CC 02-03-04 Study SessionOF
CU?er t no
AGENDA
CUPERTINO CITY COUNCIL ~ REGULAR ADJOURNED MEETING
10300 Torre Avenue, City Hall, Conference Room C
Tuesday, February 3, 2004
3:00 p.m.
PLEDGE OF ALLEGIANCE
ROLL CALL
WORK SESSION
1. Economic Development
ADJOURNMENT
Because of the President's Day holiday, the next City Council meeting will be held on Tuesday,
February 17, 2004, at 6:45 p.m.
In compliance with the Americans with Disabilities Act (ADA), the City of Cupertino will make
reas. onable efforts to accommodate persons with qualified disabilities. If you require special
assistance, please contact the city clerk's office at 408-777-3223 at least 48 hours in advance of
the meeting.
The City of Cupertino
How does Cupertino, as a city, position its retail
~nventory to be competitive relative to other shopping
centers and project an aesthetic that represents the
community for the next decade?
Shopping in the 50's
Shopping in the 60's
Shopping in the 70's
Shopping in the 80's
Shopping in the 90's
The Demographics-2 Mile Ring
Population: 117,751
Est. Average Household Income:
$134,628.00
Bachelor's Degree: 30.10%
Master's Degree: 18.61'%
Renter Occupied: 40.95%
General Retail Trends
Currently: 3.8% retail vacancy factor (est.)
Strongest demand, by far, are restaurants
Further retail consolidation, attrition and repositioning such as Kids
R Us, K-Mart, Grocery stores, stationary & electronics
Soft goods retailing moving further away from department stores
e.g. Kohls, Target, Costo, T.J. Maxx
Better prices for consumers & more competitive environment for
retailers
Independent retailers, must compete on service and .knowledge vs.
price alone
Big Boxes: Customers vote with their dollars. Most of the time their
dollars vote differently then their stated opinions
More services going into centers
Cupertino Retail District(s)
What Cupertino is not.
Tourist destination
Historical, scenic or amusement attraction
Regional transportation hub or gateway
Central Business District
Convention city
Vertically urban
What Cupertino. is.
High income community
Significant high tech history and core
location for the tech industry
An example of the American Melting Pot
with a significant Asian community
Existing Inventory
Strip Centers
Neighborhood Centers
Community Centers
Regional Center
Future Inventory
Strip Centers
Neighborhood Centers
Community Centers
Regional Centers
Mixed-Use Projects
Rehab Before
Rehab After
Mixed-Use
Caution
Uses in conflict
- Parking
- Odor intrusion
- Business hours
- Access
- Security
- Aesthetic
-Limited critical mass
Curb-Side Retail
Short comings include:
-Two store fronts
- Appropriate Signage
- Parking
- Access/Entry
-Appearance resembling Medical/Dental & not
retail
- Eliminates most landscaping
First and Last Word in Recruiting
Retail Tenants
$$$$$$$$
Sales
How Effective are Recruitment
Strategies
Cities in and out of California now
compete against each other for new
businesses
Losing cities many times get the impact
but not the sales tax
City persona & reputations are important
Important information and communication
source
Streamline & assemble critical sources
How much influence does a city
have over market forces?
Precious little
Examples & Comments:
Trader Joes
Prohibitive Zoning
Zanottos, Sunnyvale Town Centre & more to
come. In other words, be weary of the
square peg in the round hole
How to discourage retailers
Refuse to listen to and consider why a
retailer needs certain "success features"
Retailers can go to Cupertino, or if easier,
Eugene Oregon, Provo Utah, Fresno
California etc. and still generate, new store.
sales
Recommendations
Solicit Market Input!
- Be weary of consultants who haven't executed any of
their ideas
Place energy into design standards that are
enduring and not trendy
Focus on quality
Develop entry gateways eg. Arches/Portals
Test new ideas with what has been successful
elsewhere. The Donner Party took a untested
shortcut.
Conclusion
Car Counts: 25,000 cars/day
Population Mass
Who is closest to the market; brokers
Can't legislate the market viz. Zanotto's,
Pavilion, Piscern, Old Mill, El Paseo One,
Sunnyvale Town Center
Review of retailing through past 50 years & their
common features...
· ' Randol Mackley
Retail Real Estate Group, Inc.
The Council wants to hear your insights on the following issues:
1.
Oenerel r~tail merket trends, perticularly for metaurents and ¢ommerciel
entertainment uses such as theaters and book stores,
2. Cupertino's position in the market (market niche) and the immediate competition
relative to the above uses,
3. Update on the preliminary plans for Vallco Fashion Park,
4. What is the status of big box uses?
5. What we should be doing as a city to attract high quality viable retail
establishments,
6. How effective are recruitment strategies?
7. How much influence does the city have over market forces?
8. What should we avoid doing that might discourage retail uses from locating here?
9. How important is it to permit mixed-uses to encourage the redevelopment of
older under performing strip centers?
10. The Council will have other questions to ask at the study session.