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Exhibit CC 05-01-12 #18 Vacate Finch Avenue cc S [ � 18 Kirsten Squarcia From: Karen B. Guerin Sent: Monday, April 30, 2012 10:45 PM To: Kirsten Squarcia Subject: Fwd: Vacation of Finch Avenue, May 1, 2012, Meeting-Agenda Item#18 Sent from my iPad Begin forwarded message: From: "Keithdd1527 a aol.com" <Keithdd1527 a aol.com> Date: April 30, 2012 7:28:56 PM PDT To: City Council <CityCouncil @cupertino.org> Cc: City Clerk <CityClerk @cupertino.org> Subject: Vacation of Finch Avenue, May 1,2012, Meeting-Agenda Item #18 Regarding: Vacation of Finch Avenue, May 1, 2012, City Council Meeting, Agenda Item#18 Dear City Council Please consider carefully your action to"vacate" Finch Ave. and to trade that public street's acreage back to the adjacent parcels owner's, Sand Hill Properties, so that public land can be better used for their own Main Street Project, but only as a consequence of your approval of their application which must include comparable new public amenities offered in trade to better service our growing community. Please make sure your City Council has negotiated the best trade for our public lands and those agreements must be found to be 100% in our public's greater good and benefit, both now and in questionable times of financial turmoil for our local developers. Why our community must also take into account any future financial down turns which might put in jeopardy Sand Hill's own ability to finish their approved Main Street project and perhaps default, doing so after they assume ownership of the vacated Finch Ave's public right of way and removed the improvements, despite any development agreement you made with them in good faith. Your constituents are concerned that if the vacated Finch Ave. street acreage is reconstituted back into Sand Hill's own parcels and control, with Finch Ave. no longer bisecting Sand Hill's own parcels, and by sad misfortune Sand Hill should loose financial backing and investment in there development plans, would their parcels become distressed commercial property, consisting of newly subdivided parcels with all of Finch Ave's road infrastructure also removed, including; the road bed, median planters, lighting, street trees, gutters, storm drains and signage- then, could a future new owner leverage the now vacated public right of way to there own benefit, perhaps seeking rezoning for 100% housing at some future date with a future city council found to be under pressure to provide ABAG housing due to Apple's future office development in our city? Perhaps... which is not a far fetched possibility and then a fair conclusion, why this issue is a key constituency concern. Ask yourself, would any future city council enforce an expired permit or a failed project's CCR's on a new developer, if the prior Main Street concept had failed as was envisioned after completing the most exhaustive public review and input process imaginable one which included the South ValIco Development Study and many additional hours of public out reach as you encouraged Sand Hill to complete first, for further consideration of their Main Street project application? 1 Surely any new developer would cry foul and ask for financial relief-perhaps a future city council giving the vacated public land with demolished street infrastructure to the next new developer, but given away at our tax payer's expense(?!) Could this public land be used to increase development density on those newly entitled South Vallco parcels, one's re-incorporating the now vacated street acreage into them, perhaps becoming rezoned by a future City Counsel for market rate housing, perhaps pressured by ABAG to off-setting Apple's office allotment in the North Vallco area, giving up on this one last vestige of commercial & retail tax base in the South Vallco area forever? How would the public's interest in a public right of way have been maintained and perhaps leveraged to our greater benefit, "if" our South Vallco commercial & retail district and its supporting tax base for our city's general fund had been lost forever due to a lack of foresight and imagination on the parts of our current City Council? + 'wu - p N i A a 8• *. .i• 6 es e I esi e" d nee f t 4 ¢a�,- , -, �. ,4 x d no p ,- ae 9'' � 9' . 4 '.ky 1: tb°* )• t�df a tl # • • �-oviti tFd ® a r t re/Clii?4 n p• •. b lc ddlao Our resident's can fairly weigh each proposed exchange for our public right of way, like those offered by Sand Hill, if that vacated public land's current market rate value for both the land and the improvements on it, are first researched and made publicly known by an impartial authority- and that includes the intrinsic value that the public easement has for our public's use for accessing local retail I- if this key issue might be lost on both the City Council and the developer. The current property exchange offered by Sand Hill, for our public right of way, also includes enhancements to that same property too, as several parcels of there own land will be developed for trade; one for a public park and one for a public town square infrastructure, both to be maintained and subsidized in perpetuity by either Sand Hill or all future property owner's themselves, but allowing for both public pedestrian &vehicle passage, on a new street grid, located between Stevens Creek Blvd to Vallco Parkway, as can only be confirmed and enforced for the ages with registration of the CCR's. ;Al. ''',4,14$„&;-..ii t '-'0 c a . °'. 4 '. ' ' ,,l-s1"..,,,-'11^_. x. i.,;.' , i wou v es�! Y Yggtwkua �#,op a #•. p = 4 • .q.: , -4 . - :1m , part'as+the o tion of°Finch AYii01-ai a 'f 1 o' ` • , : ', : RV x•j _ u in,FJncta A e's public right;:of way.Isfinot"o` t:= %:,,,i# • ` • i' Ver x"1".6.10,.::: � -fad public land, allenged ►y y future ar ` $ • :ill's Z ' '§:C:# *bam - 1 t �• to be a distre :. lade#ailed prpjectiand.pa thap. Q t • MOB .` r ' r .4 •.rte entitierhents Included, includingI a vaca ed'Y *Mi p t iah w triMb t= _.• .a n. a i`itY-' re& infrastructurr`e. During the review of a different project application a few years ago, our former Cupertino City Attorney Charles Kilian, suggested that a performance bond be placed on the owners of the Marketplace Shopping Center, as the Evershine Property Management had continuing issues with not completing prior phases of redevelopment on there own property- as surrounding neighbors had bitterly complained for years- naively, Evershine countered back to the City Council that it's own financial woes were to blame for the stalling of their construction efforts; this naive arrogance on the part of the applicant was precisely why the past City Council conditionally imposed a performance bond be purchased by Evershine to insure the timely completion of the last phase of redevelopment of the Marketplace shopping center- this completion or performance bond was a first in our city's history as I recall; this bond action promoted sound and timely development as a result. During several community group meetings with Kevin Dare of Sand Hill Properties, constituents discussed bonding Sand Hill as a condition for the vacation of Finch Ave.; bonding was not considered to be an imposition on the project, if support from the community was behind the project, but I would allow Mr. Dare to fully explain his own view on bonding. The vacation of Finch Ave. and bonding could also be linked to the overall "phasing"of the entire project build out; either for building it all at once, or phased in smaller parcels, but I would leave that decision up to the developer who knows his company's financial situation and future tenants needs far better then the general public or even the City council might, with all due respect, but I would like to see the retail 2 component and public areas (public park and the public square) built as soon as possible and not be contingent on any other aspect of the project, like the parking garage, office buildings, senior housing or the hotel and associated amenities. A performance bond can and will provide the same motivations and guidance to Sand Hill and the Main Street project while also protecting the public's greater interest, insuring their vacated public land and street infrastructure is not lost by incompetence or negligence on the part of the applicant and then leveraged to destroy future retail development in the South Vallco area. A performance bond should be supported and proposed by the entire city council as part of the vacation of Finch Ave's public right of way; if Sand Hill can't perform in a timely manner or financially defaults for any reason, our resident's of Cupertino will get back there public right-of-way AND any demolished street infrastructure replaced at actual cost by Sand Hill alone - not by OUR public tax dollars- in example; the acreage, the road bed and its current alignment, median and plantings, street trees, lighting, gutters and signage- everything should be bonded for there full current replacement value. I have some concern that our city officials might attempt to improperly vacate Finch Ave. before the City Council has first resolved all of the newly proposed and confusing modifications to the Main Street Project and doing so while those modifications are under our public's supervision, which can only be done at properly advertised public hearings being held in there proper sequence. Please concur with the city attorney as to the proper sequencing of the vacation of Finch Ave in conjunction with the Main Street application's final approval, so that application's final approval is what the street vacation will be ultimately be legally tied to. I hope you will impose a bond condition, either a performance, completion or surety bond of some sort, perhaps the city attorney could offer suggestions of the bond types to apply and discuss them at the public hearings for the Vacation of Finch Ave, as I know I will be asking for those options to be discussed at the hearings. Please don't kill retail and office development in the South Vallco area due to unwanted interference from Apple; our city spent a$100,000 of our tax payer's money to politely dialog with Apple about both the North and South Vallco's entangled future. Apple would not elaborate openly on mitigating mutual impacts to all stake holders in both the North & South Vallco area and in our community at large, specifically for housing impacts, so lets support Sand Hill today; they have an application which has been before you for many years now. Apple will have their own day: I have no fear of threats of Apple leaving if South Vallco is developed first, I do have many fears if they stay, like Apple killing off local retail and office development in the South Vallco area out of pure corporate zeal that answers to none of your constituents while also selfishly trampling our last hopes of a Main Street project in the South Vallco area. Thank you. Keith Murphy 10159 East Estates Drive Cupertino, CA 95014 CARe &CCC 3 Kirsten Squarcia From: Karen B. Guerin Sent: Monday, April 30, 2012 10:44 PM To: Kirsten Squarcia Subject: Fwd: Vacation of Finch Avenue-Agenda Item#18 May 1, 2012 City Council Mtg Sent from my iPad Begin forwarded message: From: Lisa Warren <la-warren @att.net> Date: April 30, 2012 8:47:15 PM PDT To: Mark Santoro <MSantoro @cupertino.org>, Orrin Mahoney <Omahoney @cupertino.org>, Barry Chang <BChang @cupertino.org>, Rod Sinks <RSinks @cupertino.org>, Gilbert Wong <gwong(&cupertino.org>, City Council <CityCouncil(a7cupertino.org> Cc: Amy Chan <AmyC @cupertino.org>, Carol Korade <CarolK @cupertino.org>, Timm Borden <Timmb @cupertino.org>, Aarti Shrivastava<AartiS @cupertino.org>, Aki Honda <AkiH @cupertino.org> Subject: Vacation of Finch Avenue-Agenda Item #18 May 1, 2012 City Council Mtg Dear All, Mark Santoro,Mayor Orrin Mahoney,Vice Mayor Barry Chang,Council Member Rod Sinks,Council Member Gilbert Wong,Council Member Amy Chan,Interim City Manager Carol Korade,City Attorney Timm Borden,Director of Public Works Aarti Shrivastava,Director of Community Development Aki Honda Snelling,Senior Planner Darrell Lum was kind enough to share his written thoughts with me regarding the vacation of Finch Avenue- related to Sand Hill's"Main Street" project. I would like to echo the suggestions that he has made (see below). In addition : Not knowing if this is an appropriate time to state this... I would like to add that I believe the traffic pattern around the proposed 'town square' should be limited to one way traffic- maintaining two way entrance/exit to/from Stevens Creek Blvd. and Vallco Parkway. "We support the vacation of Finch Avenue if it results in the substantial community benefits of the construction of Mainstreet Cupertino Town Square and its surrounding roadway and Stevens Creek Blvd. and Vallco Parkway entrances and exits, public access and their maintenance by the property owners. 1 However, since the 2009 approved Mainstreet Cupertino project has been on hold and the present modification has requested a 5 year extension, there may be some concern regarding its completion. Therefore, some conditions may be necessary such as: If Mainstreet Cupertino does not proceed, a right of first refusal for the City to re-acquire the Finch Avenue property for the same consideration as it was vacated. If the existing Finch Avenue improvements have been removed partially or completely and the project is unable to be completed, there should be a bond to restore Finch Avenue to its existing state and function as a public right of way or to complete the Town Square and its surrounding roadway and the Stevens Creek Blvd and Vallco Parkway entrances and exits." I want to mention that there has been community discussion on both of these points and this email seems to summarize the thoughts of many. Thank you. Lisa Warren 2 Kirsten Squarcia From: Keithddl527 @aol.com Sent: Monday, April 30, 2012 7:29 PM To: City Council Cc: City Clerk Subject: Vacation of Finch Avenue, May 1, 2012, Meeting-Agenda Item#18 Regarding: Vacation of Finch Avenue, May 1, 2012, City Council Meeting,Agenda Item#18 Dear City Council Please consider carefully your action to"vacate" Finch Ave. and to trade that public street's acreage back to the adjacent parcels owner's, Sand Hill Properties, so that public lard can be better used for their own Main Street Project, but only as a consequence of your approval of their application which must include comparable new public amenities offered in trade to better service our growing community. Please make sure your City Council has negotiated the best trade for our public lands and those agreements must be found to be 100% in our public's greater good and benefit, both now and in questionable times of financial turmoil for our local developers. Why our community must also take into account any future financial down turns which might put in jeopardy Sand Hill's own ability to finish their approved Main Street project and perhaps default, doing so after they assume ownership of the vacated Finch Ave's public right of way and removed the improvements, despite any development agreement you made with them in good faith. Your constituents are concerned that if the vacated Finch Ave. street acreage is reconstituted back into Sand Hill's own parcels and control, with Finch Ave. no longer bisecting Sand H ill's own parcels, and by sad misfortune Sand Hill should loose financial backing and investment in there development plans, would their parcels become distressed commercial property, consisting of newly subdivided parcels with all of Finch Ave's road infrastructure also removed, including; the road bed, median planters, lighting, street trees, gutters, storm drains and signage- then, could a future new owner leverage the now vacated public right of way to there own benefit, perhaps seeking rezoning for 100% housing at some future date with a future city council found to be under pressure to provide ABAG housing due to Apple's future office development in our city? Perhaps... which is not a far fetched possibility and then a fair conclusion, why this issue is a key constituency concern. Ask yourself, would any future city council enforce an expired permit or a failed project's CCR's on a new developer, if the prior Main Street concept had failed as was envisioned after completing the most exhaustive public review and input process imaginable, one which included the South Vallco Development Study and many additional hours of public out reach as you encouraged Sand Hill to complete first, for further consideration of their Main Street project application? Surely any new developer would cry foul and ask for financial relief-perhaps a future city council giving the vacated public land with demolished street infrastructure to the next new developer, but given away at our tax payer's expense(?!) Could this public land be used to increase development density on those newly entitled South Vallco parcels, one's re- incorporating the now vacated street acreage into them, perhaps becoming rezoned by a future City Counsel for market rate housing, perhaps pressured by ABAG to off-setting Apple's office allotment in the North Vallco area, giving up on this one last vestige of commercial & retail tax base in the South Vallco area forever? How would the public's interest in a public right of way have been maintained and perhaps leveraged to our greater benefit, "if" our South Vallco commercial & retail district and its supporting tax base for our city's general fund had been lost forever due to a lack of foresight and imagination on the parts of our current City Council? � t a 410:01h1°$'1" t Strew O ect:i "S 4titY. 6.0, to icceed et we don't need t bps ouy, a lfOri* _ tarty "Ir 6#413� i#!t t� feSt v &s..,.,..`' �' ;'. 'Its. td i� ny a ►tll>Corr l t i`''1iifr strfi to a Irnp otrE�rr eitf,`s�i'1 uilt t on�i hat'spubff lf& , o 1 Our resident's can fairly weigh each proposed exchange for our public right of way, like those offered by Sand Hill, if that vacated public land's current market rate value for both the land and the improvements on it, are first researched and made publicly known by an impartial authority- and that includes the intrinsic value that the public easement has for our public's use for accessing local retail!- if this key issue might be lost on both the City Council and the developer. The current property exchange offered by Sand Hill, for our public right of way, also includes enhancements to that same property too, as several parcels of there own land will be developed for trade; one for a public park and one for a public town square infrastructure, both to be maintained and subsidized in perpetuity by either Sand Hill or all future property owner's themselves, but allowing for both public pedestrian & vehicle passage, on a new street grid, located between Stevens Creek Blvd to Vallco Parkway, as can only be confirmed and enforced for the ages with registration of the CCR's. I rwouli respectfully suggest that you,ourCity tQouncil,jTnpos a Performance Bond on Sand 11 ill as pafkof the vacation of Finch Ave'a* final approval to l 00%'guarantee thatfth public`s greater Interest in Finch Ave's public right of way is not lost In a y utui*court°battle overownershi gh o tj,at vagat d public land,Sa rtgeetby ny fu r ow er's df �, i� j l , za , n ..s 0n Hiil per pettyr, - A n t gip? §0,;ta �0 Ot! ® . r.-: Q'tded to sellGoffthere pare vntkany apprpv'ed entitlementsncncluded, roll°ding.the.vaoate�Flrach Av- i,.1,.* _C A r.1• . .: demolished:and;removed°street:infrastYucture During the review of a different project application a few years ago, our former Cupertino City Attorney Charles Kilian, suggested that a performance bond be placed on the owners of the Marketplace Shopping Center, as the Evershine Property Management had continuing issues with not completing prior phases of redevelopment on there own property- as surrounding neighbors had bitterly complained for years- naively, Evershine countered back to the City Council that it's own financial woes were to blame for the stalling of their construction efforts; this naive arrogance on the part of the applicant was precisely why the past City Council conditionally imposed a performance bond be purchased by Evershine to insure the timely completion of the last phase of redevelopment of the Marketplace shopping center- this completion or performance bond was a first in our city's history as I recall; this bond action promoted sound and timely development as a result. During several community group meetings with Kevin Dare of Sand Hill Properties, constituents discussed bonding Sand Hill as a condition for the vacation of Finch Ave.; bonding was not considered to be an imposition on the project, if support from the community was behind the project, but I would allow Mr. Dare to fully explain his own view on bonding. The vacation of Finch Ave. and bonding could also be linked to the overall"phasing"of the entire project build out; either for building it all at once, or phased in smaller parcels, but I would leave that decision up to the developer who knows his company's financial situation and future tenants needs far better then the general public or even the City council might, with all due respect, but I would like to see the retail component and public areas (public park and the public square) built as soon as possible and not be contingent on any other aspect of the project, like the parking garage, office buildings, senior housing or the hotel and associated amenities. A performance bond can and will provide the same motivations and guidance to Sand Hill and the Main Street project while also protecting the public's greater interest, insuring their vacated public land and street infrastructure is not lost by incompetence or negligence on the part of the applicant and then leveraged to destroy future retail development in the South Vallco area. A performance bond should be supported and proposed by the entire city council as part of the vacation of Finch Ave's public right of way; if Sand Hill can't perform in a timely manner or financially defaults for any reason, our resident's of Cupertino will get back there public right-of-way AND any demolished street infrastructure replaced at actual cost by Sand Hill alone- not by OUR public tax dollars-in example; the acreage, the road bed and its current alignment, median and plantings, street trees, lighting, gutters and signage- everything should be bonded for there full current replacement value. I have some concern that our city officials might attempt to improperly vacate Finch Ave. before the City Council has first resolved all of the newly proposed and confusing modifications to the Main Street Project and doing so while those modifications are under our public's supervision, which can only be done at properly advertised public hearings being held in there proper sequence. Please concur with the city attorney as to the proper sequencing of the vacation of Finch Ave in conjunction with the Main Street application's final approval, so that application's final approval is what the street vacation will be ultimately be legally tied to. 2 I hope you will impose a bond condition, either a performance, completion or surety bond of some sort, perhaps the city attorney could offer suggestions of the bond types to apply and discuss them at the public hearings for the Vacation of Finch Ave, as I know I will be asking for those options to be discussed at the hearings. Please don't kill retail and office development in the South Vallco area due to unwanted interference from Apple; our city spent a $100,000 of our tax payer's money to politely dialog with Apple about both the North and South Vallco's entangled future. Apple would not elaborate openly on mitigating mutual impacts to all stake holders in both the North & South Vallco area and in our community at large, specifically for housing impacts, so lets support Sand Hill today; they have an application which has been before you for many years now. Apple will have their own day: I have no fear of threats of Apple leaving if South Vallco is developed first, I do have many fears if they stay, like Apple killing off local retail and office development in the South Vallco area out of pure corporate zeal that answers to none of your constituents while also selfishly trampling our last hopes of a Main Street project in the South Vallco area. Thank you. Keith Murphy 10159 East Estates Drive Cupertino, CA 95014 CARe &CCC 3 Kirsten Squarcia From: Karen B. Guerin Sent: Monday, April 30, 2012 4:45 PM To: Kirsten Squarcia Subject: FW: Vacation of Finch Avenue/May 1, 2012 City Council Meeting-Agenda Item#18 Attachments: Finch Avenue .pdf From: Darrel Lum [mailto:drlumpacbell.net] Sent: Monday, April 30, 2012 4:36 PM To: Mark Santoro; Orrin Mahoney; Barry Chang; Rod Sinks; Gilbert Wong; City Council Cc: Amy Chan; Carol Korade; Timm Borden; Aarti Shrivastava; Aki Honda Subject: Vacation of Finch Avenue/May 1, 2012 City Council Meeting-Agenda Item #18 Mark Santoro, Mayor Orrin Mahoney, Vice Mayor Barry Chang, Council Member Rod Sinks, Council Member Gilbert Wong, Council Member Amy Chan, Interim City Manager Carol Korade, City Attorney Timm Borden, Director of Public Works Aarti Shrivastava, Director of Community Development Aki Honda Snelling, Senior Planner Please see attachment regarding comments on the vacation of Finch Avenue for the Mainstreet Cupertino project. Thank you for your consideration. Darrel Lum 1 VACATION OF FINCH AVENUE Some other vacation of public right of way: Olive Drive Olive Avenue was vacated between 10230 Imperial Avenue (Cupertino Supply) and 10280 Imperial Avenue (Imperial Automotive: There is a nearby current cell phone tower in the area at 1 021 8/1 022 Imperial Avenue, on roof Sprint Nearby cell phone tower in former Measurex (2011 ) AT&T Cell phone tower in Jollyman Park (2012). During discussion that it was noted that current market leasing rate for a cell phone tower is $10,000 per month. Poppy Avenue (2003) Murano project by Prometheus and Centex. Two single family homes on Poppy Avenue Restricted width of Poppy Avenue. 2004 Agenda Item #23 Poppy Way The costs for acquistion of right of way, removal of the existing curb, gutter and sidewalk and installation of new improvements range from approximately $300,000 to $500,000. It was subsequently determined that the public/city received the right of way on Poppy Way as part of the project approval. As a result the removal of the new existing curb, gutter and sidewalk installed by the Murano project and installation of new improvements was $80,000. Mary Avenue (2010) The City was asked to vacate a portion of the public right-of way on Mary Avenue for the Mary Avenue Senior Housing project at no cost and to prepare the site for construction. Memorandum of Understanding denied on February 2, 2010. Macy's Parking Lot (2011 ) The city was asked to vacate of the City's air rights and subterranean rights to property APN 316-20-088 without any consideration. Postponed on July 5, 2011 . No further action to date. Finch Avenue Silicon Valley Business Journal $66.1 million / 17.4 acre = $3.798851 million per acre Kenneth Rodrigues & Partners 9/5/08 Finch Avenue Vacation: 56,492 sf = 1 .3 acre Estimate 1 .3 acre x $3.798851 million per acre = $4.938505 million for Finch Avenue We support the vacation of Finch Avenue if it results in the substantial community benefits of the construction of Mainstreet Cupertino Town Square and its surrounding roadway and Stevens Creek Blvd. and Vallco Parkway entrances and exits, public access and their maintenance by the property owners. However, since the 2009 approved Mainstreet Cupertino project has been on hold and the present modification has requested a 5 year extension, there may be some concern regarding its completion. Therefore, some conditions may be necessary such as: If Mainstreet Cupertino does not proceed, a right of first refusal for the City to re-acquire the Finch Avenue property for the same consideration as it was vacated. If the existing Finch Avenue improvements have been removed partially or completely and the project is unable to be completed, there should be a bond to restore Finch Avenue to its existing state and function as a public right of way or to complete the Town Square and its surrounding roadway and the Stevens Creek Blvd and Vallco Parkway entrances and exits. Thank you for your consideration of the above. Darrel Lum