Exhibit CC 10-21-14 Item No. 13 Letter, Emails, PowerPoint- Hyatt House ly
Cupertino Chamber of Commerce
Your Partner to Silicon Valley October 20,2014
20455 Silverado Avenue
Cupertino,CA 95014
Tel(408)252-7054 Mayor Gilbert Wong and Cupertino City Council
Fax(408)252-0638
www.cupertino-chamber.org 10300 Torre Avenue
Cupertino, CA 95014
Anjali Kausar
Executive Director
Re: Cupertino Chamber of Commerce support for Hyatt House Hotel.
2014 BOARD OF DIRECTORS
BOARD OFFICERS Dear Mayor Gilbert Wong and Cupertino City Councilmembers,
Darcy Paul,President
Paul Law Group,A Professional Corp. I am writing you to express our support for the Hyatt House Hotel Project.
Kevin McClelland,Past President This site was selected as an ideal hotel site a long time ago and remains a
Leeward Financial&Insurance Services great location for a hotel today.
Inc.
Richard Abdalah,President Elect From our General Plan Market Study in February 2014:
Abdalah Law Offices
Art Cohen,VP Membership
BlueLighf Cinemas 5 Exceptionally strong occupancy and growth in room revenue in
Sandy James,VP HR&Staffing Cupertino's existing hotels suggest support for additional hotel rooms.
Lehigh Hanson After declining during the Great Recession,hotel occupancy in Cupertino is
Scott Jeng,VP Finance now higher than before the recession-averaging 80 percent occupancy
HSBC Bank USA,N.A. during 2012.
Mahesh Nihalani,VP Diwali Some operators report current occupancy rates as high as 90 or 100
Jewels in Style percent during weekdays.Most hotel market analysts consider 70 percent
Mike Rohde,VP Special Events occupancy as an overall financially feasible level;thus,Cupertino's rates are
Vallco Shopping Mall relatively high,suggesting strong market demand and room for growth in
Tim Widman,VP LAC supply.
Law Office of Timothy D.Widman
Overall,market indicators,including the expansion of Apple Inc.,signal
Keiichiro Yoshida,VP AABC support for new hotel.development in Cupertino.
BOARD MEMBERS
Claudio Bono This Hotel would bring many benefits to our City. It would allow travelers
Cupertino Inn doing business in Cupertino a greater opportunity to stay in Cupertino and
Janice Chua not our nearby towns. This would in turn provide Cupertino with revenue
Bitter+Sweet from the Transient Occupancy Tax in addition to Sales tax from the
Jessica Epstein, Restaurant,Bar,and Meeting Rooms. This project also provides much
Silicon Valley Association of Realtors
needed Meeting Rooms&Banquet space which Cupertino currently has in
Mike Foulkes short supply.
Apple Inc.
Brandi Garcia We urge you to support this project&help it to move forward.
PG&E
Mike King
Recology South Bay Best regards,
Elizabeth Marchu
Technology Credit Union
Brent McNally
The Cypress Hotel
Keith Warner
Pacific Business Centers Kevin McClelland
Matt Wheeler, Vice President of Advocacy&Past President
LMGW Public Accountants
Cc: Council Members
City Manager
Subject: Hyatt House Hotel CC 10-21-14 Item #13
From: Darrel Lum (drlum @pacbell.net)
To: citycouncil @cupertino.org; cityclerk @cupertino.org; Gwong @cupertino.org; Rsinks @cupertino.org;
BChang @cupertino.org; 0Mahoney @cupertino.org; MSantoro @cupertino.org;
Cc: echan@kcrdevelopment.com;
Date: Tuesday, September 30, 2014 11:38 AM
Please find attached our comments regarding the Hyatt House Hotel project
scheduled to be discussed at October 21 , 2014 City Council meeting.
Concerned Citizens of Cupertino
@ ' U w N
D
SEP 3 0 2014
CUPERTINO CITY CLERK
We started our analysis of this specific project late: Wednesday, August 20th
we were notify about the August 21St Environment Review Committee meeting
regarding this project at which the first details were disclosed. With the Planning
Commission Staff Report dated August 21, 2014 at which meeting there were
additional questions about the Project. We also commented on this project during
the Oral Communications part of the agenda for the September 2nd City Council
meeting.
Hyatt House: see Hotel Analysis/Response to Draft Environmental Impact Report
for 2014 General Plan Amendment submitted by Concerned Citizens
of Cupertino on June 25, 2014, page 62
& Hotel Analysis 2/Addendum to Response to Draft Environmental
Impact Report for 2014 General Plan Amendment submitted by
Concerned Citizens of Cupertino one July 31, 2014, page 24.
Did not realize that the hotel restaurant constitutes the retail element to qualify for
a 60' height.
Hyatt House
There is no question that this Hyatt House Motel will generate transient
hotel tax; it is questionable that it will generate sufficient sales tax, as a
public benefit, to justify a project benefit of an increase of 15 feet from a
maximum height of 45 feet to an exception to 60 feet.
1
Business Plan of Hyatt House hotels
Hyatt House Hyatt House Hyatt House Hyatt House
Emeryville Santa Clara San Jose San Ramon
complimentary yes yes yes
breakfasr
No sales tax
Local Restaurant referral In-house Local
restaurant referral . to restaurant serving restaurants
to nearby restaurants hotel guests
San Francisco "Steps "Many restaurants
Restaurants from dining options" within walking distance"
Complimentary evening bistro w free eats, beer and wine
Local sales tax?
H Bar Restaurant Menu (see attachment with comments submitted c/o City Clerk)
unlikely to attract non-hotel customers
Hyatt House hotels are business service hotels with
2
limited amenities, an extended-stay facilities w kitchens.
Buying groceries: food nontaxable
To representative of Hyatt House: Hyatt House concept for Cupertino @ Planning
Commission meeting: Is Hyatt House concept for Cupertino different than existing
business plan for other locations?
102,200 sf/five-story = 20,440 sf per floor (see A-0.0)
first floor = 21,000 sf (see A-0.0)
fifth floor = 34 rooms -= 20,300 square feet (see A-2.4)
first floor = 12 rooms (.gee A-2.0)
restaurant/bar/lounge = 2„500 sf+ 2,500? sf kitchen = 5,000 sf= approximately
25% of first floor area (see A-2.0).
restaurant = 7 tables
outdoor dining == 4 tables
bar = 9 seats
employees = 3
We' recommend that an independent fiscal impact analysis be completed
to determined whether the public benefit: of the retail component, sales tax,
is sufficient to justify a project benefit of :15 feet to the maximum of 45 feet
for an exception of a 60 feet height.
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0
From: grenna5000 @yahoo.com
Sent: Tuesday, October 21, 2014 9:45 AM
To: City Clerk
Cc: City Council
Subject: Issues With Hyatt House Hotel
Dear City Council:
The Hyatt Hotel Chain.is a very upscape hotel chain and I am sure the Cupertino Hyatt will.be a lovely
addition to the area. I am sure it will be very high class and elegant.
Ricky's Hyatt House (and the Cabana) in Palo Alto on El Camino in the 1960s and 1970s was the premier social.
spot of the Bay Area. I hope that Cupertino's Hyatt House will be such a destination.
The Penneys back parking lot is surrounded on three sides by mature redwood trees that shield the property
from 280. Taking out the trees will make a big hole in the canopy. Cupertino's frontage with Highway 280 has
redwood trees all the way down it from the Los Altos border to the Santa Clara border which.is several miles.
Va.11co Shopping Center has redwood trees all over the shopping center and its boundaries with its neighbors.
It also has redwood trees across its frontage with Highway 280. Taking out these trees will make big holes in
the canopies.
The back parking lot of Macys against 280 has redwoods along its frontage with 280. The owner of that
property might want to take all those redwood trees out and that would.make a big hole in the canopy along
280 also.
Please make sure any redwoods removed from the Penneys back parking lot frontage on
280 are replaced with redwood trees.
Also, could the Hyatt Hotel be four stories instead of five stories? Nothing is that tall in that area. The most is
two stories. Please try to have the height be four stories.
Thank you very much.
Sincerely,
Jennifer Griffin
1
A (�_4n _* (?,
GG Legrt Z Aic-10/21/2014
Hyatt House Hotel
Application nos.DP-2014-04,ASA-2014-06,U-2014-04,EXC-2014-07,TR-2014-28,TR-2014-40
Address: 10380 Perimeter Road (SE quadrant of
Wolfe Road and I-280
10150 N. Wolfe Road (JC Penney site)
Applicant: Edward Chan (Cupertino Property
Development II, L C)
, IlCkXX4r 2 { .f
Application Request
• Demolish an existing parking lot and construct a five-story,
148-room hotel of approximately 102,700 square feet that
includes:
— 24-hour hotel operations(Use Permit required)
— Restaurant with bar (Use Permit required)
— Conference facility(2,834 square feet)
— Fitness room(773 square feet)and pool
— 35,800 square foot underground garage
• Alternative parking standard and eight tandem stalls
• Site and off-site improvements
• Removal and replacement of 115 trees on and off-site
• South Vallco Connectivity Plan
1
:.- 10/21/2014
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General Commercial/ Crtywide allocation 3391i6tel 148 hotel
Plan';: Residential room's : rooms
FS F
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Zorurig`' P�anned� Regional shopping ; '� Hotel with �'���"
Development z restaurant,bar,
Y morns
Height N/A 60'w/retail- 60'
VAT
Parking 223 stalls 187 stalls(Ord ratio};or 156 stalls(incl
}
F
120-stalls(parking study) 8 tandem)
Operi N/A 2,555 s f (2 5%of gross floor 17,000 stool.
f
Space area) `
Setbacks
A
.Front(West) 1 toff setback to West 93;
�; �,��� � lieightzratzo along Wolfe curb line with�a setback to
h
eight ratio
` : Side(South and NE) i/z the South 30'
�.�.
height of bldg(30') Northeast 55'
2
it
10/21/2014
Proposed Site Plan
A t �"� ^rK!l U.atYO UHL.US;whe4,IK4t^,w::u
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�PERgAbER ROAD
l Private street with public access
Frontage Improvements
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3
10/21/2014
Architectural Review
South Elevation—Perimeter Road
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North Elevation-I-280
Architectural Review, cont.
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10/21/2014
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Planning Commission
Recommendation
August 26, 2014
• Recommended approval of the project on a 3-2 vote
• Two commissioners noted the following concerns:
— Restaurant and bar is ancillary to the hotel, and should not
be expected to function similar to a standalone restaurant
— Restaurant and bar space should be increased in order for
the project to be constructed at 60 feet
.• Recommended'a condition of approvaIlhat the
r estaurant'and bar remain open to tfie public
6
10/21/2014
General Plan
60-foot Building Height Allowance
• General Plan allows buildings with a retail
component in South Vallco to be up to 60 feet
• Council has approved past projects at 60 feet
with active commercial ground floor uses
• Project's active frontage area consists of
approx. 81% of the linear building frontage
• Project's interior active space consists of 39%
of the ground floor area (25% for Main
Street's hotel)
Parking
• The City's Parking Ordinance allows the option of
providing the ordinance-prescribed parking ratio
based on standalone uses or demonstrating an
alternative parking standard
• The Cittyy's consultant conducted parking surveys at
three other similar hotels in the City and recommends
an alternative parking standard of 0.81 stalls per room
(120 stalls total)
• The project exceeds this requirement by 36 stalls (or 28
stalls without counting tandem stalls)
• Eight tandem stalls are proposed in the parking
garage for employee use only
7
10/21/2014
Comparison with other Hotels
PAMr
� *' ¢
Aloft{10165 N De Anza Parking Study 0 7 stalls per room
Blvcl)
Cypress Hotel(10050 S q 65 stalls pexroom
De.Ariza Blvd)
Hilton Garden Iriii 1 stall per room
(10741 N Wolfe Road)
Coizrtyard„Marriott 0 95 stalls periroom
(10605 N:`Wolfe Road)
pertinolnn(7 0889 Ordinance ratio 1 stall per loom
N:DeAnza Blvd)
.�;rrN";d„.< �..�az;a:�'�r` ",r�� t...:ms's�. a ^, .�.� ; v 3 �F
Average "arkin ratio 86 alls er room
st__,.. P
Proposed protect; Parking Study 105 stalls per:room
Traffic
• The City's transportation consultant
conducted a Transportation Impact Analysis
(TIA) to study traffic impacts of the project
— The project is expected to generate a total of 1,209
daily trips
— 78 trips occurring during the AM peak hour
— 89 trips occurring during the PM peak hour
• The project will not impact existing level of
service (LOS) analysis during both AM and
PM peak hours
8
10/21/2014
1
Tree Removals
0 150 existing trees onsite— only 9 trees were found
to have a high suitability for preservation
• The majority of trees along Wolfe and I-280 were
found by the City's consulting arborist to be in
poor to irrecoverable condition due to
overcrowding and lack of water
• The project proposes removal of 96 trees onsite
plus 19 offsite trees out of the 150 trees surveyed
• Three healthy trees proposed for removal to
accommodate pathway
Tree Removal Plan
22 of 28 `;{f' /F `''� Condition rating::"' ,
......
Wolfe Rd i P P :, P = Poor
trees in Pe FPF .�c
Ps PP .... F = Fairri� uyKira
za g PFF G ' .Good
reno'vals �� P` p PF F� �° 30 of 56 1-280 trees
fi P""D Dead,
P P �'^,p;P PP ? c,���,, in poor health—22
P. ' r F pPF- ��r° proposed for removal
o P° F FFG
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9
10/21/2014
Tree Replacements
280 FREE1WN
ggai
vp
v RM .sr3,..5,..:. R .
N; tl.fi=ft's �a "n
, proposed,including:
` London P ane(along and iP arkin
g
lot)
'Co ast Redwood(along Wolfe and I-280
.'Perimeter)
'" •' ���s z,� �', Chinese Pistache(in plaza and entry areas)
8�s Water Gum(in bioswale)
5; In-lieu fees required for 57 trees
Public Comments - PC Hearing
August 26, 2014
• Supportive of a hotel project on the site
• Will the project interfere with any plans to improve
freeway intersection?
•
Fire Department access not.desirable
• The restaurant should be open to the public
• The hotels restaurant and bar is not sufficient enough'to
allow 60-foot building height
• Questionable that the hotel.restaurant will generate
sufficient sales tax to justify 60-foot building height
10
10/21/2014
Environmental Assessment
• On August 21, 2014, the ERC
recommended a Mitigated Negative
Declaration (MND) per CEQA
• The Planning Commission also
recommended a MND on a 5-0 vote
Recommendation
• Approve/adopt the following:
— Mitigated Negative Declaration (EA-2014-06)
— Development Permit (DP-2014-04)
— Use Permit (U-2014-04)
— Arcl-dtectural and Site Approval (ASA-2014-06)
— Parking Exception (EXC-2014-07)
— Tree Removal Permit (TR-2014-28)
— Tree Removal Permit (TR-2014-40)
— South Vallco Connectivity Plan
I
11
I __
CC 10-21-14 Item#13
;; Chris Dobbins
Vice President
v Real Estate&Development
7272 E.Indian School Road#101
Scottsdale,AZ 85251
T: 602-820-2289
VIA EMAIL
October 20, 2014
Mr. Edward Chan
KCR Development
19620 Stevens Creek Boulevard, Suite 200
Cupertino, CA 95014
Re: Letter of Interest in Hyatt House located in Cupertino, California
Dear Mr. Chan,
We are excited about the Cupertino Hyatt House project to be located at the northeast corner of
North Wolfe Road and Perimeter Road in Cupertino,California. This is an important business and
tourist center for Hyatt's growth strategy, and we look forward to seeing KCR Development
develop the 148 room Hyatt House in this strategic market. This letter is intended to serve as a
formal recognition of Hyatt high level of support in your project.
We envision this market as a great fit for a new Hyatt House. There is a lack, and thus a need, for
Hyatt upscale,extended-stay hotel product in the Cupertino market. The proximity of the proposed
project location will cater to business, local and leisure travelers. Based on the information we
have seen, you have our commitment and we will support development of a Hyatt House hotel at
this location.
Edward, my apologizes for not being able to attend the meeting in person. We have a prior
commitment on this date with an owner's investment conference. Please have any questions
regarding the Hyatt brands and this project directed to me.
We look forward to working with you on this exciting project.
Regards,
Best Re
I g
Chris Dobbins
Vice President,Real Estate and Development
Hyatt Hotels Corporation
CC 10-21-14 Item No. 13
Kirsten Squarcia
From: Darrel Lum <drlum @pacbell.net>
Sent: Sunday, October 19, 2014 3:17 PM
To: City Council;City Clerk; Gilbert Wong; Rod Sinks; Barry Chang;Orrin Mahoney, Mark
Santoro;City of Cupertino Planning Dept.
Cc: David Brandt,Aarti Shrivastava; Edward Chan
Subject: Hyatt House Hotel
Regarding the application for the Hyatt House hotel, Concerned Citizens of Cupertino (CCC) has
submitted 2 comprehensive documents commenting on
the 2014 General Plan Amendments Environmental Impact Report with several chapters related to
applications, such as the Hyatt House hotel, specifically Hotels, Sales Tax Revenues (decrease of),
Project Benefits versus Public Benefits (unattained public benefits).
We have also recently submitted our specific comments to the City Council on the Hyatt
House application on September 30, 2014, as well as comments to the Planning Commission on
August 26, 2014 and comments to the City Council during Oral Communications on at its first meeting
in September 2014.
Therefore, we will not repeat those comments but will comment on the City Council Staff
Report for the Hyatt House dated for the October 21, 2014:
The discussion, General Plan 60-foot Building Height Allowance, is the most serious flawed part
of the Report:
"The (existing) General Plan allows buildings with a retail component
in the South Vallco area to be constructed up to 60 feet tall." The
proposed 2014 General Plan Amendment Alternative B & C allows
buildings with a retail component to be constructed to an increased height
of more than 100+ feet.
"...based on previous practice, the Council has approved buildings at 60
feet tall..." (and even higher). The result of this past history that "the
intent of this General Plan policy is to promote active ground floor..."
has been a significant failure: 2 ground floor spaces which have never
been activated and continue to be vacant since their construction several
years ago and 2 other units which generate insignifcant sales tax revenue.
In fact, in the Public Comment section of the October 21, 2014 City
Council Staff Report, it is stated that "Based on Council's prior practice,
full service restaurants as part of hotel operations has been deemed to be
appropriate commercial uses warranting the 60-foot building height
allowance regardless of the amount of sales tax anticipated. This not
rational!!!
"The project proposes to activate (?) the building frontage along
Perimeter Road....The project's active frontage area consists of
1
CC 10-21-14 Item No. 13
approximately 81 percent of the linear building frontage. In addition, the
project's interior active (?) space consists of 39 percent of the ground floor
area." Please note that the kitchen, fitness room, reception/break area,
business center, meeting rooms should not be considered public areas,
but for the hotel operations and hotel guests.
"The applicant has provided a letter confirming that the proposed full
service restaurant and bar...." 3 restaurant employees per shift will have
difficulty providing full service to hotel guests and the public. Hyatt House
corporate business plan will prevail on its operations.
"Meeting space rentals also generate sales tax dollars, as well as
associated food and beverage sales." We were not aware that rentals
are taxable.
We have commented that Cupertino has several business-type hotels;
their dining facilities would not be our first choice. The Cypress Hotel with
its Park Place restaurant is at different level; the Park Place restaurant is
located in almost a separate building on a main street, South De Anza
Blvd, with its own signage. Its menu is a higher grade than the Hyatt
House's H Bar menu. Park Place restaurant is one of the top 40 sales
generators in Cupertino. Cited Hilton Garden Inn with its full service
restaurant and bar is not similar to Hyatt House since Hilton Garden Inns
do not provide complementary breakfasts and drinks as provided for
by the Hyatt House business plan.
Concerned Citizens of Cupertino will support a 4-story hotel with a
maximum height of 45 feet as mandated by the existing General Plan; it will
not support an additional 15 feet because of a hotel restaurant intended to support its hotel business
plan.
2