Exhibit CC 11-17-15 Oral Communications Letter from Sand Hill to CUSD Cc, Ir /f') ILi
SAND HILL PROPERTY COMPANY
EXHIBIT
June 9,2015
Wendy Gudalewicz, Superintendent
Chris Jew,Chief Business Officer
Cupertino Union School District
1309 S.Mary Avenue
-_Suites 150_&250— - . - - . - -- - - -_ _-. _ - _ _ _ - -. - - - -
Sunnyvale, CA 94087
RE: Establish Quality Education Facilities for Existing and Future Students in the Vallco
Shopping District Specific Plan Area(the"Vallco Specific Plan Area"or"Plan Area")
Dear Ms. Gudalewicz and Mr. Jew,
Sand Hill Property Company, on behalf of Vallco Property Owner,LLC ("Property Owner"),
owner of the Vallco Shopping Center, submits this Letter of Intent("LOP')to the Cupertino
Union School District("CUSD"or the"District") for the purposes of establishing quality
education facilities and programs for future students in the Vallco Specific Plan Area generated
by the Property Owner's anticipated redevelopment project, as well as to enhance the quality of
education for existing students in the District, above and beyond the impact generated by the
proposed project.While Property Owner has not yet submitted a formal application to the City,
the parties wish to demonstrate a unified front to the City and greater Cupertino community and
as such enter into this LOI prior to this submittal.
Even though state law limits fees a school district can charge to mitigate school impacts,
Property Owner wants not only to help maintain—but enhance—the District's educational
success.
In summary,should Property Owner's proposed project receives City approval,Property
Owner will more than fully mitigate impacts on school facilities created by students whose
parents or guardians are projected to rent new homes or occupy new offices built in
accordance with the contents of this letter of intent,by:
2882 SAND HILL ROAD,SUITE 241 I MENLO PARK,CA 94025 I (650)344-1500
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(i)delivery of a newly constructed elementary school(K-5) at the former Nan Allen("Nan
Allen") school site,which would accommodate 700 new students,
(ii) reconfiguration(i.e. removal of"relocatable"classrooms and construction of new
permanent classrooms) of the existing Collins Elementary School("Collins"),
(ill) improvements to and expanded utilization of the existing joint-use athletic field,where
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(i)-(iii) shall support approximately 1,400 students (current enrollment at Collins is
approximately 750 students), and
(iv) the creation of a$1,000,000 quasi endowment fund for the express purpose of
supporting the long-term fundraising efforts for the Yosemite Science Program for CUSD's
8`11 Grade Students.
Property Owner desires to provide a significant"net positive"impact to the CUSD, and,in that
—regard,-provide-greater-benefits-to-CUSD-than the combined amount of-(i)-the-statutorily-
mandated general school facility fees pursuant to Senate Bill 50 and(ii)CUSD's own estimate of
projected facility costs attributable to the proposed project.
Accordingly,in order to comprehensively ensure quality education facilities and programs for
expected future as well as existing students,Property Owner proposes the following specific
terms:
1. Provided that Property Owner's project(to be submitted by mid-September)is approved by
the City with the retail,residential, office program proposed and construction commences,
Property Owner will:
A. Deliver a newly constructed K-5 elementary school at the Nan Allen site to house 700
new students,including the ability to accommodate at least 50 students to be shifted from
Collins to achieve the District's desired 700-student.per elementary school ceiling.
Property Owner will also deliver a reconfiguration of the existing Collins whereby all
existing temporary classrooms(i.e. `portables')will be removed and replaced with new
permanent classroom buildings.Additionally Property Owner will make improvements to
and expand the current utilization of the existing joint-use athletic field(which is
currently only 50%operable for Collins' recreational use)between the Collins and Nan
Allen sites. Property Owner will deliver the foregoing(i)per the plan and specifications
outlined in Exhibit A,which Property Owner estimates it can build for up to $17.5
million including soft and hard costs.Property Owner will retain an architect accredited
for such a project by the Division of the State Architect and all other design professionals
as necessary.
B. Endow the District with a$1.0 million one-time payment expressly intended to
supplement the District's fundraising efforts to ensure the long-term viability of the in-
2882 SAND HILL ROAD,SUITE 241 I MENLO PARK,CA 94025 I (650)344 1500
place"Yosemite Science Program",traditionally offered to the District's 8th grade
students.
C. Pay its full statutory requirement"Level 1 Fee"obligation to CUSD in the approximate
amount of$2,069,600.
2. Based on the terms proposed by Property Owners above, CUSD will confirm that the above
education facilities construction package meets and exceeds full mitigation for any school
impacts on the District created by the Property Owner's anticipated project and accept the
package in lieu of any other Property Owner fee, subsidy,or exaction other than outlined
herein. CUSD agrees to enter into a formal agreement with Property Owner.
This financial commitment, totaling over$20 million at no cost to the District for the
construction and reconfiguration of the 2 elementary schools, is an unprecedented offer that
no other Property Owner has ever made in Cupertino.
We appreciate collaborating closely with CUSD in recent months to create a blueprint for quality
education facilities and programs to serve existing as well as expected new students coming from
the Vallco Specific Plan Area and maintain the District's ongoing educational success. We are
pleased to submit this LOI to fully mitigate Property Owner's expected school impacts and
improve the quality of education for existing students, and are excited to help construct the first
new elementary school in Cupertino in decades. It will be best of breed, a school of which all of
Cupertino will be proud. We all want to assure the community that a new development can in
fact be responsible and beneficial.
REMAINER OF PAGE INTENTIONALLY LEFT BLANK
2882 SAND HILL ROAD,SUITE 241 I MENLO PARK,CA 94025 I (650)344-1500
Of course,the terms are merely an expression of the parties'mutual interest in pursuing the
stated goals and objectives;none of the provisions will be binding upon the parties until such
time as we enter into binding agreements executed by all required signatories. If these terms are
acceptable to CUSD,we ask that the Board formally approve them and sign below on the
District's behalf.
Sincerely,
Vallco Proer . •wner LLC Acknowledged&Agreed:• June `%o,2015
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4.41111 Cupertino Union School District
PeterPPau
Phy ''V ogel / I
Pres of the Board of Education
Ir•y Gudalewicz
Superintendent
2882 SAND HILL ROAD,SUITE 241 I MENLO PARK,CA 94025 I (650)344-1500