CC 06-04-2018 Exhibit Item No. 1 Study Session Vallco Specific Plan Consultant PresentationVallco Special Area Specific Plan | City Council Study Session | June 4th, 20181June 4th, 2018Cupertino, CACity Council Study Session
Vallco Special Area Specific Plan | City Council Study Session | June 4th, 20182Community Participation SummaryViewpoints Represented:• Planning commissioners•Seniors• Faith-based and philanthropic• Planning supporters•Techies•Renters• Parent groups• Neighbors• Block leaders• Pro-C• Pro-D• Students• Business Chamber• Businesses• Middle/undecidedMeeting Participation:•3219recorded public comments•928participants • 152hours of public accessOnline Participation:•7446online page views•4175unique website visits• 545online comments• 440total registered site users
Vallco Special Area Specific Plan | City Council Study Session | June 4th, 20183Numerous Alternatives StudiedPublic Space:• More green, less concrete• Places for kids• Community gardensBuilt Form:• Lower heights adjacent to residential neighborhood.• Taller buildings at carefully selected locations.Over the course of 9 charrette days
Vallco Special Area Specific Plan | City Council Study Session | June 4th, 20184Our Focus for Charrette 2Street and Block NetworkCirculation Network: Required vs. OpenHeights & TransitionsTown Square: Minimum Size, Activation, Potential LocationsStreet Design ParametersWhat Charrette 1 did: Established a foundation for further testing/investigationFocus moving forward: Understanding what to put in Specific Plan and Code to ensure predictable implementationWe are not creating the design
Vallco Special Area Specific Plan | City Council Study Session | June 4th, 20185Establishing Program Parameters
Vallco Special Area Specific Plan | City Council Study Session | June 4th, 20186Program ParametersGeneral program ranges studied at charrette oneUse Program Range StudiesRetail/Ent.411,000-436,00sfOffice1.3-2 millionsfHousing Units2,400Civic45-65,000 sfWhy not study higher retail program? Why not study lower office program?Use Program Range StudiesRetail/Ent.400-600,000sfOffice750,000-1.5 millionsfHousing Units3,200Civic45-65,000 sfGeneral program ranges studied AFTER charrette oneBetter understanding thresholds of viability
Vallco Special Area Specific Plan | City Council Study Session | June 4th, 20187400-600,000 sf Can Achieve Your Goal of a Vibrant Retail EnvironmentMany retail destinations have similar square footage of retail program:• Santana Row, San Jose: 600,000 sf • Bay Street, Emeryville: 400,000 sf • Veranda Center, Concord: 370,000 sf• Corte Madera Town Center: 370,000 sf
Vallco Special Area Specific Plan | City Council Study Session | June 4th, 20188What Does 400-600,000 sf Look Like?How does 400,000 sf and 600,000 sf retail fit on the site?-To fit 600,000 sf, ground floor retail needed on approx. ¾ of all buildings.-To fit 400,000 sf, ground floor retail needed on approx. ½ of all buildings.600,000 sf retail400,000 sf retail
Vallco Special Area Specific Plan | City Council Study Session | June 4th, 20189Office Makes Project Viable. Also Can Be Key to a Vibrant DowntownDaytime spenders to support businessesPossibly institutional tenantsServices you desire in a downtown: Medical, dentist, etc. Make it a downtown versus a mall
Vallco Special Area Specific Plan | City Council Study Session | June 4th, 201810Provide Diverse Housing Choices•Consider creative housing types such as Co-Housing•Percentage affordable (BMR)•Affordability for groups that have not been discussed to date•Taller buildings? If so, how tall and where?
Vallco Special Area Specific Plan | City Council Study Session | June 4th, 201811Innovation Center/Hub•Business incubator/ accelerator space•Educational institutions (all levels and potential satellite campus•Incubator exchange program•Executive level continuing education•Maker space•On-sight dormitory
Vallco Special Area Specific Plan | City Council Study Session | June 4th, 201812Performing Arts Theater•41,000 square feet excluding circulation.•5,300 square foot lobby•600 seat main stage•250 seat second stage•Rehearsal room
Vallco Special Area Specific Plan | City Council Study Session | June 4th, 201813Initial Thoughts on Allowed Heights & Uses
Vallco Special Area Specific Plan | City Council Study Session | June 4th, 201814Recommended Allowed Heights85’ Base Height120’ with Public Benefits35’ Max. 55’ Max. 35’ Max. 55’ Max. 85’ Base Height120’ with Public Benefits
Vallco Special Area Specific Plan | City Council Study Session | June 4th, 201815Locations for Taller Buildings if Needed85’ Base Height120’ with Public Benefits35’ Max. 55’ Max. 35’ Max. 55’ Max. 120’ Base HeightTargeted areas for buildings up to 160’ if needed to accommodate viable program with public benefits desired
Vallco Special Area Specific Plan | City Council Study Session | June 4th, 201816Focused Taller Buildings
Vallco Special Area Specific Plan | City Council Study Session | June 4th, 201817Transition Heights from West•Building heights step down to western edge of site. •No buildings within 50’ of existing western perimeter wall south of Amherst Drive.•No buildings greater than 35’ high within 100’ of existing western perimeter wall south of Amherst Drive.ExistingWallExistingPerimeterRoad85’55’35’Existing Trees100’ 100’
Vallco Special Area Specific Plan | City Council Study Session | June 4th, 201818Scale and Transition: Western EdgeRequire:Articulate massing to vary height along western edge
Vallco Special Area Specific Plan | City Council Study Session | June 4th, 201819Upper-FloorHeightStep backsUpper-story setbacks on floors 4-5Articulation on third floor
Vallco Special Area Specific Plan | City Council Study Session | June 4th, 201820Allowed UsesGeneral Allowed Use Types Key: Required Retail/EntertainmentRequired Residential Uses are open (Retail, residential, office, etc.) on ground floor and upper floors for all other areas
Vallco Special Area Specific Plan | City Council Study Session | June 4th, 201821Regulating the Patterns of Public Spaces
Vallco Special Area Specific Plan | City Council Study Session | June 4th, 201822Many Good Solutions-Shared IntentLocation of publicly accessible open space can vary
Vallco Special Area Specific Plan | City Council Study Session | June 4th, 201823Study of Precedents to Inform RulesLocation of publicly accessible open space can varyHealdsburg, California200’ x 280’ | 1.29 acresOakland, CaliforniaIrregular | 1.95 acresPortland, Oregon230’ x 230’ | 1.21 acresSan Jose, California440’ x 120’ | 1.21 acres
Vallco Special Area Specific Plan | City Council Study Session | June 4th, 201824Recommendations for Open SpaceExisting regulations would require approximately 13 acres of park for this site with 2,400 unitsRecommend requiring 6-7 acres at grade on site, with in lieu fee for remaining amount of park space to improve public spaces nearby
Vallco Special Area Specific Plan | City Council Study Session | June 4th, 201825Signature Pedestrian BridgeAllow pedestrian and bicycle bridge connecting open spacesNot required
Vallco Special Area Specific Plan | City Council Study Session | June 4th, 201826Regulating the Patterns for a Vibrant, Walkable Environment
Vallco Special Area Specific Plan | City Council Study Session | June 4th, 201827Regulating for a Walkable EnvironmentDefine Required Street Locations and Design ElementsNorth Wolfe RoadVallco ParkwayPerimeter Road
Vallco Special Area Specific Plan | City Council Study Session | June 4th, 201828Regulating for a Walkable EnvironmentProvide flexibility in locating secondary streetsLocation of grey streets can vary
Vallco Special Area Specific Plan | City Council Study Session | June 4th, 201829Network Required by Max Block SizeTypically 500-550 square feet for one side of block Maximum block perimeter: 1400 square feetProvides walkability/connectivity500‐550 FT MAX
Vallco Special Area Specific Plan | City Council Study Session | June 4th, 201830Regulations Will Look Similar to This
Economic & Planning Systems, Inc.The Economics of Land Use1 Kaiser Plaza, Suite 1410 Oakland, CA 94612510.841.9190 www.epsys.comVallco Special AreaFinancial Feasibility
Vallco Special Area Specific Plan | City Council Study Session | June 4th, 201832METHODOLOGYPROJECT FEASIBILITY CALCULATIONThe “Pro Forma” Financial Analysis Model Calculates:• Market Value (reflective of lease rates, operating expenses, sale prices)• LessDevelopment Costs• LessRequired Return on Investment• LessLand Cost•Model Output = Estimated “Project Residual”
Vallco Special Area Specific Plan | City Council Study Session | June 4th, 201833LAND USE PROGRAMLow Office/ Low Housing/Land Use High Retail Low RetailRESIDENTIAL Units 3,250 2,640Sq.Ft. 4.06 M 3.30 MCOMMERCIALOffice 750 K 1.50 MRetail/ Entertainment 600 K 400 KHotel 139 K 139 KTOTAL (SQ. FT.) 5.62 M 5.41 MEach program also includes:• 5 acres of public park(s)• 65,000 square feet of civic space• ~85% subterranean parking
Vallco Special Area Specific Plan | City Council Study Session | June 4th, 201834MARKET VALUELand Use Market Value EstimatesRESIDENTIAL (per unit)Apartment (Rental)Market Rate (per unit) $800,000 to $900,000Below Market Rate (per unit) $300,000 to $350,000Condominium (Ownership)$1.03 MM to $1.05 MMCOMMERCIAL (per sq. ft.)Office $1,000 to $1,200 Retail Traditional $800 to $900Entertainment $400 to $500Hotel $700 to $800
Vallco Special Area Specific Plan | City Council Study Session | June 4th, 201835VERTICAL DEVELOPMENT COSTSLand Use Development CostRESIDENTIAL (per unit)Apartment $625,000 to $675,000Condominium $725,000 to $775,000COMMERCIAL (per sq. ft.)Office $850 to $950Retail $750 to $850Hotel $725 to $775
Vallco Special Area Specific Plan | City Council Study Session | June 4th, 201836NET VERTICAL DEVELOPMENT VALUE (PER SQ.FT.)Contribution toLand Use Land Value PSFRESIDENTIAL (PER SQ.FT.)Apartment Market Rate $150 to $200Below Market Rate -$250 to -$300Condominium$200 to $250COMMERCIAL (PER SQ.FT.)Office Traditional $300 to $350Civic -$850 to -$900Retail Traditional $50 to $100Entertainment -$300 to -$400Hotel $0 to $50Contributions to Land Value before:• Land Cost• Horizontal Development• Roads• Water / Sewer / Utilities• Off-site improvements• Landscape
Vallco Special Area Specific Plan | City Council Study Session | June 4th, 201837HORIZONTAL DEVELOPMENT COSTSHorizontal Cost EstimateSite Work and LandscapeBackbone Infrastructure $200 MM to $250 MM +Off-Site Improvements