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CC 01-30-06 CUPERJINO APPROVED MINUTES CUPERTINO CITY COUNCIL Regular Adjourned Meeting and Special Meeting. Monday, January 30, 2006 ROLL CALL Present: Mayor Richard Lowenthal, Vice-Mayor Kris Wang, and Council members Patrick Kwok, Orrin Mahoney, and Dolly Sandoval. Absent: none. PLEDGE OF ALLEGIANCE At 5:05 p.m. Mayor Richard Lowenthal called the meeting to order in the Council Chamber, 10350 Torre Avenue, Cupertino, California, and led the Pledge of Allegiance. WRITTEN COMMUNICATIONS The Deputy City Clerk noted the following written communications: · An email to the City Council dated January 28 from Stephanie Schaaf, Vice-Chair of the Sustainable Land Use Committee of the Sierra Club, Lorna Prieta Chapter, supporting the Vallco condominium project, item number 4. · Petition and letter to the City Council dated January 30, from Concerned Cupertino Residents supporting the Vallco condominium project, item number 4. · Email dated January 30 from Brooke Ezzat regarding item number 4. ORAL COMMUNICATIONS - None NEW BUSINESS 1. Review the Valley Transportation Plan 2030, and consider v.. cent sales tax scenarios. (No documentation in packet). Government Affairs Manager Jim Lawson and Chief Construction Officer Jack Collins, both with the Valley Transportation Authority (VTA), made a PowerPoint presentation regarding the potential quarter cent sales tax. They highlighted the history, the January 30,2006 Cupertino City Council Page 2 expenditure plan development, current activities, and new projects. Kim Conig with the VT A Financial Services Department was also there to answer any questions. Mr. Collins noted that the VTA Board of Directors is deferring making any decision on this item until its March 2 meeting. Council concurred to add this item to its February 27 agenda. Council also directed staff to do an analysis of what VTA projects would benefit Cupertino, and how the tax increase would impact Cupertino residents. STUDY SESSION 2. Discussion about the General Plan policy on Economic Development. Community Development Director Steve Piasecki said that Cupertino needs active, viable, successful retail to serve the residents, and that the City should use land use tools where appropriate, particularly residential, to encourage retail. He noted that 50% of Cupertino's revenue comes from business-to-business sales tax. Mayor Lowenthal suggested that the Economic Development team make a proposal on a sales tax target, and that the Legislative Committee bring a resolution to Council regarding business-to-business sales tax. 3. Discussion about the city's Fiscal Strategic Plan. Administrative Services Director Carol Atwood reviewed the Fiscal Strategies Plan Issues Paper, which highlighted: 1) Defining the problem - the current funding gap; 2) Promoting organizational efficiency; 3) Decreasing expenses and areas of risk exposure; 4) Stabilizing revenue sources. She asked Council to appoint an Economic Development subcommittee task force to work with staff on a long-term Fiscal Strategic Plan to bring back during the budget review. She noted that the existing Economic Development Committee would focus on enhancing the current fiscal environment, while the subcommittee would look at ways to operate a long-term viable corporation. Council concurred to appoint Kris Wang and Orrin Mahoney to the subcommittee. Council also directed staff to bring the Fiscal Strategic Plan to Council at a regular meeting, targeting the first meeting in April, and to add a standing agenda item regarding the subcommittee's progress. RECESS Council recessed from 6:40 to 7:30 p.m. January 30,2006 Cupertino City Council Page 3 PUBLIC HEARING (SPECIAL MEETING) -7:30 p.m. 4. Consider Application Nos. U-2005-l6, ASA-2005-ll, Z-2005-05, TR-2005-04, DA- 2005-01 (EA-2005-l0), Mike Rohde, (Vallco Fashion Park condominium development), 10123 N. Wolfe Road, APN 316-20-064 and 316-20-057: A. Mitigated Negative Declaration B. Use Permit and Architectural and Site Approval to construct a 137-unit, two and three-story condominium development C. Re-Zoning of a 5. 1 9-acre parcel from Planned Development (Regional Shopping) to Planned Development (Regional Shopping/Residential) First reading of Ordinance No. 1975: "An Ordinance of the City Council of the City of Cupertino Rezoning of a 5.l9-Acre Parcel From Planned Development (Regional Shopping) to Planned Development (Regional Shopping/Residential) at 10123 N. Wolfe Road." D. Tree Removal for an attached condominium development E. Modification to a Development Agreement (l-DA-90) to encompass the development proposed in U-2005-l6, ASA-2005-ll, Z-2005-05 and TR-2005-04 First reading of Ordinance No. 1976: "An Ordinance of the City Council of the City of Cupertino Modifying a Development Agreement (l-DA-90) to Encompass the Development Proposed in U-2005-l6, ASA-2005-ll, Z-2005-05 and TR-2005- 04 for a 137 Unit, Two- and Three- Story Residential Condominium Development at 10123 N. Wolfe Road." Steve Piasecki reviewed the staff report via a PowerPoint presentation. Applicant Mike Rohde said that the Vallco owners are working to reinvent the shopping center as other centers have done. Some of these approaches include: Have people live on campus; bring residents closer the shopping; create walkability; and create a "downtown." He said that the revitalized shopping center would bring in sales revenue to the City, as well as provide low-income housing and job growth. In response to questions from Council he said the owners have no intention of making an opening on the wall into the neighborhood; the owners do intend to keep Farmer's Market but relocate it to the hotel site, the Penny's north parking lot, or the Sears south parking lot; and that the daycare center will be moved out of the mall and will be available to anyone, including residents. January 30,2006 Cupertino City Council Page 4 Architect Kirk Ellis made a PowerPoint presentation on the design of the condominium development. He discussed the food court; furniture; exterior design concepts; bringing storefronts out toward Vallco Parkway; Vallco becoming a downtown nighttime activity; subterranean parking; setbacks; day care center; open space; and maintaining existing trees. Mayor Lowenthal opened the public hearing at 8:55 p.m. The following individuals spoke in favor of the condominium development: Richard Tygerson Hamid Abtahi Richard Ho, property manager Ed Hirshfield Patrick Keating, storeowner in Vallco James Chen, president of Alexanders Steakhouse Margaret Limberatos (through an interpreter) Calvin Kuo Evan Tang Barry Chang Jack Yang Christopher Schumb Beverly Bryant, Homebuilders Association. Housing of Northem CA Their comments included: · Unfair to characterize the developers as greedy when there are easier projects elsewhere · Vallco needs to come back because Cupertino needs a place for professionals to live · Mostly professionals, rather than children, will live there · New business is welcome, and the movie theater is a great idea · The development will protect the neighborhood against other development that might really hurt Cupertino · Parking won't be an issue · There is no indication that the owners are financially insolvent · The owners are willing to work with the tenants · Vallco has always been a good neighbor, and is separated from the neighborhood by trees and sound walls · Cupertino needs Vallco and the existing stores also need Vallco for their success · The condominiums are a great opportunity to make Vallco successful, and would be a good place to buy a first home · In the peak time of Vall co, not many people used the parking lot because it was too far away · Trust that Council will make the right decision · The Vallco area is not geared toward families, but toward those who want to live in a commercial and social center January 30, 2006 Cupertino City Council Page 5 . The owners don't want to cut through the wall, but make a condition of approval to forever forbid and reserve the condo owner rights to have any sort of right or way through the wall . The Vallco development is a good example of retail and mixed use and the current owners want to make Vallco a beautiful, innovative center The following individuals spoke against the condominium development: Helam Luk Dale Jenkins Rudy Griffin Sherry Ren Sean Huang Fran Jenkins Manisha Puranik Lucetta Tuttle Julie Bay Edith Pedersen Lloyd Martin Stuart Chessen Howard Trudeau Sue Trudeau Nancy Tressel Lynn Salazar Ruby Elbogen Janice Ishii Linda Cheung Shilpa Joshi Raj Rayasekharan Connie Zhang Sridhav Boinapally Martin Y u Marcia Alicea Al Di Francesco Rajeev Joshi Jennifer Griffin Cathy Helgersen Sharon Hampe Rahul Vadodkar Nelson D'Souza Narayan Laksham Bei Shen Sywe Shuyi Chen Suchen Chang Vanessa Schindler Shawn Yang Kent Kernahan Leslie Shich Michael Pyle Vipin Samar Barbara Rogers Vimal Solanki Anand Cheriyathmadam Steven Scharf Vinita Joshi Alok Gupta Henry Schogar David Wang Shankar Iyer Vidula Aiyer Matt Kernahan Their comments included: · Keep the area as a parking lot and Vallco as a commercial site · Concern about privacy issues and that the sound wall would come down · The Rosebowl project should be completed first · See how successful Vallco is first, and analyze the growth impact · Concern over school crowding, traffic congestion, stress on sewer, noise and pollution from highway and parking garage · The developers need to show a financial and business plan first · There are too many condo projects in that area, and people don't want Vallco to become a downtown Silicon Valley · The project shows lack of planning and is a bad location for condos January 30, 2006 Cupertino City Council Page 6 . Suggested using the space for offices instead since they wouldn't impact the schools . The neighborhood would be negatively impacted Linda (no last name given) said that she was not in favor or against the development but wanted low-income housing in Cupertino. Vallco owner Emily Chen said that she heard many things from the speakers, and asked for understanding from Council and the public. She reviewed the history of Vallco and the owners it had in the past. She noted that she has made a huge investment into Vallco, and definitely wants it to succeed. She asked Council and the community to give their trust and support. Mayor Lowenthal closed the public hearing. SandovallKwok moved and seconded to continue this item to Tuesday, January 31 $I at 4:00 p.m. The motion carried with Wang and Mahoney voting no. ADJOURNMENT At 11:55 p.m., the meeting was adjourned to Tuesday, January 31, for a Council goal-setting session. The meeting will begin at 1 :00 p.m. in the Council Chambers at the Community Hall, 10350 Torre Avenue, Cupertino. ~~'cAt Grace Schmidt, Deputy City Clerk For more information: Staff reports, backup materials, and items distributed at the meeting are available for review at the City Clerk's Office, 777-3223, and also on the Internet at www.cupertino.org.Click on Agendas & Minutes/ City Council/ Packets. Most Council meetings are shown live on Cable Channel 26, and are available at your convenience from our web site. Visit www.cupertino.org and click on Watch Meetings. Videotapes are available at the Cupertino Library, or may be purchased from the Cupertino City Channel,777-2364.