CC 04-07-20 #9 De Anza Hotel_PresentationsApril 7, 2020 De Anza Hotel10931 N De Anza Blvd.
Subject●Item 9:De Anza Hotel project hearing items:●9A.Petition for Reconsideration of Council's 3/3/20approval of the De Anza Hotel; and●9B.First reading of a Development Agreement for anew 155 room 7-story hotel (24-hour operations) withunderground parking, event meeting rooms, aground floor restaurant with separate bar and arooftop lounge with a separate bar.
City Council Hearing March 3, 2020●Project applications (GPA-2018-01, DP-2018-01, ASA-2018-02, U-2018-02, and EA-2018-03) were approved by a 4-1 vote (Willey voting no). ●Community Development Director to renegotiate development agreement (DA) to increase amount of the Community Amenity payment offered and clarify that fees paid for shuttle transportation (Scharf and Paul voting no).
9A: Reconsideration of De Anza Hotel The petition for reconsideration submitted by Michael R. Lozeau, Lozeau Drury LLP on behalf of petitioner Laborers International Union of North America, Local Union No. 270 (“LIUNA”)
9A: Reconsideration of De Anza Hotel City of Cupertino Municipal Code (“CMC”),Section 2.08.096, contains procedures forinterested persons to petition the CityCouncil to reconsider its adjudicatorydecisions.
9A: Reconsideration of De Anza Hotel ●An offer of new relevant evidence which could not have been produced at any earlier city hearing.●An offer of relevant evidence which was improperly excluded at any prior city hearing.●Proof of facts which demonstrate that the City Council proceeded without, or in excess of its, jurisdiction.●Proof of facts which demonstrate that the City Council failed to provide a fair hearing.
9A: Reconsideration of De Anza Hotel ●Proof of facts which demonstrate that the City Council abused its discretion by:●Not preceding in a manner required by law; and/or●Rendering a decision which was not supported by findings of fact; and/or●Rendering a decision in which the findings of fact were not supported by the evidence.
9A: Reconsideration of De Anza Hotel Petitioner Comment City Response“Fair Argument” that project may have unmitigated adverse environmental impacts. City required to prepare an ‘EIR’ City Council proceeded in a manner required by law and based its decision on substantial evidence in the IS/MND. Petitioner has notmade a ‘fair argument’ for reasons stated in the Response to Comments Memos
9A: Reconsideration of De Anza Hotel Petitioner Comment City ResponsePetitioner’s noise expert concluded that MND improperly analyzed construction noise levels and that construction noise levels during the five stages of Project construction would create a significant noise impact.City Council conducted the hearing in a manner required by law, and rendered a decision based on the established regulations in the Cupertino Municipal Code, and the findings based on substantial evidence in the record.
9B Development Agreement DA-2018-01 – Community Benefits●Community Amenity Funding: The Developer agrees to pay the City $500,000. ●Shuttle Service: Access to a shuttle service to travel between hotel and airports and major employment centers.●Meeting Rooms: Allow City and Cupertino public schools use of hotel’s meeting rooms for official business 12 days per year.●Rooftop Amenity: Enclosed publicly accessible rooftop amenity including but not limited to outdoor deck seating, bar, or restaurant.●Minimum Hotel Standard: Upscale boutique hotel.
9B Development Agreement DA-2018-01 – City Council DirectionCommunity Development Director directed to renegotiate DA to:●Increase the amount of the Community Amenity payment from $500,000 to $1 million; and ●Clarify that fees paid for shuttle transportation to and from the De Anza Hotel and regional airports and other significant destinations for City residents and other non-hotel guests will not exceed 50% of the fees paid by hotel guests.
9B Development Agreement DA-2018-01 ●Developer declined to increase the Community Amenity payment.●DA amended to charge non-hotel guests shuttle fee that does not exceed 50% of any for hotel guests for the shuttle service. ●If hotel guests not charged, non-hotel guests for the shuttle service not charged.
ConclusionThat the City Council conduct a public hearing, and:1. Adopt Resolution No. 20-034 denying the petition, which does not meet the requirements of Cupertino Municipal Code (CMC) Section 2.08.096.2. Introduce Ordinance No. 20-2195 “An Ordinance of the City Council of the City of Cupertino Approving a Development Agreement for the Development of a New 7-Story, 155 Room Hotel With Associated Site and Landscaping Improvements Located at 10931 N. De Anza Blvd. (APN #326-10-061)”
Next Step●City Council April 21, 2020 for second reading of the Ordinance.