 280 to span north and south Valko. . Concern that this is a rhetorical study that does not do a lot for the community. . Importance of North Valko as a tech park. . Concern about involvement of Apple and Hewlett Packard in the study. STAFF: . Representatives from Apple and Hewlett Packard played an active role in the study. . Some of the consultant's concepts, which were not in the Study Committee recommendations, are found in the earlier administrative draft (Exhibit B). Enclosures: North Vallco Master Plan - Phase 1 Exhibit A: Presentations from Michael Freedman, Freedman Tung & Bottomley (January 25 and March 8,2007) Exhibit B: Administrative Draft prepared by Freedman Tung & Bottomley Exhibit C: Planning Commission Draft Minutes, October 9, 2007 Prepared by: Ciddy Wordell, City Planner Approved by: Steve Piasecki, Director of Community Development G:planningjpdreportjmiscjNorth Valko Master Plan 11-05-07 D.e "l!l City of Cupertino 10300 Torre Avenue Cupertino, CA 95014 (408) 777-3308 Fax: (408) 777-3333 CUPERTINO Community Development Department Summary Agenda Item No._ Agenda Date: November 5, 2007 APPLICATION SUMMARY: RECOMMENDATION: Staff recommends that the City Council: Direct staff to continue to pursue replanting of five trees required by the tree ordinance and evaluate potential remedial actions to rectify the release of the xxx bonds, including possible legal action. BACKGROUND: On July 9, 2001, the Planning Commission approved a Tentative Map to subdivide a 1.6 acre property on Lindy Lane into three parcels. The conditions of approval and the tentative map are enclosed (Exhibit A). The property is zoned R1-20. The three lot sizes are 22,501 square feet, 20,475 square feet and 21,461 square feet. The property owner at that time was Bret Moxley, and the three lots have since been sold. Residences have been constructed and occupied on Lots 1 and 3. Lot 2 is vacant and no building plans have been submitted. A future home on this parcel will conform to the 5,500 square foot maximum house size required by a recorded covenant (see discussion below) and the recently adopted hillside development standards. Concerns about tree protection have been expressed by neighboring property owners and the City Council. A condition of approval required certain tree protection measures, as follows: All trees shown to be protected on the tentative map shall be protected. In addition, tree #9 shall be relocated. Trees #30, 35 and 36 shall be reevaluated to determine if they can remain. Trees #18 and 42 shall not be removed. Any specimen oak tree removed shall be replaced with a 36" box oak tree, with the location to be determined by staff. Other tree protection recommendations included in the arborist's report (Deborah Ellis, May 2001) shall be followed. A tree bond in the amount of $20,000 shall be submitted prior to recordation of the 0(2...13 Application: Tree Protection Report Page 2 final map, and shall be released upon a written report by the arborist that the trees have been adequately protected during construction and are expected to survIVe. DISCUSSION: Exhibit B consists of two aerials that show and number the trees on the site, prior to and after site development. Exhibit C is a diagram that describes the status of trees protected and removed. In summary: . Two specimen trees to be saved were removed. Mitigation for one of those trees on Lot 2 has not occurred and will be required subject to the covenant. Additionally, 4 specimen oaks on Lot 2 approved for removal have not been replaced, and will also be subject to the covenant. . Replacement for one specimen transplanted oak that died on Lot 3 is necessary. . Four specimen oak trees either not reported or approved for removal were saved. · The property owner of Lot 2 will be required to plant five 36/1 oak trees. Regarding the tree bond, unfortunately it was not collected prior to recordation of the final map due to lack of staff coordination, so it could not be used as leverage for enforcing tree replacement. However, staff attempted to work with Mr. Moxley for tree replacement on Lot 2 and was not successful in that Mr. Moxley did not respond to subsequent requests (see Exhibit D). In 2004, the Planning Commission expressed concern about the size of the houses that could be built on the three lots, and discussed the possibility of rezoning the property to Residential Hillside. In lieu of rezoning, Mr. Moxley agreed to a covenant on each lot to limit the size of all structures to 5,500 square feet (see Exhibit E). The covenant also required "installation of up to 20 non-deciduous trees of not less than 24/1 inch box size in size in a location that will provide partial screening of any new residence from the public right-of-way on Lindy Lane, subject to the approval of the Director of Community Development./I This covenant is recorded against the property and is enforceable. Mr. Moxley has been invited to attend this meeting to provide his input on the trees and the improvement plan (the report from Public Works on the improvement plan follows). Enclosures: Exhibit A - Tentative Map Conditions of Approval and Maps Exhibit B - Site Aerials (Pre- and Post- Construction) Exhibit C - Diagram of Protected Trees l>.e--/'f City of Cupertino 10300 Torre Avenue Cupertino, CA 95014 (408) 777-3308 Fax: (408) 777-3333 CUPERTINO Community Development Department Summary Agenda Item No. _ Agenda Date: November 5, 2007 Application: CP-2007-03 - Historic Preservation Ordinance Applicant: City of Cupertino Property Location: City-wide APPLICATION SUMMARY Provide direction to the Planning Commission regarding Application No. CP-2007-03, City of Cupertino, Citywide, Historic Preservation Policies. RECOMMENDATION The City Council should do the following: 1. Evaluate the City's existing Historic Preservation Policy. 2. Plan to update our historic inventory and develop a preservation strategy for each site as part of the Planning Commission 2008/09 work program. Staff will prepare an implementation schedule and budget program to support this effort for your consideration at the time of development and adoption of the work program. BACKGROUND On January 8, 2007, the City Council directed staff to prepare a Historic Preservation Policy as part of the work program for 2007/8. The Council was interested in a more proactive approach to preserve existing buildings working with the Historical Society and other community groups. In 1996, the City Council appointed a five-member ad-hoc Historic Research Committee to identify potential historic sites. The primary purpose of that research effort was to evaluate the historic values of the sites and recommend which of the sites potentially warrant preservation and eventually adopt a historic preservation ordinance. The final report from the Historic Research Committee identified, researched the history and rated 32 potentially historic sites. Their report is attached as Exhibit E. The City Council on October 6,1997 accepted the report and the conclusions from the Historic Research Committee and determined that a historic preservation ordinance was not warranted, primarily because the highest valued sites listed in the report already have protective measures in place. D~ -'10 ;.itUNN ;" - INTEGRATED DESIGN ASSOCIATES INC. I Z SQUARED DESIGN FACILITY Architecture/Design Project of the Year IDeAs takes energy saving to new high, or low BY DANEK S. KAUS sanjose@bizjournals.com Wfen David Kaneda, principal of Integrated Design Associates, in San Jose, and his wife bought an old bank building at 1084 Foxworthy Avenue, they decided to convert it into a notable sustainable office building. He already knew people who are in that line of work so he gathered a special team that included a general contractor, architectural firm, HV AC company and other key players. "To make this building super efficient [in terms of energy usage] it is impor- tant that the architect work with the mechanical and electrical engineer and structural engineer or it won't work. It's like a Swiss watch. You can't just design a piece separately," Kaneda said. Kaneda originally wanted to explore the possibility of creating a building that would house his company and have a Platinum LEED rating when the project began about three years ago. Although LEED considers energy consumption as one the criteria, that is not its main fo- cus, according to Kaneda. "LEED was all the buzz back then," he says. "The architect suggested that instead we look at zero energy and zero carbon design," Kaneda says. He considered the idea and agreed.' "At the time I felt like the whole world was going straight ahead and I had just taken a sharp left-hand turn. Now I feel like I have gone straight ahead and the whole world has taken a sharp left-hand turn," Kaneda said. The IDeAs building is designed to produce lTIOre electric energy than it uses, through solar power, and to not rely on fossil fuels for heating or cool- ing. It is called the Z Squared Design Facility by IDeAs because of the goal of net zero energy and zero carbon emis- sions. It features a number of earth- friendly systelTIs. Kaneda's favorite is the use of sky- lights that create enough light to elim- inate the need for electrical lighting during the day yet are small enough to not create excess heat during the summer or to let it escape during the winter. He is also proud of the photovoltaic cells on the roof that will at times send electricity back to the grid, and a shade on one side of the building that reduces heat from the sun. Kaneda believes that his is the only of- fice building on the planet that can make the claim of net zero energy and zero car- ~l- I bon emissions. Why did he go to such lengths? "Because I have children," he says. DENNIS G. HENDRICKS David and Stephanie Kaneda and their team at Integrated Design Associates Inc. specialize in energy saving technology, starting with their own space which was once a bank. DANEK S. KAUS is a freelance writer based in Mountain View. e, ~ , -:I /-,;-7 ~~--5< ~-,;~::-:;Ji?: :[::3; 1--- .~. :;:..-::;..--:..~ --%'~~~~ .'"~~:- ~~ ::---= ~;/~~~~ __ ~ ~. ::.---::::.::----:s SPECTRUM HOMES I REMODELIN'G PROJECT Architecture/Design Project of the Year Cupertino. remodeling project garners awards BY MICHELE CHANDLER sanjose@bi4ournals.com golf course view. That house now sports new windows, high-efficiency heating. and reconfigured interior walls that better utilize natural lighting. Cork floor- ing is used on the entire first level. The fireplace lnan- tle? That's nlade of glass, as are some railings and sev- eral sets of suspended shelves located in between the kitchen and living roonl. Other sections of the home's floor and an entire exterior balcony wei"e constructed from reclaimed teak collected fronl old, unused build- ings and railroad lines in Indonesia. The Cupertino remodeling project received the dis- tinction of Best Green Remodel on the 2006 Santa Clara County Green I-Io111e Tour sponsored by non-profit Build It Green. The project was also awarded a Master Design Award fronl Qualified Relnodeler lnagazine. Spectrum officials say that making existing homes green saves undeveloped land. After one eco-pioneer cOlnpletes green home improvelnents, their neighbors may follow suit, igniting a green "ripple effect" that SpectrUln says could benefit an entire neighborhood. Mountain View-based SpectrU111 Fine I-Iomes, a family business Susan and Robert Davis found- ed in 1990, strives to design and build houses using techniques and products that are kind to the envi- rOl1lllent while boosting energy efficiency. The company was awarded certification in green relnodeling in 2004 and now completes about 10 residential remodeling proj- ects a year, large and slnall. "At least 95 percent of clients come to us wanting something 'green.' Some want energy efficiency, while SOlne want to have good indoor air quality," conlpany co-owner Susan Davis said. A recent project shows how remodeling can go a long way to l1laldng all existing residence nlore environ- lnent-friendly. - Spectruln has received a string of industry acco- lades for its green relnodeling project in Cupertino, where, in 2006, the COl1lpany fully renoVated a 2,500- square-foot, 1970's-era, split-level ranch hOlne with a COURTESY OF SPECTRUM RNE HDMES Spectrum completed this award-winning green remodeling in Cupertino. MICHELE CHANDLER is a freelance writer based in San Jose. 40 October 12, 2007 " ~ \ ""'- ~ Big deals signal commercial market likely to sizzle into 2008 - Silicon Valley 1 San Jose Business Journal: Page 1 of 2 Silicon Valley I San Jose Business Journal - October 22, 2007 http://sanjose.bizjournals.comlsanjose/stories/2007/10/22/story8.html SILICON VALLEY I SAN JOSE BusilessJournal Friday, October 19, 2007 Big deals signal commercial market likely to sizzle into 2008 Silicon Valley / San Jose Business Journal.. by Sharon Simonson After a blockbuster third quarter, the Silicon Valley commercial real estate market has begun the fourth with a bang. rr....f:... .:... '. I~ -< .,.. -- :11 Only days after the quarter closed, ~!~~Q..~Y~!!:.~~J.~~.~. signed a 472,000-square- foot, 12-year lease for three Milpitas office buildings owned by ~~.~.!:~.~~!~~, a division of The ~!~~~!.~:!!!:...Q~Q~P. out of New York. ........ ... -- Meanwhile, there seems little question that .Q~.~.g~.~J.~~.~. is pursuing ownership or occupancy of the A!~~..~.~.!:P.~. campus in Mountain View adjacent to its own headquarters spread. A deal would prevent 500,000 square feet of offices from returning to market, possibly improving the region's overall vacancy rate. Dennis G. Hendricks Google may buy or lease the Alza campus in Mountain View. Not surprisingly, Silicon Valley commercial rents have risen smartly. Average asking View Larger rates for full-service offices fell to their cyclical lows in the $2-a-square-foot-a-month range in late 2004 and early 2005. By the third quarter of this year, they were back up to at $2.61 a square foot, according to brokerage NAI BT Commercial. At least one landlord, who prefers anonymity, believes they will not stop here. "Rents still have a lot of upside," he says. He notes that rates in posh Palo Alto are back in the $4.50 a square foot range. At the peak of the boom, they flirted with $7 a square foot. Aside from being the most desirable market in Silicon Valley where lows are never as low as elsewhere and recoveries are always faster, Palo Alto is often viewed as a bellwether for commercial markets to its south. By and large, brokers and landlords agree the market is as strong as it has been since early 2001 and the dot- com bust and appears poised for continued strength into 2008. "Everyone seems to be feeling pretty good," says Christian A. Marent, a senior vice president in the San Jose office of .~~..~~~.~.~.~..~J!!.~' "Including the big deal with Cisco, already there has been something like 550,000 square feet of gross absorption in the fourth quarter." Gross absorption is the total amount of square footage that companies lease or buy for their own use in a given period. Net absorption counts that number but subtracts from it any square footage that tenants or companies return to market for lease. The commercial market's optimism for the future appears well-placed. Multiple important and high-profile valley companies have released exceptional financial news and growth rates in recent days and months. Such D.e-I q 10/22/2007 http://sanjose.bizjournals.com/san jose/stories/2007 11 0/22/story8.html ?t=printable Big deals signal commercial market likely to sizzle into 2008 - Silicon Valley / San Jose Business Journal: Page 2 of 2 tidings almost inevitably translate into commercial leasing activity, either by the company itself or related firms. Cisco, the valley's second-largest private employer, recorded record revenue of $34.9 billion in its 2007 fiscal year, for instance. So far this year, it has signed leases for about 1 million square feet in Silicon Valley alone. Besides its lease with Carr, this spring it agreed to lease 400,000 square feet from local developer PeeryjArrillaga. It also penned a 116,000 square foot lease with Carr at 3571 North First St. in San Jose and an 85,000 square foot lease in Milpitas, both in the third quarter. The company added 11,600 workers on a net basis in its 2007 fiscal year, on top of 11,500 new workers in fiscal 2006, according to its 2007 annual report. "Our headcount is expected to increase (even more), as we continue to invest in engineering and sales" workers, the company adds. Meanwhile, A:-PP.!.~J.~~.~. also has reported record revenue, profit and Mac computer sales -- not to mention shipping nearly 10 million iPods in its more recent fiscal quarter ended in June. During the quarter from July through September, the company acquired an additional 150,000 square feet in Cupertino at 19191 Vallco Pkwy., CBRE says. That's roughly enough space to accommodate 600 additional workers, and the company has been busily getting it ready for occupancy, a city of Cupertino official says. The property is not contiguous to the 50-acre Cupertino tract that the consumer electronics company has acquired to build a second headquarters campus. In total, Apple occupies and owns well in excess of 2 million square feet in Cupertino, including its existing 850,000-square-foot headquarters campus on Infinite Loop. The Cupertino office market has less than 2 percent vacancy and its research and development market has less than 6 percent vacancy, NAI BT says. Together, the two have about 8.8 million square feet. SHARON SIMONSON covers real estatefor the Business Journal. Reach her at (408) 299-1853. All contents of this site @American City Business Journals Inc. All rights reserved. http://sanjose.bizjournals.comlsan jose/stories/2007 / I 0/22/story8.html ?t=printable i>Y<-~o 10/22/2007 Page 1 of 1 San Jose mayor unveils plan for eco-friendly future S.l. MAYOR UNVEILS PLAN USING ECO-FRIENDLY STRUCTURE AS BACKDROP By John Woolfolk Mercury News San Jose Mercury News Article Launched: 10/06/2007 06:42: 37 AM PDT Showcasing a local consultant's newly refurbished building designed to produce more energy with solar power than it uses, San Jose Mayor Chuck Reed launched an ambitious agenda Friday to make the city a national leader in environmentally friendly technology. "Our 'green vision' is a road map to becoming the center of innovation in clean technology," Reed said at the Integrated Design Associates, or IDeAs, building on Foxworthy Avenue, where he was joined by council members, business leaders and Rep. Mike Honda, D-Campbell. "Our vision is lofty, our goals are ambitious, but they can be done." The IDeAs building is a converted bank branch billed as the nation's first "Z-squared" building, meaning it uses less energy than it generates and produces no carbon emissions. Reed said it demonstrates that his goals are achievable. IDeAs principal David Kaneda agreed. "We're a 14-person consulting firm," Kaneda said. "If we can do it, anyone can do it." Designing such a building was a feat of engineering. Windows had to be sized and located in such a way that they allowed enough light to reduce the need for artificial lighting without being so large they would tax the air-conditioning system. Reed's 10-point "green vision" calls for the entire city - including residents, businesses and government agencies - to cut its energy use in half over the next 15 years even as its population is projected to grow from 954,000 to 1.2 million. He wants to see 25,000 new clean-tech jobs, mostly from the solar industry, the planting of 100,000 new trees and 60 miles of new trails. The mayor also proposes that by 2022, all 712,000 tons of waste a year that San Jose now sends to landfills should be converted to energy. He wants all of the city's wastewater - 100 million gallons a day - to be recycled or otherwise used beneficially. And he says the city government's vehicle fleet should run entirely on alternative fuels. Reed acknowledges his goals are highly ambitious. None of the waste from San Jose's landfills is being converted to energy right now, only about 10 percent of the city's wastewater is being recycled and just 930 of the 12,700 vehicles in the city's fleet run on alternative fuel. It's unclear how much Reed's plan might cost, though he believes the savings from energy efficiency make it more cost-effective in the long run. Also ambiguous is who would ensure San Jose meets Reed's targets if they are adopted by the city council on Oct. 30. Gov. Arnold Schwarzenegger, also an advocate of solar and other clean- energy technology who has called for a million solar roofs statewide, praised Reed's proposal at a Scotts Valley barbecue Thursday evening and called him the "green mayor." Contact John Woolfolk at jwoolfolk@mercurynews.com or (408) 975-9346. . CfoseWi~ t SendToPrihter o,e...~, http://www.mercurynews.com/portlet/article/html/fragments/princarticle.j sp ?articleld= 710401 O&siteld=... 10/912007 Sobrato sheds five apartment complexes in $190 million deal - Silicon Valley / San Jose Business Journal: Page 1 of 2 Silicon Valley I San Jose Business Journal - October 15, 2007 http://sanjose.bizjournals.comlsanjose/stories/2007/10/15/story7.html SILICON VALLEY I SAN JOSE BusinessJournal Friday, October 12, 2007 Sobrato sheds five apartment complexes in $190 million deal Silicon Valley I San Jose Business Journal - by Brad Berton Amid rising Silicon Valley apartment rents and property values and strong investor demand, Sobrato family interests have sold a valley-heavy portfolio of five multi-family communities totaling 1,380 units for a price tag approaching $190 million. The buyer is big institutional realty advisor RREEF, which manages real estate investments on behalf of pension funds and various other investors. Investment brokers Stan Jones, Phil Saglimbeni and Sal Saglimbeni at Marcus & Millichap in Palo Alto, who represented Sobrato interests in selling the portfolio, said their clients and RREEF agreed not to disclose the selling price. Based on the ages and locations of the properties, other observers estimated the likely value in the vicinity of $135,000 per unit for a total consideration approaching $190 million. The Silicon Valley properties are the 216-unit Park at Winchester along Winchester Boulevard just north of Williams Road in San Jose; the 148-unit Woodbridge just west of Lawrence Expressway at East Homestead Road in Sunnyvale; and the 120-unit Verandas at Cupertino immediately south of 1-280 at North Blaney Avenue. All were completed between 1969 and 1974. Sobrato entities acquired the San Jose and Sunnyvale communities in 1998, the Cupertino property in 2000. The RREEF transaction also included a 100-apartment property in Santa Cruz, and one of Sacramento's biggest multifamily communities, the sprawling Tamaron Ranch with nearly 800 units near the 1-5/1-80 interchange. RREEF plans modest capital improvement programs at the properties, following up on modernizations the Sobrato affiliates had undertaken early in the decade, Jones said. RREEF, now an affiliate of global giant Deutsche Bank, has long and deep roots in Silicon Valley and the Bay Area generally. It was founded in San Francisco in the mid-1970s. The firm made a high-profile splash last year with the $1.1 billion acquisition of the 5.3 million-square-foot so-called Peery-Arrillaga portfolio of valley business parks. Although disruption in the credit markets over the past few months has made it more costly for many real estate investors to borrow, interest in valley real estate remains strong from cash-heavy institutional-type investors such as RREEF. The RREEF-managed investment fund that bought the Sobrato portfolio didn't tap any mortgage debt in closing the sale. Sobrato and RREEF came to terms before the debt pricing turmoil hit, so the uncertainty surrounding financing rates and terms really didn't affect bidding on the portfolio, explained Jones, who along with the Saglimbenis has brokered $830 million worth of Bay Area apartment deals this year and has another $400 DRw~ http://sanjose.bizjournals.comlsanjose/stories/2007/ 1 01l5/story7 .html ?t=printable 10/23/2007 Sobrato sheds five apartment complexes in $190 million deal- Silicon Valley / San Jose Business Journal: Page 2 of 2 million pending. The prevailing optimism about the direction oflocal rental rates is reflected in steadily rising per-unit sales prices. Investors have become more aggressive with respect to the investment yields they're willing to accept to get in on the Silicon Valley multifamily action. New York-based real estate investment tracker Real Capital Analytics reports that valley apartment sales this year through the end of August averaged about $188,250 per unit. That's at the top of the charts nationally (with one noteworthy exception) on par with the big Southern California markets, the Washington, D.C., vicinity, Boston and Long Island. Manhattan is in its own stratosphere at beyond $400,000 per unit. Illustrating optimistic investor expectations about the local market's future, buyers have paid some of the most aggressive prices in the nation as measured by first-year returns on investment (known as the capitalization rate). For the roughly $425 million in larger ($5 million-plus) apartment sales closed through August, prices factored to a capitalization rate of 4.7 percent. That's among the lowest in the country along with N ew York, Washington and San Francisco, and far below the western U.S. regional average of 5.5 percent. Through August, valley cap rates had averaged about 5 percent during the two previous years, with sales prices at about $166,350 in 2005 and $178,500 last year. Not surprisingly Real Capital Analytics also reports that another $400 million worth of valley multifamily properties were up for sale in September, at an average asking price exceeding $190,000 per unit. Rising rents are driving the activity. Valley rates have risen 20 percent over the past couple years at professionally managed communities, with the typical rate for a two-bedroom/two-bath unit moving up from $1,516 in mid-2005 to $1,821, according to the RealFacts apartment market research firm in Novato. Meanwhile with development activity meager, apartment occupancies valley-wide have risen steadily to 97.3 percent at mid-year -- the tightest level since 2000. Brad Berton is afreelance writer specializing in real estate. He is based in Portland, Ore. All contents of this site @American City Business Journals Inc. All rights reserved. http://sanjose.bizjournals.comlsanjose/stories/2007 /1 0/15/story7 .html ?t=printable l)f<-~ 10/23/2007 Page 1 of 2 At 45 years old, San Jose buildings become historic resource OLD BUILDINGS IN SAN JOSE COMPLICATE DEVELOPERS' PLANS By Katherine Conrad Mercury News San Jose Mercury News Article Launched: 10/23/2007 01: 34:42 AM PDT All that stands between a bulldozer and the dilapidated Bonsai Nursery is its age - and a "cooperative developer." Empty since 1998, the unimposing building on the corner of De Anza Boulevard and Bollinger Road in San Jose looks as though a good stiff wind could knock it down. But when the building turned 45 two years ago, the developer seeking to build on the almost two-acre site had to at least try to preserve the termite- and dry rot-infested structure. Why? Because the plywood nursery, designed by architect J. van der Ploeg in 1959 and built in 1960, had passed the 45-year mark. Once that milestone is reached in San Jose, any structure is regarded as a historic resource, the first step on the road to becoming a city landmark. In other words, it's tougher to tear down. It can be done, but it takes some doing. The Bonsai Nursery was saved. The 1 ,900-square-foot structure is slated to be turned into a coffee shop next to a brand new Trader Joe's, which is planning to open a store at the same location. But the fate of the other 3,300 buildings identified as historic resources in San Jose is anybody's guess. Five or 10 years ago, many of these low-rise buildings that went up during the 1950s and 1960s would have been demolished. But as of 1975 when the city passed a historic preservation ordinance, they have a new lease on life - at least until the property is eyed for development. Some examples are Botown Seafood on Second Street, Hoefler's on First Street, the San Jose Ballet building on Fourth Street, the McDonald's on Almaden Expressway, and the IBM Building 25. City historic preservation officer Sally Zarnowitz said the preservation issue is certain to raise the ire of developers as the demand for more housing and office buildings increases. "We're looking to retain the character of the city and also allow for development," said Zarnowitz, who called the resolution to preserve the Bonsai Nursery a win for both preservationists and developer Hunter/Storm. Zarnowitz knew she would have a fight on her hands if Hunter/Storm had resisted preservation because it's tough to make a case for such a modest building that's falling apart. Ed Janke, chairman of the city's Historical Landmarks Commission and the architect who helped restore San Jose's Trinity Cathedral, sees a classic example of midcentury post-and-beam architecture when he looks at the Bonsai Nursery. "In some ways I think you would imagine it as an Eichler construction. It's the commercial example of an Eichler," he said, referring to the architect who designed many of the ranch-style Santa Clara County homes built in the 1950s, '60s and '70s. But for Scott Cunningham, a veteran building designer and a city commissioner for historical landmarks, the Bonsai Nursery looks like a "garden shed." He cast the only dissenting vote against preserving it. "A lot of these '60s buildings were pretty plain Jane ugly," he said. "If we make all this stuff historical, we save a lot of buildings that are not particularly great." Cunningham mentioned the Botown Sea Food restaurant on Second Street, and IBM's Building 25, as examples that he believes stretch the quest to preserve. He predicts many battles ahead as the city grapples with what's truly worth saving, and what is not. "We're getting into stuff built since 1965, we have literally thousands of buildings. Are we going to preserve all of them?" he asked. "We need to walk the line of what makes sense." Megan Bellue, executive director of the Preservation Action Council of San Jose, agrees that a sensible approach is best, but wonders why the these buildings couldn't be reused, or recycled. "We are so careful not to throwaway cans, yet we throwaway buildings like crazy," she said. DR ..-t5l4' 10/24/2007 hUp:/ /www.mercurynews.comlpOltletJartic1e/html/fragments/princartic1e.j sp ?artic1eld= 72557 60&.siteld... Page 2 of 2 The Bonsai Nursery, still owned by nurserymen George and Thomas Yamanaka, was living on borrowed time. Since the Yamanakas closed their business in 1998, the building was almost demolished on two other occasions to make way for development. It was Hunter/Storm that ultimately saved the nursery. Curtis Leigh, the company's project manager, said he had planned to bulldoze it and several other structures on the site until he was told in 2006 that the nursery was 46 years old. Initially, he resisted the suggestion to save it. But after he visited the architect in San Francisco, and saw the original drawings dated 1959, he had a change of heart. Still, Leigh calculated that the preservation effort added almost four months to the process and thousands to the price tag of the development, estimated to cost $3.5 million. "Obviously, as a developer, you want to make it as easy as possible. But in hindsight, it's cool that we kept it," said Leigh, who could have taken the fight to demolish the nursery to the city council. He is still pondering the fate of the familiar Bonsai Nursery sign. For George Yamanaka, it wasn't easy to talk about demolishing the building where he'd spent almost 50 years of his life, working seven days a week. But he confessed that speaking practically, it's a tougher call. "As a past owner of the building, it would have been nice to save it just for memories," Yamanaka said. "But as a practical business person, if it wasn't declared historical, it would have made it a lot easier to go ahead, take it down, and establish a new building." . c1o~~~M6w .1 S~ndT o Printer l),Q':J-5 http://www.mercurynews.com/portlet/ artic1e/htmllfragments/prinCartic1e.j sp ?artic1eld= 72557 60&siteld... 10/24/2007 Cupertino study sheds little light on divisive housing issues - Silicon Valley / San Jose Business Journal: Silicon Valley I San Jose Business Journal - October 29, 2007 hUp:l/sanjose.bi;z:journals .com/sanjose/stories/2QQ7/1 0/29/5 tory 13. html SILICON VALLEY I SAN JOSE Ilsiolssd I Friday, October 26, 2007 Page 1 of2 Cupertino study sheds little light on divisive housing issues Silicon Valley I San Jose Business Journal - by Sh"ronSimQQsQD A $100,000 report to frame anticipated redevelopment of a large but antiquated industrial cluster in Cupertino -- including 167 acres owned by A-PP~.~J~~~. and ~~~~~!.':.~.:J:'.~~~.~~4..~~. -- will be presented to the town's five-member governing council Nov. 5, roughly a year after a 20-member citizen committee began to hammer out its parameters. A day later, the town of 50,000 will select two council people for four-year terms, in effect designating the five representatives who will likely do the gritty and difficult political work necessary to address the community tensions such redevelopment almost certainly will cause. Sherry Tesler Marty Miller, former chairman of the Cupertino planning commission, is the idea man behind the planning for a 240 acre site where Apple Inc. proposes to build its second headquarters campus. Yie\f\lJ~.(3IgeI The report is unlikely to relieve them of much of that burden: It is decidedly preliminary. Though neither Apple nor HP had representatives on the study committee, neither company would disclose any specific plans for their holdings, by far the largest in the area. Nor does the study even loosen the largest knot of community disagreement, which led to the planning effort in the first place: How much, if any, new housing should Cupertino allow in the 240-acre area (and everywhere else in the city, for that matter) in the years ahead? At issue is not only the re-build of a significant land tract in one of Silicon Valley's more desirable communities. The 240 acres area forms Cupertino's city limits on its north, east and western flanks. Consequently, whatever is built in the area will affect neighboring towns. In both Santa Clara and Sunnyvale, large blocks of single-family detached homes directly abut the boundaries. In addition, the 240 acres now are lightly developed for the most part, and by modern measures could easily accommodate far more square footage. While many South Bay communities have heartily embraced land- use philosophies that preach more intense redevelopment of sites located in the midst of existing cities, factions within Cupertino have resisted those ideas. Often, their rallying cry is the protection of the town's famed schools from overcrowding and quality loss. Given those dynamics, how Cupertino responds to the forces for change could turn out to be of interest to all of Silicon Valley and of particular interest to property owners within its limits. With the involvement of two of the region's most important employers, however, the stakes are far higher than idle curiosity. All told, the North Vallco area has more than 2.5 million square feet of occupied and vacant offices and research and development buildings, some of the stock dating back to the 1960s. Besides the HP and Apple () 1<- ~ http://sanjose.bizjournals.com/sanjose/stories/2007 /1 0/29/storyI3 .html?t=printable 11/612007 Cupertino study sheds little light on divisive housing issues - Silicon Valley I San Jose Business Journal: Page 2 of2 holdings, the area includes the 125,000-square-foot Cupertino Village shopping center, which is seeking an expansion, and the Hamptons and Arioso apartments. Apple, which has acquired 67 acres facing Highway 280 between Wolfe Road and Tantau Avenue over the past several years, has said that it intends to build a second headquarters campus on the site to complement its existing, nearly 900,000 square foot facility at 1 Infinite Loop, also in Cupertino. However, it has not filed any plans with the city of Cupertino. Hewlett-Packard, meanwhile, owns nearly 100 acres north of Pruneridge, also between Wolfe Road and Tantau Avenue. A spokesman for the company said Oct. 23 that he could say nothing about the company's plans. "It certainly made it more difficult not to know what the two major property owners are thinking," says Marty Miller, the former chairman of the Cupertino Planning Commission and the brain behind the committee. The committee wound up settling on 11 "guiding principles," none of them startling or particularly revolutionary, other than the bald statement that the community needs to "address (a) Superfund site" within the planning area's boundaries. It gave no further detail. Among the most committal statements were the dual pledges to keep the area primarily industrial and to work with Apple and HP as "highly valued members of the Cupertino community." The principles also evidenced some movement toward contemporary planning ideals, including an emphasis on making the area walkable, providing services nearby for local workers to use without having to get into their cars, and giving the district an "identity," something it now sorely lacks. But as far as building more housing, the report notes only it is an area of contention in Cupertino and needs to be approached "in a constructive manner." For his part, Miller believes his home town needs to bite the bullet and build some new homes, despite some resident fears that the town's award-winning schools will be overwhelmed by new students and their quality suffer. Indeed, Miller notes, Cupertino may find it has little choice: Apple may say it must have nearby housing to give its new workers some place close to live. SHARON SIMONSON covers real estatefor the Business Journal. Reach her at (408) 299-1853. All contents of this site @American City Business Journals Inc. All rights reserved. http://sanjose.bizjournals.comlsanjose/stories/2007 II 0/29/story 13 .html ?t=printable ()f<", fL7 1116/2007 '111' +1.,"_' 4 The News THE BUSINESS JOURNAL www.bizjoumals.com/sanjose November 2, 2007 . "We wanted to be sure our HR and business goals were aligned..... . "Our pay programs were no longer effective..... . "I needed HR experts for a temporary special project ..... . "Our goal was to hire the best HR Director..... "...I called Merit Resource Group." ~lllUX., <C_-- RESOURCE GROUP Maximizing Hunum Resources Working with successful businesses for neariy 20 years. 925-867-4400.408-501-8863 . www.MeritHR.com Does merger madness have you looking for a new trust department? Meet Borel. Borel Private Bank has been serving families and small businesses on the San Ftancisco Peninsula for 27 years. Our customers are loyal, as are the people who worle. here.. If a familiar face is more appealing to you than a merry-go-round of "trusted advisors", give Nancy a call. Banking - we take it persollally. m."I Borel Private Bank mAl & Trust Company. Mffmba ojBtnton PriUilU wudJh M_tJgVllm.t GrOI'1' M=bu pOle 1.1 I:... LVrlUC')l Jol11l<;01t, SeUIOl' Ii Ilst e:} hWest1l1CIlt Office1 6,0 17f! p10 . Hie BU\lt RO.lJ . ~ III ]'v!~tC(" C-\ S:111 Mateu . P,lla Altrl . SIn Fr lnCI~l\l J lJ., Alto::. ~""i : l BtnlrtlgmllL" (Firl! .lOr}':) www.borcl.com 'Some people said r8placing .Iost c811 phon8 data would b8 worS8 than g8tting OV8r a braakup: Richard Onyon FusionOne Inc. i.. !.." , .., .'-'. .~,' ~. "'~".. " :...~.;<iiiJ'... .....' .t~ '. 'W.,c!.' 'H \ . :;t, ."~,, "Ii..\, ~r i~'; ~'~ The Business Journal interview: .Take my wife.., please ... but not my:cell phone When San Jose-based FusionOne conducted its third annual survey on cell phone use, it found most respon- dents believe losing their mobile device would cause significant harm to their social life and the trauma would be greater than an interpersonal relation- ship breaking up. CEO Richard anyon, who founded FusionOne in 199B after raising $150 million in funding, understands. In 1999; hi$ company was responsible for launching a product that enabled users to synchronize a broad range of files including e-mail, calendar, browser set- tings and music. . In 2004, the company - along with Ve. rnon Wireless - launched the fIrst au- tomatic mobile content backup service.. Onyon spoke to Business Journal contributor Becky Bergman about the annual study and his thoughts on the relationship we have with our mobile phones today. Q: How would you characterize the relationships we have with our mobile phones today? A: Today, a mobile phone is not only a means of staying connected, but also says something about who we are. Mo- bile phones are just as much a fashion statement as a communication device. The designs and colors available today give people endless possibilities to ex- press thelllSe1ves through their phone. The ring tones, music and pictures all tell a story of who we are. A phone . a way to stay connected to people; i an emotional connection to the p around us. It is a little like a car people have one, but what drive can convey something ab personality, just like a phone seven billion people on the pI billion have mobile phones. P always have a desire to co with each other, so the marke continue to grow. ~ Q: Why are we so hooke mobile phones? A: We are all very dependen mobile phones. It is the way connected with people. Mobile nes now have almost the same functi: al- ity as computers. We can run our busi- ness and our personal lives through our phones. We can get e-mail, listen to music, and store all of our impor- tant information and photos. A mobile phone can feel like a lifeline. Two things surprised me about this survey. The first was the honesty of these reo sponses; 73 percent of the respondents said that they have sensitive material such as text messages and photos that they wouldn't want others to see on their mobile device. That was surpris- ing. Next was the fact that the rate of people losing or damaging their phones is one the rise. The last time the survey was conducted, one in every four said they have lost or broken a phone, now it is up to one in three. This stresses the importance of being able to back up all of the information on a mobile device. Q: Seriously, losing a mobil\;! phone is more painful than cavity f"illings or break-ups? A:. The respondents were comparing the loss of the data on their phones to getting a cavity filled or breaking up, the. loss of the actual phone was the least ont. Some people said it would take them more than to re- place lost da: ne w broke respondents minds tha wo e worse than having a cavity or getting over a break up. A story in the Oct. 26 issue - "Cu- pertino study sheds little light on divisive housing issues" - was in error on the makeup ofa a committee that has met for the last year to try to map out plans for the redevelopment of 240 acres in the city. Both Hewlett- Packard Co. and Apple Inc. had rep. resentatives on that committee. Michael Boyce-Jacino is chief ex- ecutive officer of BioNanomatrix Inc. His name was misspelled in an Oct. 19 story about genome sequenc. ing costs. ThusnUrlconlentlorllllsnllWl,apBrlllBcopyrlghlBd(Cl2D07)by8113lnwJou orqra~ccon18nlln8nymannlll'l!prnhlbllBd.Th8SIllclmVallBY/SanJosBDuslnB8s 8usiness Joumal (1SSN 1632-14G9) IspublLshBdWBBkly.wlll1anlllldlUonalluuelnJuly, Journal PubllcaUDlIS Irm.. 96 N.Thlrd Sl.SUll.e 1Do. SanJose.C^85112.Pllllool~lspostBVBl3p es are a\'8llablB lor S6.5D Bach prapald (mailed) and 53.25 each prupald (plckml up) smpt fur \he annual800k of UslJ (552.48 malled DUL) Poslmas sr: S81II addless charrges!ll: SIIICDII Vallayf _"'-./J ?, SanJDn Business Journal. B61l ThInlSl.SUIl11DD.5BnJnsB,CAD6112-77D3.4OB-295.380Q- rax4DB-2D6.5D26. V" ......:;:> Cement operator looking for alternative site for quarry expansion - Silicon Valley 1 San Jose Business Jo... Page 1 of 3 Silicon Valley / San Jose Business Journal - November 5, 2007 http://sanjose.bizjournals.comlsanjose/stories/2007/11/05/story5.htm I SILICON VALLEY I SAN JOSE BusilessJournal Friday, November 2. 2007 Cement operator looking for alternative site for . quarry expansion Silicon Valley / San Jose Business Journal - by Sharon Simonson Stung by criticism from neighbors, the new owners of a century-old limestone quarry in the hills above Cupertino are scouting a new location as an alternative to a controversial expansion plan. The quarry and cement operation -- typically called Hanson Permanente -- supplies half the cement used in the Bay Area and is seeking to open a second limestone quarry to supplement dwindling supplies at the first. But neighbors have voiced concerns about the first prospective quarry's proximity to their homes and the visibility of the mining scar from the valley floor. The Hanson quarry, cement plant and related operations now cover about 600 acres in the foothills of the Santa Cruz Mountains. The company wants to expand its footprint to more than 900 acres in the same location, including the new quarry site. ~ ,.-/ .:~tt- -" , '?' I!t. " - Dennis G. Hendricks Cupertino resident Joyce Eden lives near the Hanson quarry. Semis from the quarry pass on Stevens Creek Blvd near her house 24 hours a day View Larger Marvin Howell, the California land-entitlement and real-estate director for Hanson Aggregates West, says the company is spending "millions of dollars" to evaluate the new location, which is further away from Cupertino. The decision will postpone for an unknown time the completion of a draft environmental impact report being prepared to evaluate the proposed mine expansion. Santa Clara County was to have published that draft EIR later this month. "It's important to note that we are sensitive to the neighbors' concerns, and that is what we are trying to address with the movement to the west," Howell says. But Joyce Eden, an activist and spokesperson for a neighborhood group monitoring the proposed expansion, the West Valley Citizens Air Watch, says she will reserve judgment on the potentially mollifying move. Eden owns and resides in a home on Cupertino's Lockwood Drive, roughly half a mile from the Hanson quarry and cement plant. "We need to know exactly what they are talking about," she says. "As always, the devil is in the details, and we have to see what is in the (environmental) documents" before reaching an opinion. Ultimately, the decision will be the county's as to whether to allow the additional mining and its location. That is what matters, she notes. "We don't want any additional impacts, and we hope to have fewer impacts from what is going on there because it's not O.K. the way it is," she says. The news of an alternative site does nothing to address her doubts about Santa Clara County's overall 1I).e ....26 http://sanjose.bizjournals.com/sanjose/storiesI2007 /11105/story5.html ?t=printable 11/7 12007 Cement operator looking for alternative site for quarry expansion - Silicon Valley / San Jose Business Jo... Page 2 of 3 competence to evaluate the proposed mine's environmental impacts, she adds. The State Geology and Mining Board has considered assuming the county's role as the first-line regulator of the nine mines operating in Santa Clara County based on its belief that the county's performance has been irregular and lacking. A county planning official defends its performance. The Hanson mining operation has existed on the Santa Clara County site since at least 1903, Howell says. The cement plant, which is fed by the limestone mine, meets two-thirds of the annual demand from Santa Clara County and half that of the nine-county Bay Area, he says. Hanson was aquired at the end of August by !.!.~!~~.!!?~~g~.~~~.!!!..AQ of Heidelberg, Germany, one of the largest cement-manufacturing companies in the world. The Santa Clara County operation includes the mining pit, the cement manufacturing plant in addition to an aluminum plant that is not now being used. There is also a designated area where dirt and other material not used in manufacturing are deposited for later re-use as fill for the mine when it is reclaimed. That "overburden" now is visible as a smooth ribbon of brown above the hills ofthe Santa Cruz Mountains adjacent to Cupertino, Los Altos and Los Altos Hills. Hanson's operations are likely most familiar to W est Valley residents, who may see its lines of white lights against the mountains' dark hulk during evening commutes north on Highway 280. The facility is open 24- hours a day, seven days a week. Visitors to the Rancho San Antonio Open Space preserve and the Stevens Creek County Park also can see the mine and cement kiln from various vantage points. The operation sits at the west end of Stevens Creek Boulevard. The Hanson quarry and the related operations are not expected to cease for at least another 25 years. Under Hanson's state air-quality board permit, up to 70,000 tractor-trailer trips are allowed to the cement plan annually, which the neighbors also dislike, not only because of the noise but because of the diesel-fuel emissions. Howell says that truck trips to the cement plant would not increase if the limestone mining operations were expanded. According to the Bay Area Air Quality Management District, Hanson is the largest allowed emitter of nitrogen oxides, sulphur dioxide and carbon monoxide in Santa Clara County. Under that permit, its operations may emit 3,224 tons a year of carbon monoxide, up to 309 tons of sulphur dioxide and 1,364 tons of nitrogen oxides. The gases are considered damaging to the environment and human health. The state continues to question Santa Clara County's dedication and ability to monitor the mining operations in its jurisdiction. Some Santa Clara County mining operations have breached the physical limits of the areas that they are allowed to disturb under their existing agreement with the county, according to the State Mining and Geology Board. The county also has failed to collect money as required by law to "reclaim" one now-abandoned quarry and has failed to ensure that adequate financial assurances exist to reclaim other county mining operations once they close. The state has secured in excess of $7.5 million from Hanson to reclaim the Permanente quarry, but says it is uncertain that sum is sufficient. Under state law, the county is supposed to review miners' "financial assurances" annually. The state has threatened to take away the county's oversight of the nine mines, saying that the county failed to do required annual inspections in 2000 and 2001, and that while it did inspections from 2002 through 2005, it issued no violation notices. http://sanjose.bizjournals.comlsanj ose/stories/2007 /11 /05/story5 .html ?t=printable () I<. ---.2 q 11/7/2007 Cement operator looking for alternative site for quarry expansion - Silicon Valley 1 San Jose Business Jo... Page 3 of 3 On Oct. 2, the state sent a certified letter to the county giving it 45 days to correct six continuing oversight problems at the nine mines. The state will hold another hearing to determine if the county has addressed its concerns. Senior Planner Bob Eastwood, who oversees preparation of EIRs for Santa Clara County, defends his office's performance, saying he and his workers are competent to implement the California Environmental Quality Act, which requires the pre-development reviews of projects to determine their effects on such things as air quality, water quality, traffic, and so-called "visual resources." The county's performance ofthat responsibility is separate from mining oversight, he notes. SHARON SIMONSON covers real estatefor the Business Journal. Reach her at (408) 299-1853. All contents of this site @American City Business Journals Inc. All rights reserved. http://sanjose.bizjoumals.com/san j ose/stories12007 111 105/story5 .html ?t=printable (),e"30 11/7 12007