13-182 Apple Inc., Proposed Development Agreement Parkland ContributionNovember 12, 2013
David Brandt, City Manager
Cupertino City Hall
10300 Torre Avenue
Cupertino, CA 95014 -3202
Re: Proposed Development Agreement Parkland Contribution
Dear David:
This letter is to memorialize our agreement regarding the interpretation of the "Parkland
Contribution" section of the proposed Development Agreement between the City of
Cupertino.( "City ") and Apple Inc. Under the City's General Plan, a 1.1 -acre portion of
the site Apple has selected for its new corporate campus (which currently contains a
parking lot) has a land use designation for use as Parks and Open Space and is zoned
for future use as Park and Recreation (PR). Because Apple's use of the site as a,
corporate campus wound reduce the acreage of land designated for future parks in the
City available for public use, Apple has- agreed to pay the City an agreed upon sum to
purchase, improve, and maintain a 1.1 -acre public park elsewhere within City limits (the
"Alternative Park Parcel"), in exchange for an amendment to the General Plan to
accommodate Apple's new campus and as consideration for the Development
Agreement. Specifically, in connection with Mitigation Measure PLAN -1 in the EIR,
Apple agrees to pay the City $8,270,994 (the: "Aggregate Payment "), comprised of
$5,511,200 to purchase a suitable Alternative Park Parcel, $900,000 to improve it, and
$1,859,794 to provide maintenance and a capital replacements endowment for twenty
(20) years.
Apple and the City agree that the $5,511,200 amount for an Alternative Park Parcel
likely exceeds the fair market value for a 1.1 acre parcel. However, under the
Development Agreement, Apple could elect to purchase, designate, and dedicate to the
City an Alternative Park Parcel instead of paying the City $5,511,200 to acquire such
property. Any Alternative Park Parcel selected by Apple must be appropriate and
suitable for public park use, publicly accessible, and otherwise in a condition and
location acceptable to the City.
Apple
1 Infinite Loop
Cupertino, CA 95014
T 408 996 -1010
F 408 996 -0275
www.apple.com
David Brandt, City Manager
November 12, 2013
Page 2
Apple and the City have agreed that if Apple acquires, designates, and dedicates a
suitable Alternative Park Parcel to the City before Apple makes the Aggregate Payment,
the Aggregate Payment would be reduced by $5,511,200. The parties have further
agreed that if Apple acquires and conveys a suitable Alternative Park Parcel to the City
after Apple has made the Aggregate Payment, but before the City has itself entered into
an agreement to purchase an Alternative Park Parcel, then the City will promptly refund
to Apple $5,511,200 (less out -of- pocket amounts, if any, that the City may have already
committed or expended in connection with site selection and acquisition activities, such
as due diligence review, title review, appraisals, environmental investigations, and
similar expenditures). Finally, to avoid the expenditure of unnecessary or duplicative
funds in connection with the acquisition of thE� Alternative Park Parcel, the parties have
agreed that if either party is in negotiations or is otherwise preparing to purchase an
Alternative Park Parcel, that party shall promptly notify the other party of that fact.
If these terms are acceptable, please sign in the signature block below and return a
copy of this letter to me.
Very Truly Yournns,
C', 4
J mes C. Fowler
ssistant Secretary, Apple Inc.
ACKNOWLEDGED AND AGREED:
CITY OF;GUPERTINO
By: V,
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Print Name: David Brandt
Title: City Manager
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