Exhibit CC 07-05-2016 Item No. 11 Cupertino Elections Code 9212 Report on Proposed Vallco Town Center Specific Plan InitiativeCupertino
Elections Code 9212
Report on Proposed
cc 07/05/2016
Item No.11
Vallco Town Center Specific Plan Initiative
Seifel Consulting Inc.
www.seifel.com
CUPERTINO
Tuesday July 5, 2016
Presentation Overview
1. Summary of the Initiative
2. Approach to 9212 Analysis
3. Summary of Findings
Technical Team
• Seifel Consulting , Inc .
• David J. Powers & Associates , Inc .
• Fehr & Peers Transportation Consultants
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Summary of the Initiative
Stated Purpose of the Initiative
• Provide that the Vallco Shopping District Specia l Area
contains a mixture of uses including residential , office , retail ,
civic and education .
• Require any development to fund or provide community
benefits such as trans it, schools, a green roof , and recyc led
water .
Grant the property owner initial entitlements to develop in
accordance with the Initiat ive , establish a process for future
approvals , and make re lated amendments to Cupertino's
General Plan and Mun icipa l Code.
Vallco Shopping District Special Area
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Valleo Sftoppit19 Oktriet
SpKial Art.s , Nord\V.allco
• General Plan envisions the
complete redevelopment
of Vallee into a vibrant
mixed-use "town center"
"-SO!,lth 0. An~;1
SpttYl~.a
• Expressly requires
adoption of a Specific Plan
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Seifel Consulting Inc.
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Summary of the Initiative
Vallco Town Center Specific Plan
AMENDMENT TO GENERAL PLAN , APPENDIX A
Vallco Town Center Specific Plan
" The Vallco Town Center Specific Plan designat ion applies "
to the Vallco Shopping District Special Area , and allows
a mix of uses , including retail , restaurant entertainment ,
resident ial , office , hotel , public (including civic),
quasi -publ ic, educational , parks , open space ,
and amenities. Projects developed under this designation
must be consistent with the Val lco Town Center
Specific Plan .
Summary of the Initiative
Key Components of Specific Plan
• Housing 389 residential units
Minimum 80 units of senior housing
or 20 % of total units
• As under the existing General Plan , this number of units
could be increased up to the ma ximum residential units
available under the General Plan (estimated at about
800 units) with the issuance of a conditional use permit
(CUP).
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Seifel Consulting Inc.
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Office
Summary of the Initiative
Kev Comoonents of Soecific Plan
" I I
• 2,000 ,000 sq.ft .
• Minimum 100 ,000 sq .ft .
of incubator space
Commercial • 640 ,000 sq.ft.
Hotel
Public I Civic
• Regional retail, entertainment, personal
service
• 191 hotel rooms
• In addition to a previously-approved hotel
of 148 rooms
• Minimum 50,000 sq .ft.
• Possibly 100 ,000 sq .ft . if office space
correspondingly reduced 1
Summary of the Initiative
Key Components of Initiative Buildout
in Specific Plan
Buildout of all uses consistent with General Plan
Commercial/Retail buildout reduced from roughly
1,200,000 sq.ft. (replacement of existing mall) to 640 ,000 sq.ft.
• 640 ,000 sq.ft. amount at Vallco is consistent with General Plan and
would mean that the square footage reduction below maximum
allowable (roughly 560 ,000 sq .ft .) could be allocated for buildout
elsewhere within Cupertino
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Seifel Consulting Inc.
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Summary of the Initiative
Key Components of Specific Plan
Parks and
Open Space
Community
Facilities
• Two ground-level Town Squares
(totaling at least 3 acres in area)
• A 30-acre , publicly accessible "green
roof '
• Community park
• Nature area
• Minimum 3.8 miles of trails
• 20 ,000 sq .ft . banquet/event hall
• Community hub building
• 300-seat amphitheater
• A playground
Community Benefits and EDFs
1. Transportation-Provide $6 million for a
bike/pedestrian trail along 1-280 and contribution of
$30 million for freeway infrastructure, along with
other significant transit and circulation
improvements.
2. Education-Provide in -kind and monetary
contributions for educational space, buildings and
facilities-valued at no less than $40 million-
for FUHSD and CUSD .
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Community Benefits and EDFs
3. Housing-Include a minimum of 80 units of
senior housing and encourage onsite provision of
affordable housing units.
4. Land Use and City Revenue-Maintain operation
of existing movie theater during construction ,
deliver 25% of retail in first phase and provide
a minimum of 100,000 sq .ft . of incubator work
space.
Community Benefits and EDFs
5. Civic-build town squares , green roof , community
park , community facilities , other public amenities
and broad range of sustainability features
including extension of recycled water
infrastructure.
6. Environmental Desig n Features (EDF)-
incorporate and implement improvements to
mitigate pote ntially significant environmental
impacts .
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Summary of the Initiative
Proposed Changes to General Plan
• Reduce the amount of flexibility regarding the types of
land uses that may be deve loped by requiring rather than
permitti ng certain uses .
• Add additional requirements for recycled water use ,
open space , sen ior apartments , off ice use , and
transportation fund ing.
Make it easier for a developer to subdivide the Va ll co
area , provided there are adequate protective measures to
prov ide incentives and guidel ines for cooperation among
owners .
Summary of the Initiative
General Plan Compatibility
The proposed uses and amo unt of deve lopment are cons iste nt
with what is current ly perm itted in the exist ing Genera l Plan and
cou ld be accomplished wi th out an ini ti ative .
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Seifel Consulting Inc.
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Summary of the Initiative
Proposed Changes to Municipal Code
• Add a new zoning district entitled "Va ll co Town Center
Specific Plan " district , and provide that development within
that district will be governed by the standards contained in the
"Vallco Town Center Specific Plan " (Specific Plan).
Limit the City's discretionary ability to deny a
"conditional use permit" (CUP) for addit ional residential
units in the Vallco area , up to the maximum General Plan
allocations , if there are no sign ificant and unavoidable impacts
beyond those identified in the General Plan Environmental
Impact Report (EIR).
Approach to 9212 Analysis
Requirements per State Law
Land Use and Housing pe r section 9212 (b)(2 & 3)
Internal cons istency of General and Specific Plans , zon ing ,
and limitations on city actions .
• Effect on use of land , impac t on housing and regional housing
needs .
Development Pattern s per section 9212 (b)(6 & 7)
Impact on agricultural lands , vacant parcels , and areas
designated fo r rev itali zation and existing business districts .
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Approach to 9212 Analysis
Requirements per State Law
Economic Development per section 9212 (b)(5)
• Impact on ability to attract and retain business and employment.
Infrastructure and Environmental per section 9212 (b)(7)
• Impact on transportation , schools , open space , public services
and utility infrastructure .
Infrastructure Funding per section 9212 (b)(4)
• Impact on funding for infrastructure of all types of services .
Fiscal per section 9212 (b)(1)
Impact on the City 's fiscal conditions .
Approach to 9212 Analysis
Comparison of Development Scenarios
Compares potential future development citywide and at Vallco,
Without and With Initiative
• Adopted General Plan-
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Development in the City of Cupertino occurs as envisioned by the
City's currently adopted General Plan entitled General Plan
(Community Vision 2015-2040).
• General Plan With Initiative-
Development in the City of Cupertino occurs as envisioned by the
Initiative and assumes the City 's General Plan is amended by the
Initiative as proposed .
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Seifel Consulting Inc.
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Comparison of Development Buildout Citywide by Land Use
I Citywide Development Buildout in 2040
Adopted General Plan Increase I (Decrease) with
Land Use General Plan with Initiative Initiative
Res idential (units) 23 ,294 23 ,294 No Change
Commercial (sq .ft .) 4,430 ,982 4,430,982 No Change
Office (sq .ft .) 11,470,005 11,4 70,005 No Change
Hotel (rooms) 1,429 1,429 No Change
As shown , the Initiative would have no impact upon the maximum
allowable amount of residential and/or non-residential development
that could be built citywide .
Comparison of Development Buildout at Vallco by Scenario
Scenarios Vallco Shopping Distr ict Special Area
Initiative ::;cenano vv1thout Initiative vv1th Initiative
Development Adopted Adopted Amended General Amended General
Scenario General Plan General Plan Plan Plan
(389 Units) Assuming and Specific Plan and Spec ifi c Plan
Sand Hill (389 units) (800 units)
Proposal
(800 Units)
CUP ::;cenano vv1tnout (;Uf-' vv1tn (;Uf-' vv1tnout (;Uf-' vv1tn (;Uf-'
Re sid ential (units) 389 800 389 800
Offic e (s q. ft.) 2,000 ,000 2,000,000 2,000 ,000 2,000 ,000
Comm erc ial (sq. ft.) 1,200 ,000 650,000 640 ,000 640 ,000
Hotel (room s) 339 339 339 339
As shown , differences in allowab le buildout at Vallco are due to
the va riation in residential units (w ith/without CUP) as well as
amount of allowable commercial space .
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Report Findings
Overview
• All of the land uses described in the proposed Specific Plan are
cu rrently allowable in Adopted Genera l Plan and the Specific
Plan would not change allowable buildout citywide.
• As citywide land use all ocations and bu il dout do no t change ,
the majority of the environmental impacts will occu r with or
without the Initiative .
• Overall , the Spec ific Plan and its environmental design features
either exceed or are consistent (and sufficient) with what the
City would typically require as mitigation or cond itions of
approva l under standard approval process , with exception of
traffic at certain intersections and vehicle parking .
Report Findings
Land Use and Housing
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• Lock into place new development and building standards
for the Vall ee Shopping Distr ict Spec ial Area thro ugh adoption of
the Va ll ee Town Center Specif ic Plan .
• lncentivize redevelopmen t of the Va llee Shopp ing Ma ll.
• Limit the City's ability to deny a conditional use permit fo r
additiona l residen tial deve lopment in the Va ll ee area .
Reduce commercial/retail space in the Vallco area by about
560 ,000 square feet , wh ich could then be available for bu il dout
elsewhere in the City .
Provide for enhanced community benefits as specified in the
Specific Plan and enforceable th rough Condition s of Approval
or a Development Agreement.
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Report Findings
Land Use and Housing
• Reduce the City's discretion regarding the timing , mix , location
and types of uses to be included within the redeveloped area.
• Reduce City's ability to impose conditions requiring
community benefits or mitigation measures different than those
described in the Initiative , without subsequent voter approval.
Require voter approval for changes to the Specific Plan ,
modifications to development that are significantly different from
the standards in the Specific Plan , or other changes to provisions
of the Initiative , prior to January 1, 2027 .
Report Findings
Development Patterns, Economic Development
• Facilitate increased job and business opportunities from
new retail , office and hotel development in the Vallco area ,
although the Initiative would not increase what is already
permitted in the General Plan .
Have a positive impact overall on infrastructure funding
and the prov ision of infrastructure for transportation , schools
and parks in the City , as well as the development of senior
and affordable housing .
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Report Findings
Infrastructure and Environment
Voter Initiatives not subject to CEQA
• Analysis is NOT a CEQA analysis
• Analysis is NOT a technical peer rev iew of the EA submitted
by the Initiative proponents
Analysis IS a high-level analysis
• Identifies environmental impacts
• Determ ines whether the EDFs are in excess, consistent or
inconsistent compared to what the City would typ ically
require
Report Findings
Infrastructure and Environment
EDFs In Excess
• Schools
• Parks/Open Space
• Police
• Fire
• Library
• Energy
• Biological Resources -
Nitrogen Deposition
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EDFs Consistent
• Transportation (except for
intersection LOS and vehicle
parking)
• Wastewater/Sewe r
• Water
• Aesthetics
• Air Quality
• Biological Resources -Birds
and Trees
• Cultural Resources
• Geology and Soi ls
• GHGs
• Hazardous Materials
• Noise
EDFs/Specific Pla n
Inconsistent
• Transportat ion -
Intersection LOS and
veh icle parking
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Seifel Consulting Inc.
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Report Findings
Infrastructure and Environment
EDFs/Specific Plan Inconsistent
Intersection LOS
60 intersections studied , 15 significantly impacted
EDFs insufficient
City would require additional and /or alternative improvements
to EDFs
Vehicle Parking
Specific Plan= 9,060 spaces ; Municipal Code= 10,413
spaces OR a different number if substantiated by a deta iled
parking study
Opportunity for Requiring Additional Mitigation
If the Initiative is adopted , City would likely have the ability to
complete environmental review for subsequent approvals and
require mitigation, application of a TMFP, or conditions of
approval. 21
Report Findings
Infrastructure Funding
(in constant FY 2015/16 dollars)
• Have a positive impact overall on infrastructure funding
• Would provide funding for transportation , schools and parks
in the City, as well as the development of senior and
affordable housing .
Without In itiative With Initiative
Amended General Amended
Adopted General Plan General Plan
Adopted General Plan Assuming and and
Plan Sand Hiii Proposal Specific Plan Specific Plan
(389 Units) (800 Un its) (389 Units) (800 Units)
Net Increase In Infrastructure Fund ing
School Impact Fees Tota l S9,560,000 S9,150,000 S9,320,000 S8,810,000
Park Dedication In-Li eu Fee S4 1,590,000 540,270,000 S40,630,000 S39,llO,OOO
Housing Mitiga tion Fee SIOl,670,000 S99,710,000 SI02,450,000 SIOl,310,000
Total Impact Fcf Revenu es Sl52,820,000 Sl49,IJO,OOO $152,400,000 $149,230 ,000
Val/co0 11 "1 S59,830,000 Sl0,190,000 SSJ ,500,000 S l 0,180,000
Note : Figures rounded to the nearest thousand . Numbe rs may not add up precisely due (O roun ding . 28
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Report Findings Fiscal
Current distribution of City's Fiscal Revenues
FY 2015/16 Budget
• Allows for the increase in potential revenues from the City 's major
sources of General Fund revenues : sales tax , property tax and TOT.
Summary of General Fund Annual Revenues
Without Initiative With Initiative
Adopted
General Plan Amended General Amended
Adopted Assuming Plan General Plan
General Sand Hill and and
Plan Proposal Specific Plan Spec ific Plan
(389 Untts) (800 Units) (389 Untt s) (800 Untts)
Net Increase in General Fund (GF) Annual Revenues
Citywi de
Sa les Tax $2 ,770,000 $3,670,000 $3,660,000 $3,660,000
Prop erty Tax $1,900,000 $1,850,000 $1,850,000 $1 ,850,000
Transient Occupanc y Tax (TOT) $2,360 ,000 $2,360,000 $2,360,000 $2 ,360,000
Citywide Net Increase in GF Revenues $7,030,000 $7,880,000 $7,870,000 $7,870,000
Va lko
Sa les Tax $1,450,000 $1,6 00,000 $1,580,000 $1,580,000
Propert y Tax $1,050,000 $980,000 $850,000 $970,000
Transient Occupancy Ta x (TOT) $1,440,000 $1,440,000 $1,440 ,000 $1,440,000
Net Increase in G F Revenues from Valko $3,940,000 $4,020,000 $3,870,000 $3,990,000
Slight variations in potential fiscal impact among alterna tives due to amount of proposed
residential and commercial development, as well as the provision of affordable housing units .
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Report Findings
Summary of Fiscal Impacts
Annual net fiscal impact (revenues minus costs) from General Fund
with Initiative would likely be higher than Adopted General Plan ,
particularly in upcoming years if development moves forward, due to
the following:
Higher level of taxable retail sales per square foot expected from
expedited increase in retail sales at Vallco
Broad range of fiscal revenues to the City if new mixed-use
development (residential, office and hotel) moves forward at
Vallco
Reduced cost of City services resulting from fewer residents
expected in senior apartments , which typically have smaller
household size.
Report Findings
Summary of Fiscal Impacts
• Financing to implement the Specific Plan:
Public Financing (Optional)
City has option to decide whether to implement any of the proposed public
financing options proposed in Specific Plan
If City decides to establish a CFD or other public financing mechanism , City will
require outside experts and staff time to establish it (costs mostly reimbursable
but City may need to provide initial funding and provide staff oversight)
Since City has long-term fiduciary responsibility , City could incur incur annual
oversight costs , although potentially reimbursable through administrative fees
Private Financing
All costs borne by property owners
Specific Plan example-an annual operation and maintenance fee could be
charged to commercial owners or occupants to fund the green roof/open space
and recreation amenities within the Vallco area .
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Question and Answer
Potential Future Election Costs
The City would be required to pay for the costs of any
election required by the Initiative :
Estimated costs for holding an election depend on
whether the City places the measure(s) on the ballot as a
"stand-alone " or "consolidated " election.
Stand-alone election costs on a single ballot measure
would be approximately $431 ,000 .
Consolidated election costs (i.e., an election on a date
the County is already conducting an election) would be
approximately $106,300.
These costs are estimates only and do not include any
staff time or other expenses the City might itself incur.
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Significantly Impacted Inte rsections
1. De Anza Boulevard /Stevens Creek
Boulevard
2. De Anza Boulevard /McClellan Road
3. De Anz a Bouleva rd/Bollinger Road
4. Wolfe Road /Ste vens Creek Bou le vard
5. Miller Avenue /Bollinger Road
6. Stevens Creek Bou le vard /Tan ta u Avenue
7. Stevens Creek Boulev ard /Calve rt Drive -1-
280 Ramps (E)
8. Stevens Cree k Boul ev ard /Lawre nce
Expressway Ram ps (W)
9. Lawr enc e Exp ress way/1-280 Sou thb ound
Ramp s
10. Lawre nc e Expressway /Mitty Way
11. Lawre nc e Expressway /Boll inger Road
12 . Lawrenc e Expresswa y/Doyl e Road
13. Lawren ce Expressway /Prosp ec t Road
14 . Lawre nc e Expressway /Saratoga Av enue
15. SR 85 (Nort h)/Sarat oga Av enu e
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Comparison with CCGSI Report
• CCGS I
• Involved amendments to General Plan on ly
• Made substantial changes to General Plan polic ies and vision for
Va ll co area .
GI
• General Plan amendments affected development standards citywide ,
which included modifications to building he ight limits
Seifel Consulting Inc .
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• Vall co
• Makes minimal changes to General Plan and amendments focused
on accomp lishing deve lopment in the Vallco area
• Implements po licies in Gene ral Plan fo r Vallco area
• Adopts detailed and lengthy Spe ci fic Plan for Vallco area , which
requires specific development standards to accomplish mixed use
development , including mod ifications to building height lim its
•
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Enforceability of "Community Benefits"
• Does proposed language actually require
developer to provide community benefits
(e .g., shall versus may)?
• Are requirements legally enforceable?
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