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CC 04-15-03CUPE INO APPROVED MINUTES CUPERTINO CITY COUNCIL Regular Adjourned Meeting Tuesday April 15, 2003 ROLL CALL At 6:10 p.m. Mayor Chang called the meeting to order in Conference Room C, 10300 Torte Avenue, Cupertino, California. City Council members present: Mayor Michael ChangI Vice-Mayor Sandra James, and Council members Patrick Kwok, Dolly Sandoval and Richard L0wenthal. Council members absent: none. Staff present: City Manager David Knapp, Administrative Services Director Carol Atwood, City Attorney Charles Kilian, Community Services Director Steve Piasecki, City Planner Cynthia Wordell, Senior Planner Aarti Shrivastava, and City CJerk Kimberly Smith. Deputy City Clerk Grace Johnson arrived at 7:30 p.m. and relieved Smith.. ORAL COMMUNICATIONS Anna Polman-Black, 21118 Gardena Drive, asked why the City was so anxious to build more shops and houses in an already overcrowded city. She! had heard that Vallco may be converted into a Chinese development but there was already a Chinese market in Cupertino. She considered this new proposal to be counter-productive and not in tt~e best interest of the City. Dennis Brown, an attorney from San Jose representing the buyers of Vallco, said that they recognized and appreciated the invitation to attend the meeting but wanted to wait to speak in public until the close of escrow. He was there to expres~ their interest in working closely with the City to consider all opinions in order to come to a collective end that is productive for the City and its citizens. STUDY SESSION Study session on Vallco. A. Introduction of New Owners , B. Development Agreement C. Bay Area Legal Aid Settlement Agreement D. Vision for the redevelopment of Vallco Fashion Park Commtmity Development Director Steve Piasecki explained that the purpose of the meeting was to provide the history of Vallco and for the Council members to share their objectives and goals with the prospective buyers. He said that buyer Emily Chen had April 15, 2003 Cupertino City Council Page 2 expressed regret for not being able to attend th~ meeting. Two of the other prospective buyers are Alan Wong and John Nguyen. l Piasecki referred to two exhibits, an aerial photograph of Vallco Fashion Park and the latest drawing discussed with the Jacobs Grohp showing some renovation to Vallco including theaters, offices, residential and hotei development. He discussed constraints and opportunities at the site including:: · The development agreement expires in 7006, and there is a potential for 535,000 square feet of additional commercial, office and entertainment uses that can be added to the existing 1.1 million square fbot center · The only condition of the development lagreement and the only provision where the City can deny the assignment of the lagreement to another party is if it cannot be demonstrated that the ice nnk can b~ maintained throughout the term of the development agreement · The settlement agreement from the lawsuit with Bay Area Legal Aid, states that in conjunction with any development of Vallco, the City agreed that one below- market rate housing unit would be provided for every additional 20,000 square feet of added office or commercial. That translates to 25-27 units depending on how much is built out of the 535,000 polential · The General Plan, the City allows up to !1,000 hotel rooms in the Vallco Park area and only 400 have been built · Another constraint is the existing leases. The major anchor tenants have veto authority over any plan changes, whiCh is exercised through their reciprocal easement agreements He said that historically, the goals for Vallco ~ave been relatively consistent. The City has worked with the Jacobs Group to diversify the land uses to include retail, entertainment, lodging, residential, and officei provide a highly walk-able mixed-used suburban village, and do a master plan that shows that this integrates with the HP site. The tools that the City and the Redevelopment Agency have to facilitate development include: · Land-use control in the General Plan · Development review authority · Could attempt to renegotiate the development agreement or do away with it in 2006 or earlier · Could withhold the assignment of the d~velopment agreement that the prospective owner could not maintain the ice-rink · Could assist with improvements such as' redesigning the streets or traffic signals · Could assist with building a parking garage (but need a revenue stream first) April 15, 2003 Cupertino City Council Page 3 The City Council could exercise a mast4r developer process, which uses eminent domain to mm the property over to a Ceveloper that can perform on its vision through a request for proposal and pro-fo~na process Council discussed their view of current conditidns, their vision for the center, and talked about ramifications of a master developer agreement and eminent domain. The comments included: · The ice rink is not a money- maker but itlis a community asset · Vallco is close to the heart of the commuifity and it is also a community asset Want to work collectively with whoever lhe buyer will be and to share the history, issues, and challenges · Vallco should be community oriented nd the new owners should solicit lots of community input · The City should learn from the success e nd failure of other malls · Make Vallco a destination spot, with a :nix of retail and entertainment, and other vital services like a childcare center and ~ocery store · Concern at the appearance of secrecy o~ er the potential owners non-appearance at the meeting · Potential of non-profit groups to be included in the development · Invite the owners (including the developers and architects) to another study session after escrow closes · Excitement about new people bringing Vallco Dennis Brown agreed that Vallco was a comm~ buying it are from the community and they are He thought it was premature to discuss their vi with the City to find a path that works for eve don't have any strict ideas, but do want to dew community. He said there are other potential earlier are the primary players, are significantly Susan Sievert was concerned that Vallco ma article she had read in the Business Journal. S from places with Chinese signage and felt as if did not think this was intentional, and sail Cupertino. Jennylea Sepulveda asked for clarification reg.~ much control the City has over what is create~ food odors coming from the Tin-Tin Asian gro~ change, newness, and economic value to aaity asset and that the people involved in passionate about the future of the center. ;ion but stated that they did want to work ybody. He said that they are flexible and lop something that would be useful to the )wners involved but the three mentioned invested, and are the decision-makers. become an Asian center and noted an he said she felt unwelcome and excluded ~he were an outsider in her own town. She that a common language would unite rding the development of Vallco and how there. She spoke about concem over the cry store. Piasecki explained that the City doesn't screen' tenants regarding what kind of sign they put up or whether they sell merchandise direct~ d toward a particular cultural group in the April 15, 2003 Cupertino City Council Page 4 community, but certain activities might be subbect to review, for example a nightclub. The City doesn't have any control over re-tenanting. Penny Whittaker encouraged the potential buyers to work with the citizens of Cupertino before the plans are drawn out so that the c0m~nunity has buy-in. She feels that having Asian signs instead of English signs is divisive, i Planning Commissioner Gilbert Wong said that there is a need for more education on both sides and suggested that something be p~t in the Scene regarding diversity and working together as a community. ~ Anna Polman-Black was concemed that seniors have no future here because there was no help from the Valley Transportation Authority (VTA). Jesse DeWath said he has been in the Cupertino school system since first grade and enjoys the diversity. He liked to see stores that/he would never see anywhere else in the country and considered it an advantage. He wan~ed Cupertino to remain diverse. ADJOURNMENT At 7:45 p.m. the meeting was adjourned. Kimberly Smit_l.t.hfCity Clerk