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OFFICE OF TFiE CI7Y CLERK
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CITY HALL
10300 TORRE AVEiVUE^ CUPERTINO, CA 95014-3255
��J�'��,���� TELEPHOIVE: (408)777-3223� FAX: (408)777-3366
'�'�e I'lanning Department
]F���o Kirsten Squarcia
�n�����go Subject: Second reading of an ordinance approving a development
agreement by and between the City of Cupertino and IAC at Cupertino
LLC for the Hamptons project located at 19500 Pruneridge Avenue
ll���eo Ju1y 12, 2016
At its July 5, 2016 meeting, the Cupertino City Council took the following action:
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WHEREAS, IAC at Cupertino LLC, a Delaware limited liability corporation,
("IAC") has a legal and equitable interest in certain real property consisting of
approximately 12.44 acres located within the City of Cupertino ("City") more
particularly described and depicted in Exhibits A and B of the Development Agreement
(defined below) ("I'roperty"); and
WHEREAS, the Property is currently developed with 342 residential apartments
that are owned and operated by IAC; and
W�iEREAS, on or about May 28, 2015, IAC applied for various approvals
including a Development Permit (DP-2015-04), an Architectural and Site Approval
Permit (ASA-2015-13), a Use Permit (U-2015-05), a Tree Removal Permit (TIZ-2015-21),
and a Development Agreement (DA-2015-01) to redevelop its existing 342 unit
apartment community on the Property with 942 apartment homes, approximately
32,000 square feet of resident amenity space, and associated facilities and infrastructure
("Project"); and . �
yVHEI�EAS, Government Code Sections 65864 through 68569.5 provide the
statutory authority for development agreements between municipalities and parties
with a fee or equitable interest in real property; and
WHEREAS, Cupertino 1Vlunicipal Code ("CNIC") Section 19.144.010 et seq.,
establishes additional procedures for review and approval of proposed development
agreements by the City of Cupertino ("City"); and
�THERAS, the City and IAC have negotiated a development agreement for the
Project attached hereto as Exhibit 1 ("Development Agreement"); and
V�IHEREAS, approval of the Development Agreement will provide IAC with
assurances that its development of the Property in connection with the Project can
proceed without disruption caused by a change in City planning and development
policies and requirements, which assurance will thereby reduce the actual or perceived
risk of planning, financing and proceeding with construction and use of the
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Ordinarice No. 16-2144
Page 2
development and promote the achievement of the private and public objectives of the
development; and
W�IEREAS, the terms of the I�evelopment Agreement include the following
community benefits funded by IAC:
1. Civic facilities, $7,000,000
2. Extend reclaimed water line for potable water conservation, $1,800,000
3. Wolfe Interchange project, $7,000,000 -
4. Santa Clara Unified School District, $2,400,000. In 1997, the property was
mapped and recorded in fhe Santa Clara Unified School District service
boundaries.
5. Transportation Demand Association set-up, $250,000
6. Transportation Demand Association operations, $50,000 per year
WHEREAS, the Development Agreement includes terms regarding affordable `
housing relocation agreement, affordable housing agreement and declaration of
restrictive covenarits, existing impact fees, transportation demand management �
program and annual review form; and
WHEREAS, the Project is the subject of a Mitigated I�Tegative I7eclaration
("M1VD") prepared pursuant to the California Environmental C,�uality Act ("CEQA")
(Public Resources Code section 21000 et seq.); and
WHEIZEAS, the Planning Commission on l�/Iay 10, 2016 recommended to the City
Council adoption of the M1VD, and approval of the Development Permit, the
Architectural and Site Approval Permit, the Use Permit, the Tree Removal Permit, and
the Development Agreement, with the recommendation to negotiate the extension of
the term �of the original affordable housing agreement for the I'roject and consider a
reduction in housing impact fees in exchange for additional affordable units by
adoption of Resolutions Nos. 6802, 6803, 6804; 6805, 6806; and
WHEREAS, the proposed Deveiopment Agreement was amended to extend the
term of the original affordable housing agreement and to add additional affordable
units to the Project, for a total of 71 affordable units, with a reduction in the housing
impact fees.
NOW, THEREFORE, BE IT OIZDAIlVED AS FOLLOWS:
That after careful consideration of the facts, exhibits; testimony and other evidence
submitted in this matter, the City Council based upori the findings described above, the
public hearing record; the Minutes of 1'lanning Commission 1Vleeting of May 10, 2016,
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Ordinance No. 16-2144
Page 3
,
the Minutes of the City Council Meeting of June 21, 2016, and subject to the conditions
specified below:
Section 1. The recitals set forth above are true and correct, and are hereby
incorporated herein by this reference as if fully set forth in their entirety.
Section 2. The City Council, having considered the evidence received at the
� public hearing duly noticed and held for said proposed Development Agreement, finds
that the community benefits outlined in trie recitals are consistent with the General Plan
because these benefits contribute to the qualify of Iife and general livability for those
who live and/or work in Cupertino. The proposed contributions can be set aside for the
future provision of community amenities including transportation improvements, civic
facilities; schools, water conservation, affordable and/or special needs housing. As
Cupertino's resident and worker population increase, additional amenities will be
necessary to maintain and improve the livability of the community. The Community
Benefit Program is one of the key tools the City will use to help finance and achieve
those amenities that maintain and increase quality of life. In addition to the community
benefits through the development agreement, the proposed application does not
request any General Plan Amendments and is consistent with the General Plan and
Housing Element development standards. Therefore, the City Council further finds
that:
� A. The proposed I�evelopment Agreement is consistent with the
objectives, policies, general land uses and programs specified in the
General Plan.
B. The proposed Development Agreement is compatible with the uses
authorized in, and the regulations prescribed for, the land use
district in which the Project is located.
. C. The proposed Development Agreement is in conformity with and
will promote public convenience, general welfare, and good land
use practice.
D. The proposed Development Agreement will not be detrimental to
the health, safety, or general welfare.
E. The proposed Development Agreement will not adversely affect
the orderly development of property or the preservation of
property values.
F. The proposed Development Agreement will promote and
encourage the development of the Project by providing a greater
degree of requisite certainty.
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Ordinance No. 16-2144
Page 4
Section 3. The City Council hereby approves the Development Agreement.
This approval is based on the City Council's consideration of and reliance on the M1VD
and in accordance with the plans, details and descriptions contained therein, and in the
Resolution adopting the MIVD. The City Manager is hereby authorized to execute the
Development Agreement, subject to such minor or technical revisions as may be
approved by the City 1Vlanager and City Attorney.
Section 4. This Ordinance sha11 be effective thirty (30) days following its
adoption. . .
IlVTRODUCED at a regular meeting of the City Council of the City of Cupertino the
21st day of June 2016, and ENACTED at a regular meeting of the City Council of the
City of Cupertino the 5� day of July, 2016,by the following vote:
�Iote: Members of the Citv CounciL•
AYES: Vaidhyanathan, Paul, Sinks, Wong
1VOES: Chang
ABSElVT: 1Vone
ABSTAIlV: 1Vone
ATTEST: � APPROVED:
/s/Grace Schmidt /s/Barry Chang
Grace Schmidt, City Clerk Barry Chang, Mayor, City of Cupertino
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DA-2015-01
CITY OF CUPERTINO
10300 Torre Avenue
Cupertino, California 95014
RESOLUT'IOlV NO. 6803
OF THE PLANNING COlVIlV1ISSION OF THE CIT'Y OF CUPERTIlVO IZECOMNlElVDIlVG
THAT'I'HE CITY COZJNCIL A�'PROVE A DEVELOPMEIVT AGR�ElVIEIVT FOR THE
DE�lEI,OI'1V�ElVT OF A NEW 942-UNIT APART'NIElVT DEVELOP1VIElVT IlV A PLAlV1VED
RESIDENTIAL ZONING I�ISTRICT LOCATEl�AT 19500 I'�ZUNERIDGE AVENUE
SECTIOI�T I: PIZOTECT I�ESCRIPTIOlV
Application No.: I�A-2015-01
Applicant: Carlene Matchniff
Property Owner: Irvine Company
Location: 19500 Pruneridge Ave(AP1V: 369-06-032, 316-06-037)
SECTIOlV II: FINDINGS FOR DEVELOPMENT AGREElVIE1V'T
WHEREAS, the Planning Coinmission of the City of Cupertino received an application for a
Development Agreement as described in Section I. of this Resolution; and
VVF-iEREAS, Government Code Sections 65864 through 68569.5 provide the statutory authority
for development agreements between municipalities and parties with a fee or equitable interest
in real property; and
WHEREAS, Cupertino 1Vlunicipal Code � 19.144.010 et seq., establishes additional procedures
for review and approval of proposed development agreements by the City of Cupertino; and
WIIEREAS, the necessary public notices have been given as required by the Procedural
Ordinance of the City of Cupertino, and the Planning Coinmission has held at least one public
hearing in regard to the application; and
WHEREAS, the Environmental Review Coxrunittee reviewed a Mitigated Negative Declaration,
which is a concurrent recommended approval under a separate resolution for a development
permit; and �
WI-�EREAS,the applicant has met the burden of proof required to support said application; and
WHEIZEAS, concurrent applications and recommendecl conditions of approval are contained in
file no. DP-2015-04, ASA-2015-13, TR-2015-21, U-2015-05, and EA-2015-03 and shall be
applicable to this approval.
Resolution No.6803 � DA-2015-01 � May 10,2016
WFiEREAS,the terms of the Development Agreement include the following community
benefits funded by Irvine Company:
1. Contribution toward civic facilities, $7,000,000
2. Extend reclaimed water line for potable water conservation,$1,800,000
3. Wolfe Interchange Assessment I�istrict Pro Rata"Fair Share,"$7,000,000 �
4. Continuing obligation of existing term for 34 below market rate units,valued at
$17,000,000
5. Contribution toward Santa Clara Unified School I�istrict, $2,400,000. In 1997, the
property was mapped and recorcled in the Santa Clara Unified School District service
boundaries.
' WHEREAS, the Development Agreement will include additional terms regarding affordable
housing and the transportation demand management program; and
VVHEREAS, the 1'lanning Commission directed the applicant to work with staff to amend the
development agreement to explore the increase of below market rate housing units, such as by
extending the term of the existing 34 below market rate units and/or by providing additional
below market rate units in lieu of affordable housing fees;and
WHEIZEAS, approval of the Development Agreement will provide Irvine Company with
assurances that its development of the Property in connection with the Project can proceed
without disruption caused by a change in City plannulg and development policies and
requirements, which assurance will thereby reduce the actual or perceived risk of planning,
financing and proceeding with construction and use of tlie development and promote the
achievement of the private and public objectives of the development; and
WHEREAS, the Planning Commission finds as follows with regard to this application:
A I�evelopment Agreement shall be enacted by ordinance by the City Council upon making the
following findings:
A. Is consistent with the objectives, policies, general land uses and programs specified in
the General Plan and any applicable specific plan;
B. Is compatible with the uses authorized in, and the;regulations prescribed for, the land
� use district in which the real property is or will be located;
C. Is in conformity with and will promote public convenience, general welfare and good
land use practice;
D. Will not be detrimental to the health, safety and general welfare;
E. Will not adversely affect the orderly development of property or the preservation of
property values;and
F. Will promote and encourage the development of the proposed project by providing a
greater degree of requisite certainty.
The community benefits outlined in the recitals are consistent with the General Plan because
these benefits contribute to the quality of life and general livability for those who live and/or, work
in Cupertino. The proposed contributions can be set aside for the future provision of community
amenities including transportation improvements, civic facilities, schools, water conservation,
Resolution No.6803 �� DA-2015-01 �� May 10,2016
affordable and/or special needs housing. As Cupertino's resident and worker population increase,
additional amenities will be necessary to maintain and improve the livability of the community.
The Community Benefit Program is one of the key tools the City will use to help finance and
achieve those amenities that maintain and increase our quality of life. In addition to the
community benefits through the development agreement, the proposed application does not
request any General Plan Amendments and is consistent zvith the General Plan and Housing
Element development standards.
1VOW,THEREFORE,BE IT RESOL�TED:
That after careful consideration of the initial study, maps, facts, exhibits, testimony and other
evidence submitted in this matter, subject to the conditions which are enumerated in the
resolutions of concurrent applications:
The application for a Development Agreement, Application no. DA 2015-01 is hereby
recommencled for approval, and that the subconclusions upon which the findings and conditions
specified in this Resolution are based and contained in the Public Hearing record concerning
Application no. DA-2015-01 as set forfh in the 1Vlinutes of Planning Commission Meeting of May
10,2016, and are incorporated by reference as though fully set forth herein.
PASSEI� AlVi� APPROVED this 10th day of 1VIay 2016, at a meeting of the Planning
Convnission of the City of Cupertino by the following roll call vote:
AYES: COMMISSIOIVERS: Chair Takahashi,Vice Chair Gong;Paulsen,Sun
NOES: COMMISSIONERS: Lee
ABSTAIlV: COMMISSIONERS:none
ABSENT: COMMISSIONERS:none
AT'TEST: APPIZOVED:
/s/Aarti Shrivastava /s/Alan Takahashi
Aarti Shrivastava Alan Takahashi,Chair
Dir. Community Development Pla�v.-ung Coininission
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