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D. Planning Commission Staff Report of March 27, 2012 PLANNING COMMISSION STAFF REPORT Agenda Item No. Agenda Date: March 27 , 201 2 Applications: M -2011 -09 (EA -2011 -18), ASA -2011 -24 , TM -2011 -04 Applicant: Kevin Dare, 500 Forbes, LLC Location: North side of Stevens Creek Boulevard (3 vacant lots) on both sides of Finch Avenue and west of N. Tantau Avenue A PN : 316 -20 -085, 316 -20 -078, 316 -20 -079 APPLICATION SUMMARY : 1. Modifications (M -2011 -09) to a previously -approved Master Use Permit (U -2008 -01), Architectural and Site Approval (ASA -2 008 -06) and Tree Removal Permit (TR -2008 -08) to amend the master plan for the 18.5 acre Main Street mixed use development to allow for a hotel of up to 250 room s ; 69 ,700 square feet of retail space, a 0.8 -acre town square, up to 289,750 square feet of offi ce space; 143 senior age -restricted condominium units; a 60,000 square feet of athletic club or retail space , a 0 .75 -acre park , removal of 61 trees and relocation of 17 trees; and modification to the master Architectural and Site Approval. A lternate devel opment options include a 105 unit market -rate apartment complex in -lieu of the 60,000 square foot athletic club /retail space and 9,000 square feet of additional retail space on the ground floor of the parking garage . 2. Architectural and Site Approval (ASA -2011 -24 ) for ten retail buildings (Retail Shops 1 -7 and Pads 1 -3) totaling 62,200 square feet; a hotel with up to 250 rooms; a 0.75 acre park and a 0.8 acre town square; a four -level parking garage with one level of underground parking for the hotel/retai l ; two office buildings up to 289,750 square feet; and a three -level above ground parking garage with one level of underground parking for the office uses . 3. Tentative Map (TM -2011 -04) to subdivide 3 parcels (approximately 18.5 acres) into 6 fee simple parc els and 143 senior a ge -restricted condominium units . 4. Modification to Condition No. 5 as required by the City Council on January 20, 2009 , which requires a 400 -person banquet hall for a hotel of over 160 rooms. 5. Extension of permit to expire five years fro m the date of approval of this modification . RECOMMENDATION: Staff recommends that the Planning Commission recommend approval of the draft resolutions (See Attachments 1, 2 and 3) for the following applications and environmental documentation to the City Council : 1. 2012 Addendum to the 2009 Final Environmental Impact Report 2. Modifications (M -2011 -09) to the previously -approved Master Use Permit (U -2008 -01), Architectural and Site Approval (ASA -2008 -06) and Tree Removal Permit (TR -2008 -08) to allow for a hot el of up to OFFICE OF COMMUNITY DEVELO PMENT CITY HALL 10300 TORRE AVENUE • CUPERTINO, CA 95014 -3255 (408) 777 -3308 • FAX (408) 777 -3333 • planning@cupertino.org M -2011 -09, ASA -2011 -24, TM -2011 -04 Main Street Cupertino March 27, 2012 250 rooms; 138 ,700 square feet of retail /athletic club space, a 0.8 -acre town square, up to 289,00 0 square feet of office space; 143 senior age -restricted condominium units or 105 market -rate units ; a 0 .75 -acre park , removal of 61 trees and rel ocation of 17 trees ; 3. Architectural and Site Approval (ASA -2011 -24); 4. Tentative Map (TM -2011 -04) for a total of six lots (Lots 1 -5 and one lot combining Lots 6 and 7 ); and 5. Approve modification of Condition No. 5 to replace the requirement for a 400 -person ba nquet facility with a 6,500 square foot restaurant and meeting space ; and 6. Extension of permit to expire five years from the date of approval of this modification . Please note that the Environmental Review Committee's recommendation will be presented to th e Planning Commission at the hearing. The Planning Commission should also provide comments and direction on the following a dditional seven issues (a detailed discussion on each of the issues is outlined later in the staff report): 1. Parcelization 2. Mix of retail and residential uses 3. Office Use and Allocation - Major Companies General Plan Requirement 4. Parking garage for the office development 5. Retail pads in the town square 6. Type , size and amenities in the proposed hotel 7. Alternative site plan and park locatio n PROJECT DATA: General Plan Designation Heart of the City Specific Plan Area Specific Plan Heart of the City Specific Plan Area Zoning Designation P (CG, OP, ML, Res) Lot Size (3 parcels) 804,604 sf (18.5 acres) Total Building Area 675,174 sf Total Parking Up to 2,191 spaces Environmental Assessment Addendum to the 2009 Final Environmental Impact Report BACKGROUND: Existing Conditions and Surroundings The project site consists of three (3) vacant parcels on the north side of Stevens Creek Boulev ard on both sides of Finch Avenue, west of N. Tantau Avenue and south of Vallco Parkway. The site is surrounded by the existing Metropolitan and future Rosebowl mixed use developments to the west , light industrial office buildings occupied by Apple to the north along Vallco Parkway, and an office complex occupied by Apple and Verigy to the east across N. Tantau Avenue. Previous Approval On January 20, 2009, the City Council approved the Master Use Permit (See Attachment s 4 and 5 for previously approved pl ans and approved conditions ) and associated applications for the Main Street development consisting of: • Up to 150,000 sf of retail (including the alternate options) • 100,000 square foot office building M -2011 -09, ASA -2011 -24, TM -2011 -04 Main Street Cupertino March 27, 2012 • Up to a 250 room hotel (if over 160 rooms, full ame nities required including a 400 -person banquet hall • 145,000 square foot athletic club • 160 senior age -restricted housing units • 0 .75 acre park , owned and maintained by the applicant, on the southwest corner of the site adjacent to the Metropolitan mixed use development, allowing for public use , community events and City -approved events or activities • 0 .8 acre town square owned and maintained by the applicant allowing for public use, community events and City -approved events or activities • Tentative map to subd ivide the three parcels into five parcels (no condominium units were approved ) • Modification to Vallco Parkway consisting of one traffic lane east bound, one bike lane east bound, angled parking along the south side of Vallco Parkway and no changes to the w est bound lane configuration • Five -year phased development approval requiring completion of the mixed -use development by January 20, 2014 Alternate development options approved allowed a maximum of retail space up to 195,000 * square feet including the foll owing in addition to the above approval : • 36,000 square feet of retail space in lieu of the athletic club on the northwest corner of Stevens Creek Boulevard and N. Tantau Avenue (the 145,000 square foot athletic club with a capped membership of 9,000 member s was equated to 98,800 square feet of retail commercial space. This option of retail space in lieu of the athletic club would use 36,000 square feet of retail square footage allocation from the 98,800 square feet dedicated to the athletic club) • Additiona l 9,000 square feet of optional retail space on the ground floor of the parking garage along Vallco Parkway • 60,811 square feet of retail space at the northwest corner of Vallco Parkway and Finch Avenue in lieu of 38,600 sf of retail space in the same locat ion (for a net addition of 22,211 square feet of retail space). *Please note that the 2009 Final Environmental Impact Report allow ed up to 150,000 square feet of retail and an additional equivalent of up to 98,800 square feet of retail based upon the equi valency of a 145,000 square foot athletic club. However, additional environmental analysis w as to be completed to ensure that there would be no new and additional impacts with these options . DISCUSSION: Proposed Modification to the Master Use Permit T he proposed Modification to the Master Use Permit essentially involves the same uses as in the 2009 previously -approved plan, including a mix of retail, office, hotel, senior housing, town square, park and p arking garage, with the moving of these uses to d ifferent spots wit hin the 18 -acre site and changing the square footages of these uses than were previously approved. However, a new use, market -rat e apartments, has been added as an alternate option that was not in the previously -approved plan or alterna te plans. In addition to modifying the Master Use Permit, the applicant is concurrently requesting approval of a tentative map to subdivide the properties into seven lots, one of which (proposed Lot 2) would allow for the senior units to be condominium un its, an updated tree removal plan, and architectural and site approvals for the office buildings, hotel, retail and parking garage. Similar to the 2009 approvals, the applicant is requesting approval of the proposed scheme (Scheme 1A) and interchangeable a lternate schemes (Schemes 1B, 1C, 2A and 2B) allowing for diffe rences, particularly on the northwest corner of the site (proposed 1.8 acre Lot 1 parcel) that could either be athletic club, retail, M -2011 -09, ASA -2011 -24, TM -2011 -04 Main Street Cupertino March 27, 2012 market rate apartm ents or additional retail space, and incr easing retail square footage by adding retail to the ground floor of the parking garage. The proposed development requires compliance with the General Plan, Heart of the City Specific Plan, and South Vallco Master Plan, and will comply with these required plans with the recommended conditions of approval. The architectural design of the site will basically follow the agrarian -theme as was previously -approved in 2009 for the retail buildings; however, some changes to the previous conceptual designs for othe r buildings have been updated due to detailed architectural drawings being submitted this time around and the change in location of these buildings, including the office buildings and hotel. Parking, site access, and traffic have also been reviewed for the proposed plan and alternate schemes that indicate all of the proposed schemes can sufficiently accommodate these requirements in accordance with the Addendum to the 2009 Final Environmental Impact Report prepared for this project that essentially states n o new or additional significant environmental impacts would be created. The applicant is requesting to modify the Master Use Permit and sit e plan (see Attachment 6 as outlined by the applicant’s letter) which include the following comparative tables bet ween the 2009 approved plans and the proposed 2012 plans . The Plan 1 scheme variations involve only one housing type, the senior housing complex. The Plan 2 scheme variations involve both senior housing and market rate apartments. Plan 1 Scheme Plan 2 Scheme Comparison of the 2009 Approved Plan and the 2012 Proposed Plan (Scheme 1A) Table of Differences in Plan 1 Schemes Proposed Change to 2009 Approved Plan 2012 Proposed Plan Scheme 1A 2012 Proposed Scheme 1B 2012 Proposed Scheme 1C Tentative Map Subdivide from three to five parcels Subdivide from three to six parcels and one parcel into 143 senior age -restricted condominium housing units Same as 1A Same as 1A M -2011 -09, ASA -2011 -24, TM -2011 -04 Main Street Cupertino March 27, 2012 Proposed Change to 2009 Approved Plan 2012 Proposed Plan Scheme 1A 2012 Proposed Scheme 1B 2012 Proposed Scheme 1C Athletic Club • 145,000 sf with membership limited to 9,000 members • Located on the northwest corner of Stevens Creek Blvd. and N. Tantau Ave. • Reduce d optional 60,000 sf • Relocate to the northwest corner of the project site Same as 1A • Either same as 1A; OR • Eliminate the athletic club (replacing w/additional retail) Office • Three -s tory, 100,000 sf office • Located east of the town square • Increase d office square footage to a total of 289,750 sf (189,750 sf net increase) in two four -story buildings (144,875 sf each) • Relocated to the northwest corner of Stevens Creek Boulevard and N. Tantau Ave. Same as 1A Same as 1A Senior Housing • 160 units • No condominiums • Reduced to 143 units • Request to condominiumize Same as 1A Same as 1A Retail Square Footage Up to 150,000 sf • Reduced to 69,700 sf • Reduced to 78,700 sf (includes 9,000 sf retail in parking garage) • Reduced to 138,700 sf . if additional retail replaces athletic club site; OR • Reduced to 78,700 sf if athletic club remains in the plan Hotel • Up to 250 rooms, full amenities hotel • Located facing Stevens Creek Boulevard • Over 160 rooms requ ire banquet hall to serve 400 persons • 180 rooms • Relocated to east of town square & facing Vallco Parkway • Request to revise Condition No. 5 as Same as 1A Same as 1A Driveway • Four driveways along Stevens Creek Boulevard • Three driveways along Vallco Parkw ays • Reduce to three driveways along Stevens Creek Boulevard • Increase to five driveways along Vallco Parkway Same as 1A Same as 1A Retail • Primarily facing Stevens Creek Blvd. , surrounding town square, and facing Vallco Parkway • No retail buildings in town square • Add one or two jewel box retail buildings (total not to exceed 3,000 sf) in the town square • Add retail along the south side of the parking garage (farmer’s market) Same as 1A Same as 1A Parking Garage /Parking Supply • Five level parking garage • 1,691 spaces • Garage -- Reduce to 3 and 4 levels above ground with one level underground • 2,159 spaces • Garage --Same as 1A • 2,159 spaces • Garage --Same as 1A • 1,956 spaces M -2011 -09, ASA -2011 -24, TM -2011 -04 Main Street Cupertino March 27, 2012 Proposed Change to 2009 Approved Plan 2012 Proposed Plan Scheme 1A 2012 Proposed Scheme 1B 2012 Proposed Scheme 1C Phasing • Town square, park and retail part of Phase 1. • Other uses in Phase 2. • Two office build ings, parking garage, retail, hotel, town square in Phase 1. • Park, athletic club, and senior housing in Phase 2. Same as 1A Same as 1A Extension • Approval for 5 years till 2014 • Request extension for five years till 2017 Same as 1A Same as 1A Note: All ret ail schemes include a maximum of 10% restaurant uses, similar to the original approval. Table of Differences in Plan 2 Schemes Proposed Change to 2009 Approved Plan 2012 Proposed Plan Scheme 2 A 2012 Proposed Plan Scheme 2B Tentative Map Subdivide fro m three to five parcels Subdivide from three to six parcels and one parcel into 143 senior age -restricted condominium housing units Same as 2A Athletic Club • 145,000 sf with membership limited to 9,000 members • Located on the northwest corner of Stevens Cre ek Blvd. and N. Tantau Ave. • Eliminate the athletic club • Eliminate the athletic club Office • Three -story, 100,000 sf office • Located east of the town square • Increase office square footage 189,750 sf to a total of 289,750 sf in two four -story buildings (144,875 sf each) • Relocated to the northwest corner of Stevens Creek Boulevard and N. Tantau Ave. Same as 2A Senior Housing • 160 units • No condominiums • Reduced to 143 units • Request to condominiumize Same as 2A Retail Square Footage • Up to 150,000 sf • Reduced to 83,200 sf Same as 2A Hotel • Up to 250 rooms, full amenities hotel • Located facing Stevens Creek Boulevard • Over 160 rooms require banquet hall to serve 400 persons • 180 rooms • Relocated to east of town square & facing Vallco Parkway • Request to revise Cond ition No. 5 Same as 2A M -2011 -09, ASA -2011 -24, TM -2011 -04 Main Street Cupertino March 27, 2012 Proposed Change to 2009 Approved Plan 2012 Proposed Plan Scheme 2 A 2012 Proposed Plan Scheme 2B Driveway • Four driveways along Stevens Creek Boulevard • Three driveways along Vallco Parkways • Reduce to three driveways along Stevens Creek Boulevard • Increase to five driveways along Vallco Parkway Same as 2A Retail • Primarily facing Stevens Creek Blvd. , surrounding town square, and facing Vallco Parkway • No retail buildings in town square • Add one or two jewel box retail buildings (total not to exceed 3,000 sf) in the town square • Add retail along the south side of the parking garage (farmer’s market) Same as 2A Parking Garage /Parking Supply • Five level parking garage • 1,691 spaces • Garage -Reduce to 3 and 4 levels above ground with one level underground • 2,163 spaces • Same parking garage as 2A • 2,131 spaces Phasing • Town square, park and retail part of Phase 1. • Other uses in Phase 2. • Two office buildings, parking garage, retail, hotel, town square in Phase 1. • Park, athletic club, and senior housing in Phase 2. Same as 2A Extension • Approval for 5 years till 2014 • Request extension for five years till 2017 Same as 2A Note: All retail schemes include a maximum of 10% restaurant uses, similar to the original approval. Summary of Proposed Development Schemes Land Uses 2009 Approved Scheme 2012 Scheme 1A 2012 Scheme 1B 2012 Scheme 1C 2012 Sche me 2A 2012 Scheme 2B Retail (sf) 127,789 69,700 78,700 138,700 * 83,200 92,200 Athletic Club (sf) 145,000 60,000 60,000 --- --- Office (sf) 100,000 289,750 289,750 289,750 289,750 289,750 Residential (du) Senior 160 143 143 --- 143 143 Market -Rate --- --- --- 120* 105 105 Hotel (rooms) 250 180 180 180 180 180 Parking Supply 1,691 2,191 2,159 1,956 2,163 2,131 Additional Schemes - Schemes 3A and 3B Keeping in mind that the City had encourage d retail and hotel uses on the site as part of the origi nal approval, the following two additional schemes (Schemes 3A and 3B) were reviewed in the EIR Addendum to provide maximum flexibility to the decision -makers . The schemes do not change the site plan layout. Hotel rooms were increased to 250 rooms, which Council had approved as part of the M -2011 -09, ASA -2011 -24, TM -2011 -04 Main Street Cupertino March 27, 2012 original project. Additionally, the market -rate units were removed and the retail/athletic club option was retained on the northwest parcel to study the impacts of maximizing retail development . The matrix below outline s the mix of uses. Note s : *This option includes 9,000 square feet of retail in the ground floor of the parking garage originally approved by Council in 2009. ** All retail options include a maximum of 10% restaurant uses, consistent with the original approval. DISCU SSION Compliance with the General Plan and Heart of the City Specific Plan The proposed project requires compliance with the General Plan with respect to height, setbacks and land uses, and to the Heart of the City Specific Plan with respect to specific us es, development standards, design guidelines and streetscape design. The proposed uses are in compliance with the General Plan and Heart of the City Specific Plan with the recommended conditions of approval. The project proposes a minimum 35 -foot setback along Stevens Creek Boulevard with a 1.5:1 setback to height ratio from the curb line per the City’s General Plan. The office building on the corner along N. Tantau Avenue is proposed to have a 3 5 -foot setback and a 1.5:1 height to setback ratio. The fron tage along Vallco Parkway is proposed to have a minimum setback of 15 feet. A condition of approval has been added that will require compliance with the Heart of the City Specific Plan requirements, including setbacks, unless approval of an Exception appli cation is approved for lesser setbacks. The proposed conceptual landscape plans indicate a double row of evergreen ash trees to be planted along the Stevens Creek Boulevard streetscape in accordance with the Heart of the City streetscape design requireme nts. Additionally, two 48 -inch box specimen oak trees will announce the entry to the development along Stevens Creek Boulevard. Along the N. Tantau and Vallco Parkway street frontages, there is an existing double row of shamel ash trees. The applicant is still requesting to maintain these trees where they are in healthy condition to maintain the existing streetscape character of the already mature trees. Although there is a benefit to retain the existing healthy and mature shamel ash trees along Vallco Parkway, staff recommends that this streetscape be replanted with a Bradford Pear tree consistent with the adjoining future mixed use Rosebowl site since the shamel ash have created numerous problems uplifting sidewalks along Vallco Parkway and were the re asons they were replaced along the north side of Vallco Parkway. Land Use Additional Schemes Scheme 3A Scheme 3 B Retail 138,700 * 69,700 Athletic club 60,000 Restaurant ** - - Senior 143 143 Market -rate - - Hotel 250 250 Office 289,750 289,750 M -2011 -09, ASA -2011 -24, TM -2011 -04 Main Street Cupertino March 27, 2012 A condition of approval (See Condition No. 32 of Attachment 1) requires detailed landscape plans to be submitted to the Director of Community Development for review and approval prior to is suance of building permits. South Vallco Master Plan The project site is located within the South Vallco Master Plan area. A master plan (See Attachment 7) was prepared and developed for this area by the applicant in 2008 in conjunction with the applica nt’s intentions to submit a development application for the Main Street project, and incorporated the concept of “Main Street” to reflect the vision of a “downtown -ish” pedestrian oriented, family -friendly, accessible and well landscaped mixed use developm ent. The South Vallco Master Plan was adopted in September of 2008, and the applicant subsequently received approval of the Main Street mixed use development project in January of 2009. The South Vallco Master Plan provides a policy framework to coordina te developments within the South Vallco area, including streetscape furniture and landscape treatments. The proposed project will be required to comply with the South Vallco Master Plan in accordance with Condition No. 42. Site Access , Traffic and Park ing The proposed project involved the preparation of a revised site analysis, traffic and parking analysis (See Appendix C of the Addendum to the Final EIR in Attachment 13d ) to analyze if any new or additional significant site access, traffic and parking impacts would be generated as a result of the proposed project, Scheme 1A, and all of the alternate schemes, including the schemes that involve increasing the number of hotel rooms from 180 to 250 rooms. Site Access and Circulation The revised site acce ss analysis reviewed the proposed driveways and internal circulation system, including the creation of the town square resulting from the proposed vacation of Finch Avenue. The proposal involves three driveways along Stevens Creek Boulevard and five drive ways along Vallco Parkway. There will be a signalized full -access driveway on Stevens Creek Boulevard and Finch Avenue, two right -turn only driveways on Stevens Creek Boulevard, three stop -signed controlled full access driveways on Vallco Parkway, a right -turn only driveway on Vallco Parkway. Additionally, in 2009, Vallco Parkway was approved with the plan to narrow the eastbound lane to one lane with angled parking and a five -foot wide bike lane. The westbound lanes of Vallco Parkway will be retained as is with this project. The analysis indicated that the driveways will provide sufficient ability to accommodate vehicle queues exiting the site and garage. The town square will allow for circulation of vehicles in both directions around the square with an i nternal roadway width of 24 feet which can sufficiently accommodate both vehicle maneuvers and emergency access. Pedestrian access will be permitted by the recordation of public access and public pedestrian easements on the final map to allow access on and through the development with sidewalk and walkways provided around the perimeter of the development and internally throughout the site. Bicycle circulation was also reviewed and found that maintaining the existing bike lanes on Wolfe Road, Tantau Avenue, Stevens Creek, and Vallco Parkway with minor improvements to accommodate the new Vallco Parkway street alignment and driveways would not create a significant impact to bicycle facilities. Additionally, the site is serviced by transit (bus) routes; however, no new or additional impacts to existing transit service is expected. M -2011 -09, ASA -2011 -24, TM -2011 -04 Main Street Cupertino March 27, 2012 Traffic Analysis The result of the traffic analysis indicated that none of the schemes would trigger new or additional significant traffic impacts than were approved in the 2009 Fin al Environmental Impact Report. A trip generation study was conducted that indicated that all of the schemes (including 3A and 3B) would generate between 9,490 (Scheme 2A) and 10,938 (Scheme 1C) new daily trips. Compared to the 2009 approved plan, the prop osed plan and alternate schemes would generate fewer daily and PM peak hour trips. The 2009 approved plan was shown to generate 13,751 new daily trips and had 1,264 PM peak hour trips. The 2009 Traffic Impact Analysis (TIA) and Environmental Impact Report (EIR) identified significant impacts and feasible mitigation measures for five study intersections including Lawrence Expressway/Homestead Road, Wolfe Road/Vallco Parkway, Stevens Creek Boulevard /I -280, Lawrence Expressway/I -280 and Lawrence Expressway/Bol linger Road, and three freeway segments along the I -280 eastbound freeway and three freeway segments along the I -280 westbound segments. All of the proposed schemes would impact the same locations and same segments; however, these schemes would not result in different intersection and segment impacts than approved by the 2009 TIA and EIR. Therefore, no new and additional significant traffic impacts will be generated with these schemes. Parking The analyses showed that all of the schemes could meet the p rojected parking demand for the site based upon the number of parking spaces and the parking layout of each of the schemes with both a shared parking scenario between all uses (except for the portion of parking garage for the office) and no -shared parking scenario . The shared parking plan assumes shared parking between all uses, except for the portion of the parking garage for the offices. The applicant indicated that the office parking may not be shared parking. The no -shared parking scenario assumes non e of the parking is shared among the uses, assuming only that the hotel and retail would share parking of the 4 -level parking garage, the surface parking and street parking along Vallco Parkway, and all other uses would provide their own parking by way of underground garages for the senior housing, athletic club or alternate market -rate units, and a separated portion of the parking garage for the office buildings. Further, the report indicated that all of the schemes, except for Scheme 1C could meet the Ci ty’s parking code requirements; the 1C plan would only be short 41 parking spaces if strictly dependent upon the City’s parking codes to meet parking requirements. The table below indicates that all schemes would have a surplus of parking based upon both t he shared parking demand scenario (using the Urban Land Institute shared parking factors) and the no -shared parking demand scenario (using the Institute of Transportation Engineers demand rates). It should be noted that the area of restaurants is assumed t o be a maximum of 10% of the total retail, similar to the previous approval. The table below indicates the parking and trip generation analysis for all schemes: M -2011 -09, ASA -2011 -24, TM -2011 -04 Main Street Cupertino March 27, 2012 Tree Removals The proposed tree removal plan (See Page L2.10 of Attachment 14 c ) indicates that 61 trees will be removed, and 17 trees will be relocated. The proposed plan is generally consistent with the previously -approved tree removal application, with the exception that two trees have been removed from the property since the previous approv als, including an Aleppo Pine tree (Tree #113) that was to remain in the former location of the proposed hotel along Stevens Creek Boulevard, and the dead valley oak tree (Tree #126) that was to be removed in accordance with the previous approval (See Atta chment 8). Architectural and Site Review In addition to the master site plan and alternatives, the applicant has also submitted separate Architectural and Site Approval applications (See Attachment 14 a and b of Plan Set) for the buildings that will be constructed in Phase 1 of the development. These include retail shops 1 – 7 and retail pads 1 -3, two four -story office buildings, a five -story 180 -room hotel, and a parking garage that encompasses both 3 and 4 levels with an underground level of parking. Additionally, details have been provided for the town square area. However, details on the park design, the senior housing and the athletic club/additional retail area have not been submitted since these are part of Phase 2 of the development. The retail buildings reflect the same agrarian architectural style as in the previously -approved Master Use Permit. This architectural style has been retained since it was supported by the community during community meetings that were held in 2008 prior to approval o f the Master Use Permit. The retail pad buildings in the town square area also have an agrarian architectural theme. Architectural details include use of tower features, variations in roof shape and heights, cobblestone stone veneer, standing seam metal ro ofing, board and batten siding, awnings, wood trim details and natural color tones with brighter color accents. The proposed office buildings have been designed with a modern architectural design that is reminiscent of the Netflix building in Los Gatos. The buildings will have stucco siding accented by horizontal wood elements, “travertine” style cut stone on the tower entries and building corners, deep recessed windows M -2011 -09, ASA -2011 -24, TM -2011 -04 Main Street Cupertino March 27, 2012 and slate tile roofing. The office buildings have also been designed with similar col ors to match the retail building colors. The hotel building is proposed as a Marriott Residence Inn. The design includes use of stucco exterior with foam trims around the windows, wood finish eave brackets below the roof line, faux balcony railings along the top floor windows, stone veneer, fabric awnings and wood trellises along the base and pedestrian level of the building. Varied colors of olive, red, cream and orange are proposed to accent the building elevations. The parking garage will have a stucco exterior with finial trims, tower elements with stone veneer base, metal planting trellises at the pedestrian level base of the building, and historic Cupertino imagery boards. The garage colors will be of color tones to match the retail buildings in the development. The City’s Architectural Advisor (See Attachment 16) and staff have reviewed the master site plan, and architectural and site plans submitted for the buildings in Phase 1. Key additional recommendations are listed below: 1. Revise the ar chitectural design of the retail pad building(s) in town square from an agrarian and opaque look to a park pavilion/kiosk style architecture with greater storefront glazing to minimize its visual impact in the town square. 2. Require active uses to line the t own square – locating the restaurant, lobby and group meeting spaces in the hotel and the entrance lobby and seating spaces/cafe in the athletic club around the town square. 3. Enhance the architectural elevations and detail the floor plans of the office buil dings per Condition No. 29B. 4. Enhance the architectural elevations of the hotel building per Condition No. 28 B. 5. Enhance the architectural elevations of the parking garage per Condition No. 28 B. The applicant has reviewed and agrees with these changes exc ept for the design of the retail pads in the town square . This issue has been discussed in the section titled “Items for the Planning Commission’s Consideration” later in this report. Market Rate Apartments and Student Generation Analysis Schemes 1C, 2A and 2B have the ability to include market rate apartments to the development project. The applicant has indicated that the apartment complex would be part of Phase 2 if developed; therefore, there are no plans at this time other than the schematic location and outline of the apartment complex. However, the applicant has clarified that the proposed apartments are intended to be marketed towards single or couple professionals, rather than to families since they are proposed as studios and one -bedroom units. A student generation analysis and fiscal impact report (See Attachment 9) has been prepared by Schoolhouse Services dated January 2012 for a maximum of 120 market rate apartments units which estimates a student generation of 32 students. An apartment comp lex of 120 units may be accommodated if no senior housing is proposed. If senior housing is proposed, then the number of market rate apartment units would be decreased to 105 units to meet the Heart of the City Specific Plan density allowance of 35 units/a cre. Based upon 120 units, the breakdown of projected students is 18 elementary students, 7 middle school students and 7 high school students based upon a student generation rate of .15 per unit for elementary students, .06 per unit for middle school stude nts and .06 per unit for high school students. M -2011 -09, ASA -2011 -24, TM -2011 -04 Main Street Cupertino March 27, 2012 The student generation rates are based upon an average rate for multi -family housing in the school district and rates for specific multi -family developments currently in Cupertino. The applicant will be requi red to pay one -time development fees for this project that will provide revenue for both Cupertino Union School District (CUSD) and Fremont Union High School District (FUHSD). Because the student generation from this development is fairly low, the estimate d one -time development fees for this project will exceed its share of the costs of additional school facilities. The project’s share of operational costs attributable to the development will slightly exceed its share of operational revenue based upon prop erty taxes from the development of $887 per student for CUSD. However, the project is anticipated to create a surplus of $55,000 per student of operational revenue for FUHSD. Vacation of Finch Avenue The existing public street, Finch Avenue, which runs th rough the development, is proposed to be vacated by the City. Public and pedestrian access easements will be required on the new realigned private street system in the development around the town square to continue to allow public access onto the site and through the site between Stevens Creek Boulevard and Vallco Parkway. Covenants, Codes and Restrictions (CC&Rs) The applicant has submitted draft CC&Rs (See Attachment 10) for the City to review that discuss the provision of the following: • Description of the center and property rights • Common easement areas including the public and private pedestrian and vehicular easements • Separate joint use agreements for the town square and the park • Center association, including membership, voting, administration, duty a nd powers • Parking and roads • Building maintenance and operation • Use restrictions Upon preliminary review of the CC&Rs, the City Attorney and staff have recommended additional provisions outlined in Condition No. 22 . The final CC&Rs shall require approval by the City Attorney. ITEMS FOR THE PLANNING COMMISSION ’S CONSIDERATION 1. Tentative Map The proposed tentative map and the alternative tentative map (See Attachment 15) indicates subdividing the three existing parcels into seven fee simple parcels as fol lows: • Lot 1 - 60,000 square foot athletic club/additional retail space, or alternatively as shown in Scheme 2A and 2B, a 105 -unit market rate apartment complex. • Lot 2 - the 143 unit senior age -restricted housing complex (proposed as condominiums). • Lot 3 - the hotel building with its associated restaurant on the ground floor facing town square. • Lot 4 - consists of all retail buildings including retail shops 1 -7 and retail pads 1 -3, the town square, the park, and all internal roadways associated with the d evelopment. The internal roadways will have public pedestrian and vehicular access easements to allow for public pedestrian and vehicle access use. Additionally, the town square and the public park will also have a public access use as well for use by the public and for City community events. • Lot 5 - the 4 -level western portion of the parking garage that will serve the hotel and retail parking. • Lot 6 - one of the four -story office buildings and the 3 -level eastern portion of the parking garage for the o ffice building. M -2011 -09, ASA -2011 -24, TM -2011 -04 Main Street Cupertino March 27, 2012 • Lot 7 will accommodate the corner four -story office building at Stevens Creek Boulevard and N. Tantau Avenue. Lot 5 and Lot 7 are two parcels proposed in addition to the previously approved project. In addition, the applicant is proposi ng condominium units for the senior housing. Staff recommendation – The creation of multiple parcels is highly discouraged in the Heart of the City Specific Plan (Policy 3 under Policy Framework ). One of the key reasons is that by adding multiple owners into a development, parcelization reduces flexibility of uses on a site, makes the operation of a project in a development more difficult and also discourages future development. Therefore, staff is recommending only six parcels including Lots 1 through 5 and combining Lots 6 and 7 ; one parcel for each type of use. Staff does not recommend Lot 7, which is a further division of the office parcel or approving the senior units as condominiums since this would seriously impact operation of the mixed -use parce l, increase conflicts between the senior units and surrounding retail, and hamper future development of this key parcel. This is consistent with the past approval, which allowed parcelization of lots based on uses and did not include condominiumization of the residential units. 2. Mix of Retail and Residential Uses As noted earlier, the retail area in the development has been reduced to almost 50%. Upon review of the proposed 2012 schemes, staff is concerned about the changes related to retail square footage , proposed market rate apartments and senior condominium units since these schemes seem to significantly change the focus of retail development and the mix of uses previously approved in 2009. As part of the new proposal, the applicant also proposes rem oving a site originally reserved for retail/athletic club and converting it to a residential site for 105 market -rate apartments. This would not only impact the retail mix, it would also convert a site that could have active retail uses into one that has residential uses on most of the ground level which would not be compatible with the activity on the site. Staff recommendation – This site is of great economic importance to the City in terms of its ability to general future fiscal revenue. Staff believes that the retail and residential mix is key to preserving this ability. Staff therefore believes that the retail area should be allowed at the maximum amount possible – 138,700 square feet. Regarding housing, although the school impacts do not appear to be significant per the analysis, and the School District agrees that this number of students in and of itself is not significant, staff still believes that the two housing developments will seriously impact the vitality of the development, synergy of uses and future revenue generation potential on this key parcel. Therefore, we do not recommend residential developments on two parcels. While senior housing will not have an impact on schools, the market -rate units are designed to a younger demographic, whic h is compatible with a downtown, mixed -use environment. So, both developments have their benefits. Staff is requesting a recommendation from the Planning Commission as to the type (s) of residential units that should be allowed . It should be noted that i f the retail, hotel and office area are kept to the maximum, the maximum number of market -rate units allowed would be 33 units, to prevent significant traffic impacts. 3. Office Use and Allocation - Major Companies General Plan Requirement The modified proj ect requests an increase of about 189,750 square feet of additional office space and a relocation of that space in the eastern corner of the project. M -2011 -09, ASA -2011 -24, TM -2011 -04 Main Street Cupertino March 27, 2012 The Master Use Permit approved in 2009 received 100,000 square feet of office allocation from the N. De Anza Boulevard area since there was no office allocation available in the South Vallco Master Plan area at the time. This office allocation did not carry restrictions regarding the type of office use. At the time of the original project approval, an optio n to include 20 5 ,000 square feet of office space was not approved. Concerns at the time were that the office use was not an active space or one that could be compatible with a downtown environment. The proposed Modification to the Master Use Permit wil l require additional office allocation. However, since there is not sufficient office allocation in other areas within the City, even if combined, the applicant is requesting that the 189,750 square feet of additional office allocation needed come from the Major Companies office allocation pool. Currently, the available allocation from this pool is 633,053 square feet. It is anticipated that Apple will also require allocation from this pool for its new campus, but there would still be sufficient allocation even with Main Street’s use from this pool. The restriction with this office allocation is based upon General Plan Policy 2 -20 (Diversity of Land Use), Strategy 3 which requires that “(n)ew office development must demonstrate that the development positivel y contributes to the fiscal well being of the City.” Essentially, this means that new office developments would have to provide tax -revenue generation to the City. It should be noted that in order to meet the requirement of General Plan Policy 2 -20 (Diver sity of Land Use), staff is recommending a condition (Condition #4 ), which requires that “(n)ew office development must demonstrate that the development positively contributes to the fiscal well being of the City” in accordance with “Strategy 3 (Major Com panies). The applicant is requesting to pay an in -lieu fee to meet this requirement. However, the City Attorney has determined that an in -lieu payment will not meet the General Plan intent. Staff recommendation - There are several successful mixed -use pro jects that include office space. The Bay Meadows development in San Mateo and Santana Row in San Jose are examples of such projects. Office use can help provide daytime activity in a downtown and can be compatible if properly designed. The project propo ses a connection from the proposed office space to the rest of the development. Additionally, the southeast corner of the project site is proposed to be designed as a green space with public art, areas for the public and serves as an entryway into the Cit y from the east. Therefore, staff supports the office development use in the new proposal and supports the G eneral P lan allocation. Staff is requesting the Commission’s recommendation on giving the applicant an allocation in the amount of 189,750 squa re feet from the Major Companies office allocation pool. 4. Hotel - Type , Size and Banquet Facility The proposed hotel (See Attachment 14b ) is a five -story 180 -room Mariott Residence Inn. This type of hotel is a business -style hotel that essentially cater s towards business travelers and provides limited amenities such as conference and meetings rooms, convenience -store type shops, and restaurants with limited service. It is not proposed as a full service, full amenities high -end four or five star hotel wh ich typically provide amenities such as banquet hall facilities, restaurants, fitness and recreation centers, spas and the like. In 2009, when the Council approved the hotel with up to 250 rooms, it was envisioned that the hotel would be a four or five sto ry full amenities hotel. The hotel was also conditioned to require full amenities with a 400 person banquet hall if over 160 rooms were proposed. The applicant has indicated that although the hotel is proposed with more than 160 rooms, he would like to request relief from the condition of approval requiring the full amenities hotel with a 400 -person banquet hall. In lieu of this, the applicant indicates that the hotel will provide a restaurant at the ground level facing town square that will have the ab ility to provide some banquet hall services. M -2011 -09, ASA -2011 -24, TM -2011 -04 Main Street Cupertino March 27, 2012 Staff Recommendation – Staff recommends that the number of hotel rooms be kept at 250 rooms consistent with the original approval. Additionally, staff is seeking the Planning Commission’s recommendation on the following: • Whether the hotel should be a high -end facility that provides full service and amenities as envisioned and approved in 2009, • Whether Condition N o. 5 requiring a 400 -person banquet facility should be retained or a modification allowing the cond ition to be met with a minimum of 6,5 00 square feet of restaurant and meeting space is acceptable . 5. Office Parking Garage The proposed project includes a split 3 - and 4 -level parking garage with an underground level of parking along Vallco Parkway. This p arking garage is approximately 580 feet in length and will dominate the streetscape along Vallco Parkway at a height reaching a maximum of 50 feet. The 3 -level parking garage portion is proposed to park the tenants of both office buildings, and will not li kely be shared with other uses on site. The 4 -level portion of the parking garage is proposed to be used as shared parking for the hotel and retail uses in the development. The other proposed uses, including the senior housing, athletic club and market rat e apartments will be self -parked by their own underground garages. Staff Recommendation – When the original project was approved, Vallco Parkway was envisioned as a pedestrian -oriented edge of the downtown . After reviewing the current proposal, staff b elieves that the length of the proposed garage severely compromises the elevation and the experience along Vallco Parkway. Additionally, the three -story garage, which is only 42 feet away from the office buildings severely compromises the main entries , wh ich face the proposed garage. The massing along Vallco Parkway can be dramatically reduced and the streetscape can be considerably enhanced by undergrounding the eastern portion of the parking garage (Garage 2) along Vallco Parkway underneath the four -sto ry office 2 building (See Attachment 11 ). This would significantly reduce the visual impact of the garage, create street -level space along Vallco Parkway and provide an appropriate entry court to a future headquarters . The City’s Architectural Advisor has also studied the parking requirement for the office and believes that this can be achievable with only one level of underground parking. Staff strongly recommends the undergrounding and seeks the Planning Commission’s recommendation on the issue. 6. Town Square Retail Pads The town square is proposed to have two retail pad buildings (See Page A2.18 of Attachment 14a ) that flank both the north and south ends of the square. The buildings are proposed at 2,500 square feet and 3,000 square feet. These retail pad buildings are proposed to house uses such as a yogurt shop and the like, similar to what is found in the town square pads at Santana Row. The buildings are designed with an architectural style to match the agrarian theme of the retail buildings in th e development. In the 2009 approved plans, no retail pad buildings were proposed. The town square was planned as open space area large enough to be used by the public and for City -sponsored community events. The intent was to develop open space area th at could be large enough to accommodate a large gathering of people, particularly for community events. The applicant explained that retail space is needed to activate use and draw people into the town square, and therefore, these retail pads were added. Staff Recommendation - While some level of retail uses would enhance use of the town square, staff believes that the proposed retail pads are too large and will defeat the purpose of accommodating M -2011 -09, ASA -2011 -24, TM -2011 -04 Main Street Cupertino March 27, 2012 gathering space for public use and community events. The refore, staff recommends that the Commission consider eliminating the southern retail pad and /or reduc e the total size of the proposed buildings to no more than 1,500 square feet each . Staff also recommends that the buildings be designed in a more open, g azebo style to preserve the open feel of the town square and original intent of facilitating public activities. The Commission’s recommendations on the size, location and design of the retail pads is requested. 7. Alternative Site Plan/Park Location: The p roposed 0.75 acre park is located along Stevens Creek Boulevard in the southwest corner of the development site adjacent to the Metropolitan mixed use development. The intent of the park is to be publicly accessible and neighborhood -serving and was placed adjacent to the Metropolitan mixed use development to provide passive open space park area that would be easily accessible to these residents. Scheme 2A and 2B indicate an alternate location for the park which would basically flip the location of the se nior housing complex and the park, allowing the park to be more internally located to the project site, yet still adjacent to the Metropolitan mixed use development. This would allow for the passive park to be utilized by the surrounding residents of the s enior housing complex and/or the market rate apartment complex, and the two adjacent mixed use developments to the east, Metropolitan and Rosebowl. Additionally, the park would create an expanded open space area just west of the town square that would be v isible to the town square area and provide some safety away from Stevens Creek Boulevard. Staff Recommendation – Staff is recommending a small change to the concept originally proposed by the applicant in Schemes 2A and 2B (See Attachment 1 1 ). The concep t of flipping the senior housing and the park will allow for additional opportunities including the expansion of retail in the currently proposed park area so that there is some continuity provided between retail shops on this site along Stevens Creek Boul evard and the retail buildings to the west at the Metropolitan mixed use development. This also aggregates the retail commercial shops along Stevens Creek Boulevard and creates a parking lot in the rear, which would make the retail more viable. Staff does have some concerns about the reduced setbacks adjacent to the Metropolitan development and recommends the addition of privacy landscaping if this alternative is preferred. The Commission’s recommendation on this alternative is requested. M -2011 -09, ASA -2011 -24, TM -2011 -04 Main Street Cupertino March 27, 2012 Public Outreach As part of the public outreach process, the City sent out citywide courtesy notices to inform all residents and businesses of tonight’s meeting as a combined community meeting and public hearing process. Addition ally, the applicant has indicated that they have held separate outreach meetings with various key members of the community to advise these members of the proposed plans, including the alternate option of including market rate apartment units. Public Comme nt On March 9, 2012 (See Attachment 12 ), t he City received an email from a resident expressing her concerns about the possibility of additional housing that could generate additional students in Cupertino schools. While a student generation analysis was prepared for this project, staff would like to note that the Planning Commission is precluded from making determinations based upon school impacts. Environmental Assessment On March 23, 2012, the Environmental Review Committee (ERC) will review the 2012 A ddendum to the 2009 Final Environmental Impact Report (See Attachment 13) prepared in accordance with the California Environmental Quality Act (CEQA) and make recommendations . The recommendation of the ERC will be provided at the Planning Commission meeti ng. The project includes mitigation measures as outlined in the Mitigation Monitoring Program (MMRP) prepared by David J. Powers and Associates dated March 2012. The applicant will be required to comply with these mitigation measure s for the project. The E RC recommendation and additional mitigations suggested by the ERC will be made available to the Planning Commission at the hearing. M -2011 -09, ASA -2011 -24, TM -2011 -04 Main Street Cupertino March 27, 2012 Prepared by: Aki Honda Snelling, Senior Planner Reviewed by: Approved by: /s/Gary Chao /s/ Aarti Shrivastava Gary Chao Aarti Shrivastava City Planner Community Development Director ATTACHMENTS: Attach ment 1: Draft Resolution for M -2011 -09 Attachment 2 : Draft Resolution for ASA -2011 -24 Attachm ent 3 : Draft Resolution for TM -2011 -04 Attachment 4 : 2009 Approved Master Use Permit plans Attachment 5: 2009 Master Use Permit Conditions of Approval Attachment 6: Letter Justification Letter and List of Modifications Attachment 7 : South Vallco Master Plan Attachment 8: 2009 Approved Tree Disposition Plan Attachment 9: School generation and fiscal analysis of January 2012 Attachment 10: Draft CC&Rs Attachment 11: City Architectural Advisor recommendations (auto court, park, senior housing) Attachmen t 12: Email from resident Attachment 1 3 a : Draft 2012 Addendum to the 2009 Final EIR Attachment 13 b: Appendix A to Addendum Attachment 13 c: Appendix B to Addendum Attachment 13 d: Appendix C to Addendum Attachment 13 e: Appendix D to Addendum Attachment 14 a : Architectural Plan Set Attachment 1 4 b : Architectural Plan Set (hotel) Attachment 14 c: Landscape Plan Set Attachment 15 a: Tentative Map and Civil Drawings Attachment 15 b: Tentative Map and Civil Drawings continued Attachment 15 c: Tentative Map a nd Civil Drawings continued Attachment 16: Architectural Advisor architectural building comments