Vallco Specific Plan

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Last night, the Cupertino City Council adopted the Vallco Town Center Specific Plan in a 3-2 vote.

The discussion began at the Council’s September 18, 2018, public meeting. It included a staff presentation followed by consultant presentations, owner statement, Council questions, and public comment period where 72 people spoke.

The meeting was adjourned at 1:50 a.m., after the last public comment, with Council reconvening on September 19, 2018, at 5 p.m. to continue discussion of the item. Council asked questions regarding the EIR, Specific Plan and development agreement, which were answered by staff and consultants.

The following is a summary of the development program and community benefits within the development agreement:

	TIER 2 DEVELOPMENT PROGRAM (with "community benefits density bonus") (Vallco Property Owner, LLC)
Maximum Residential (Number of units)	2,668
Minimum Commercial/Retail (Square feet)	400,000
Minimum Civic/Cultural Uses (Square feet)	85,000
Maximum Office (Square feet)	1,500,000
Maximum Office Amenity Space (Square feet)	250,000
Maximum Hotel (Number of rooms)	191
Minimum Public (on ground) Open Space (Acres)	6.0

Community Benefits List:

Performing Arts Center – Vallco would either, at City’s option: (i) build and lease to City a 60,000 square foot “warm shell” space suitable for a performing arts center (PAC), or (ii) pay the City a $22,800,000 in lieu payment.
City Hall – Vallco would either (i) demolish the existing City Hall building and then build and deliver to City a 40,000 square foot “warm shell” new City Hall including underground parking, substantially consistent with the City’s 2015 civic center master plan, or (ii) pay the City a $30,000,000 in lieu payment.
School District Benefits –
- FUHSD - Vallco would commit to either (i) build and lease to FUHSD a 25,000 square foot “warm shell” space, or (ii) pay FUHSD a $9,500,000 in lieu payment, with terms to be set forth in a separate agreement to be entered into between Developer and FUHSD.
- CUSD – Vallco would make a payment to CUSD in the amount of $14,250,000 pursuant to a separate agreement, which would decrease to $9,500,000 if there is a challenge to the Project.
Affordable Housing – Vallco would agree that 20% of the residential units would be provided as affordable housing at the following percentages: 15% at extremely low, very low and low income levels and 5% at moderate income level.
Transportation Benefits –
- Vallco would implement a TDM Program.
- Vallco would pay $11 million to City to fund work in connection with the Wolfe Road/I-280 and the Junipero Serra Bike/Pedestrian Trail. This would decrease to $5.5 million if there is a challenge to the Project.
- Vallco would fund up to $1 Million for a 1-year pilot shuttle program and, if successful $750,000 thereafter for 9 years, which would decrease if there is a challenge to the Project.
- Vallco would provide a mobility/bike hub within the project.

Detailed information can be found in the City Council’s September 18 agenda at www.cupertino.org/agenda

Frequently Asked Questions (updated 9/4/18)

The City has prepared responses to Frequently Asked Questions related to the preparation of the Vallco Town Center Specific Plan. Click here to view or see FAQS box on the right.

Prior Actions:

The Cupertino City Council reconvened on September 19, 2018, at 5 p.m. in Cupertino Community Hall, 10350 Torre Avenue, to continue its consideration of the Vallco Specific Plan item. The public hearing for this item was closed at the September 18, 2018 meeting.

On September 18, 2018 at 5:00 p.m. at the Cupertino Community Hall, the City Council began to consider adoption of the Vallco Town Center Specific Plan, and a Development Agreement proposed by the Vallco Property Owner LLC. Although not a development application, meaning that no project will be approved or denied at the meeting, the Specific Plan, if adopted, would create two tiers of possible development within the plan area (see table below). Detailed information can be found in the City Council’s September 18 agenda at www.cupertino.org/agenda and www.cupertino.org/vallco.

	TIER 1 DEVELOPMENT PROGRAM (without "community benefits density bonus")	TIER 2 DEVELOPMENT PROGRAM (with "community benefits density bonus")
Maximum Residential (Number of units)	2,034	2,923
Minimum Commercial/Retail (Square feet)	600,000	485,000
Maximum Office (Square feet)	750,000	1,500,000
Maximum Office Amenity Space (Square feet)	N/A	250,000
Maximum Hotel (Number of rooms)	339	339
Minimum Civic/Cultural Uses (Square feet) (included in commercial/retail above)	None Required	85,000
Minimum Public (on ground) Open Space (Acres)	6.0	6.0
Heights (depending on location)	45’ – 120’	45’ – 150’

The Tier 1 program has a base density allowed by right under the Specific Plan. It retains the existing residential density of 35 dwelling units per acre, minimizes office use, and maximizes commercial/retail development.

The Tier 2 program includes a “community benefits density bonus” as an alternative to the State Density Bonus Law, which allows a maximum residential density bonus of 35% above the base density. Tier 2 would also allow for additional office space and amenities (such as labs and fitness areas), with community benefits would be memorialized in a development agreement.

Both tiers would require six acres of public open space, such as parks, on the ground level.

In addition, an Environmental Impact Report (EIR) prepared to evaluate the environmental effects of the proposed project will also be considered. Adoption of the Plan will require General Plan Amendments, and Municipal Code Amendments and Zoning Actions, all of which will also be considered concurrently.

The Environmental Review Committee met on August 31, 2018 and recommended that the City Council certify the EIR. The Planning Commission met on September 4, 2018 and considered the proposed project. They unanimously recommended that the City Council adopt resolutions regarding the Environmental Assessment, Municipal Code and Zoning amendments required to implement the project. They recommended approval of the General Plan Amendments, Specific Plan and the Development Agreement on a 4-1 vote with a recommendation that the Council consider the addition of a middle tier of development, between Tier 1 and Tier 2, with 2,923 residential units, reduced office allocation and a commensurate reduction in community benefits. The Planning Commission recommended that the community benefits be considered in the following order of preference:

Increase in benefits to the Cupertino Union School District
Maintain benefits to the Fremont Union High School District
Incorporate a 20% Below Market Rate (BMR) component, including 40 Extremely Low Income housing units
Contributions to transportation and traffic improvements
Rebuild City Hall
Construct a Performing Arts Center on-site

The Vallco Specific Plan is separate from the Vallco Town Center SB 35 proposal. Information on that project can be found at www.cupertino.org/vallcosb35.

Planning Commission Recommendation:

The Planning Commission met on Tuesday, September 4, 2018 and adopted:

Resolution No. 6860 recommending that the City Council certify the Final EIR, make CEQA findings, adopt a statement of overriding considerations and adopt a Mitigation Monitoring and Reporting Program on a 5-0 vote;
Resolution No. 6861 recommending that the City Council adopt the proposed General Plan Amendments to allow implementation of the Vallco Town Center Specific Plan with modifications identified in Resolution No. 6861 on a 4-1 (Liu: no) vote;
Resolution No. 6863 recommending that the City Council adopt the proposed Vallco Town Center Specific Plan with modifications identified in Resolution No. 6863 on a 4-1 (Liu: no) vote;
Resolution No. 6864 recommending that the City Council adopt the proposed Municipal Code Text Amendments to allow implementation of the Vallco Town Center Specific Plan on a 5-0 vote;
Resolution No. 6862 recommending that the City Council adopt the proposed Zoning Map Amendments to allow implementation of the Vallco Town Center Specific Plan on a 5-0 vote; and
Resolution No. 6865 recommending that the City Council adopt the proposed Development Agreement with modifications identified in Resolution No. 6865 on a 4-1 (Liu: no) vote.

The public agenda packet, which includes the staff report and attachments, is available online at www.cupertino.org/agenda.

Environmental Review Committee (ERC) Meeting Recommendation:

The Environmental Review Committee met on Friday, August 31, 2018 and recommended that the City Council certify the Vallco Specific Plan Environmental Impact Report.

A recording of the meeting proceedings is available here.

The ERC on a 5-0 vote recommended that the City Council certify the Final EIR as having been prepared in compliance with the California Environmental Quality Act (CEQA). The ERC's determination is available online here.

Vallco Town Center Specific Plan - Public Review Draft

The Public Review Draft of the Vallco Specific Plan, which contains the vision and specific development parameters for redevelopment of the Vallco Special Area, is now available here:

Public Review Complete Draft - All Chapters

Individual Chapters:
Ch 1 - Purpose and Intent - Public Draft
Ch 2 - Background and Setting - Public Draft
Ch 3 - Vision - Public Draft
Ch 4 - Mobility - Public Draft
Ch 5 - Infrastructure and Public Facilities - Public Draft
Ch 6 - Development Standard - Public Draft
Ch 7 - Admin Implementation and Financing - Public Draft

Environmental Documents

Final EIR

On a 4-1 vote on September 19, 2018, the City Council certified the Final Environmental Impact Report (FEIR), adopted CEQA findings, a Statement of Overriding Considerations and adopting and incorporating the mitigation measures into the Project, and adopted a Mitigation Monitoring and Reporting Program The Final Environmental Impact Report (FEIR) for the Vallco Specific Plan, which is available here:

Vallco Final EIR - Part 1
Vallco Final EIR - Part 2

Appendices:

Appendix A - Air Quality Modeling Memo
Appendix B - Revised Project Traffic Memo
Appendix C - Please visit this link for the original Public Comments

Recirculated Amendment to Draft EIR

The Recirculated Amendment to the Draft Environmental Impact Report (EIR) for the Vallco Special Area Specific Plan Project was available for a 45-day public review period until Monday, August 20, 2018 at 5:30 p.m.

The City held a meeting on Tuesday, August 7, 2018 at Cupertino Community Hall, to receive comments on the Draft EIR Amendment. A recording of the meeting is available online here.

The Notice of Availability of the Draft EIR Amendment is online here.

Draft EIR Amendment:

Vallco Special Area Specific Plan EIR Amendment

Appendices:

Appendix A - Supplemental Air Quality and Greenhouse Gas Assessment
Appendix B - Supplemental Noise and Vibration Assessment
Appendix C - Supplemental Traffic Impact Analysis
Appendix D - Revised Water Supply Assessment

Draft Environmental Impact Report

The Draft Environmental Impact Report (EIR) for the Vallco Special Area Specific Plan Project was available for a 45-day public review period until Monday, July 9, 2018 at 5:30 p.m.

The City held a meeting on Tuesday, June 19, 2018 to receive comments on the Draft EIR. A recording of meeting is available online here.

The Notice of Availability of the Draft EIR is online here.

Draft EIR:

Vallco Special Area Specific Plan Draft EIR

Appendices:

What's after Charrette 2? June 4th study session.

City staff and city's consultant team will present a report of the work done so far to City Council at a study session on Monday, June 4th at 4 pm, Community Hall. From there, this will assist our team in concisely working on next steps.

What is a Specific Plan?

The specific plan creates objective standards and rules of development, such as heights, massing, building locations, public spaces and location of uses. The plan would include graphics to illustrate the standards and rules. In creating a specific plan, the community, the City and its consultants are not designing the project. Like the Cupertino Municipal Code, which contains development rules for other neighborhoods, these rules would apply to the current owner of Vallco and any future owner or owners. It helps the city prepare for the future, regardless of ownership.

Your comments and questions welcomed

The first draft of specific plan program and design options, presented on 4/13/2018, are now posted on the project website: www.envisionvallco.org

Each option requests comments and questions, which will help us refine the drafts for charrette 2 and create information for frequently asked questions, as the dialogue and work needed continues.

Why is the city's specific plan process more important than ever, even though the city received an SB 35 application from the developer?

The Specific Plan creates an ongoing opportunity for negotiation of design details, a development agreement and community amenities. There is no path for negotiation in the SB 35 application process. Community members are encouraged to continue to stay engaged in the design and planning process of the Vallco Special Area.

Get Involved!

There will be many more opportunities for you to be involved and share your comments, thoughts and ideas. Consider signing up for e-notifications to receive timely updates via email. You can also sign up on the new project website http://envisionvallco.org for more updates.

IMPORTANT NOTICE:

Please be advised that pursuant to Cupertino Municipal Code 2.08.100, written communications sent to the Cupertino City Council, Commissioners or City staff concerning a matter on the agenda are included as supplemental material to the agendized item. These written communications are accessible to the public through the City's website and kept in packet archives. You are hereby admonished not to include any personal or private information in written communications to the City that you do not wish to make public; doing so shall constitute a waiver of any privacy rights you may have on the information provided to the City.

Project Archive - Past meetings/documents

For archived information on this project, please visit the archive webpage by clicking here: Vallco Specific Plan Archive.

Events

Planning Commission Meeting - Cancelled
09/25/2018 6:45 pm - 11:00 pm
Planning Commission Meeting
10/09/2018 6:45 pm - 11:00 pm
Planning Commission Meeting
10/23/2018 6:45 pm - 11:00 pm
Planning Commission Meeting
11/13/2018 6:45 pm - 11:00 pm
Planning Commission Meeting
11/27/2018 6:45 pm - 11:00 pm
Planning Commission Meeting
12/11/2018 6:45 pm - 11:00 pm

More Events

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FAQs

What is a Specific Plan and why is one required for Vallco?

A specific plan establishes the rules of development. The general plan requires that a specific plan be prepared for Vallco, not just for the mall property but the entire plan area. A specific plan is a regulatory document that establishes the desired vision for an area through a framework of objective standards and guidelines for land use, site layout, streetscape, open space, buildings, etc. The specific plan will provide what everyone wants – predictability. The community wants it and the developer wants it.
What is Sand Hill's involvement with the Vallco Specific Plan?

Sand Hill requested the initiation of a new specific plan process and exploration of other alternatives/options for their site. However, since the City must also include the entire plan area in the process, so along with the community, all owners of property in the plan area are involved.
Who's paying for the Vallco Specific Plan?

Sand Hill Property Company. As we do with all property owners, the City charges for the estimated time and expense of planning and administrative services. The City of Cupertino does not subsidize development and all owners must pay their fair share according to the City’s fee schedule. The City, however, selects our consultants independently, and pays the consultants directly.
What's different now from past efforts for the development of Vallco?

New state laws have been passed that provide a fast track approval option for property owners who provide a certain amount of housing. If owners qualify and choose these fast track options, the community loses two important things: (1) the ability to influence or comment on the design, mix of uses and land use patterns and (2) a development agreement if the community wants certain public benefits exceeding those required through ordinances, fees and legal environmental mitigations, such as additional community facilities, funding for trails or bike paths, etc.

The City and consultant team is committed to a robust community engagement process. Recognizing that we cannot all speak at once or be at every meeting (and that reasonable minds can disagree), there will be a variety of formats to include as many as possible throughout the year. Choose what works for you. At the same time, we urge you to assure that this process is a community win.
Why is the timeline for preparation of the Vallco Specific Plan so fast (or so slow)?

The City planning staff and consultant team are working hard to balance speed and efficiency with quality, transparency and inclusion. In acknowledgement of the current legislative landscape, if we go too slow, we risk a failed process. If we go too fast, we risk missing community voices and important details. Please support the process by signing up to receive e-notifications at: www.cupertino.org/vallco.
How do the City's BMR Requirements apply to the Vallco Town Center Specific Plan?

The City's BMR Program requires that 15% of new rental housing be developed as below market rate (BMR) housing, with 60% of that reserved for very low income households and 40% reserved for low income households. Projects developed pursuant to the Specific Plan would be consistent with, or exceed, the City's standard requirements.
For example, Vallco Property Owner LLC could develop up to 1,779 units on their property at the maximum base density allowed under the proposed Specific Plan could as a "Tier 1" project. This project would be required to reserve 267 units for BMR housing, including 161 units for very low income households (about 9% of the base density) and 106 units for low income households (about 6% of the base density). A Tier 1 project would satisfy the City's standard BMR requirements.
If the same applicant applied for a community development density bonus as a "Tier 2" project, 196 units would be required for very low income households, which equals 11% of the base density. Under the proposed Development Agreement, 205 units would be required for low income households (about 12% of the base density) and 133 additional units would be required for moderate income households. Therefore, a Tier 2 project would exceed the City's standard BMR requirements.
Why does the EIR include a "Revised Project"?

The City's economics consultant reviewed the potential for feasible mixed use development at the site, and recommended a much lower maximum for non-office commercial uses be included as a feasible development alternative in connection with other community benefits, such as increased affordable housing, development of a City Hall, development of a Performing Arts Center and increased contributions toward transportation choices (e.g. a fixed route community shuttle). This concept is reflected in the draft Vallco Town Center Specific Plan and the Development Agreement.

Accordingly, the EIR analyzes a "revised project" alternative with reduced commercial allocations and increased housing and office allocations to ensure that the City studied the potential environmental effects of the range of program alternatives that could feasibly be developed while meeting the project objectives and maximizing community benefits.
Why was the EIR recirculated with the Housing Rich Alternative?

The Housing Rich Alternative was identified based on input received from the City Council at its June 4, 2018 session in order to expand the development program to meet all of the objectives identified by the Council, including additional housing opportunities with substantial community benefits. The analysis indicated additional impacts above those identified in the draft EIR circulated in May 2018. To ensure adequate public input and compliance with CEQA, the EIR amendment was prepared and circulated for a 45-day public review period.
Why did the mixed-use alternatives not include 1.2M sf of retail?

The General Plan EIR studied a maximum development program of 625,335 s.f. of commercial, 800 housing units, 2,000,000 s.f. of office and 489 hotel rooms for the Vallco Special Area. The City Council adopted a General Plan Amendment to allow 2,000,000 s.f. of office space and 339 residential units in conjunction with the existing hotel allocation of 339 rooms and a reduced commercial allocation at the Vallco Special Area while allowing the existing mall as an existing use at 1,207,774 s.f. The purpose of indicating the commercial allocation in Table LU-1 was to ensure that the existing mall did not become a legal non-conforming use if the commercial allocation was reduced to below the existing conditions at the site. However, the City Council did not allow the commercial allocation of the mall in addition to the 2,000,000 s.f. of office, 339 hotel rooms and 389 residential units. Therefore, the maximum commercial allocation on the site as a standalone use is 1,207,774 s.f. which was studied in the Occupied/Re-Tenanted mall Alternative in the Vallco Specific Plan EIR. The city’s initial market study indicated that the site could accommodate between 400,000 -600,000 square feet of commercial/retail under current market conditions. Therefore, when developed as a mixed-use site, the alternatives studied in the EIR were developed with a maximum of 600,000 s.f. commercial allocation. The revised project was based on 460,000 s.f. of commercial allocation based on the lower end of the spectrum of economic feasibility, that in order to be able to afford all the community benefits indicated by the City Council including, increased affordable housing, development of a City Hall, development of a Performing Arts Center and increased contributions toward transportation choices (e.g. a fixed route community shuttle.)
Why didn't the EIR analyze every alternative identified by the public?

CEQA requires the EIR to analyze a "reasonable" range of alternatives to a proposed project. Here, the EIR tried to accommodate alternatives suggested by various parties, including buildout under the existing General Plan, increased residential capacity, retail and residential mixed use, and re-tenanting the mall, but it is not feasible to analyze every alternative suggested by the public.

The General Plan currently allows 2,000,000 s.f. of office space and 339 residential units in conjunction with the existing hotel allocation of 339 rooms and a reduced commercial allocation at the Vallco Special Area for future development, while permitting existing commercial uses as legal, conforming uses. The "GP Buildout with Maximum Residential Alternative" in the EIR analyzes this development allocation, plus housing at 35 dwelling units/acre without a development allocation limit.

The EIR also studied the maximum commercial allocation currently permitted in the Vallco Town Center area in the Specific Plan EIR as the Occupied/Re-Tenanted Mall Alternative, plus other alternatives identified by the public and public officials.
When did the Council provide authorization to do a GPA?

Existing General Plan Policy LU-19.1 directs the City to prepare a specific plan to regulate future development on the Vallco site. This direction inherently includes authority for the City to consider any General Plan amendments that are necessary to ensure the General Plan and the proposed Vallco Town Center Specific Plan are consistent, which is required by Government Code section 65454.

With the Vallco Town Center Specific Plan, it was always contemplated that the development allocation and heights in the General Plan would be revised to reflect the adopted Specific Plan. Once public input was gathered through the charrette and outreach process and the direction for the Specific Plan became more clear, it was discussed at the June 4, 2018 study session that the General Plan may have to be amended in connection with adoption of the Specific Plan.
Was the City Council's Study Session June 4, 2018 properly noticed?

On June 4, 2018, the City Council held a study session to review the direction on the specific plan following the public charrette process facilitated by the City and its planning team. The agenda item for the study session said: "Conduct study session regarding Vallco Specific Plan and provide direction to staff," which provides sufficient notice to the general public about the subject matter that was discussed at the study session. No formal action was taken at the meeting, as is evidenced in the meeting minutes and in the recording of the meeting available online at www.cupertino.org/agenda. A presentation was made to the City Council on progress on preparation of the Draft specific plan and the public had the opportunity to comment on the presentation. In addition, comments and general direction were received by the City staff from the City Council after public testimony.
What is the City's process for amending the General Plan?

In 2015, the City Council adopted Resolution 15-078 to establish local procedures for General Plan amendments. The policy adopted by Resolution 15-078 enables the City to initiate General Plan amendments at any time that it deems necessary, such as to ensure consistency between the General Plan and a specific plan. Although Resolution 15-078 establishes specific procedures for private applicants to initiate General Plan amendments, it does not require the same process for City-initiated General Plan amendments.

Here, the City is required to amend the General Plan to authorize development contemplated under the Vallco Town Center Specific Plan. As required by Government Code section 65358, the Planning Commission will consider the proposed General Plan amendments at a duly-noticed hearing on September 4, 2018, and their recommendation will be considered by the City Council when it takes action on the project as a whole, including the General Plan amendments.
What is the state law process for amending the General Plan?

Government Code section 65358 authorizes the City Council to amend the General Plan if it finds that the amendments are in the public interest. State law further requires that: the Planning Commission must consider a General Plan amendment in noticed hearing and make written recommendation to the City Council; City Council must hold a noticed hearing to approve, disapprove or modify the Planning Commission recommendations regarding the General Plan amendment; and the City approve no more than four General Plan amendments per year (though multiple changes can be include in a single amendment).

Aside from the minimum requirements imposed by the Government Code, state law defers to cities to determine process for initiating General Plan amendments. Once established, cities must follow their own General Plan amendment process.
What was included in the Notice of Preparation for the Vallco Town Center Specific Plan EIR?

The Notice of Preparation provided both public agencies and members of the public with notice that the City intended to prepare an EIR to analyze the environmental effects of the project as proposed at the time (as discussed in more detail in Master Response 4, Section 5.1 of the Final EIR).

CEQA does not require the City to adopt a project precisely as it was conceived when it was first proposed. The CEQA process contemplates that a project will evolve over time to reduce impacts or better meet project objectives, so long as the actions the City approves are covered by the analysis in the EIR.

The proposed Specific Plan's environmental effects, including any environmental effects associated with amending the development allocation in the General Plan to authorize the program proposed in the Specific Plan, were fully disclosed in the EIR's analysis of the project and the reasonable range of alternatives included in the EIR. A full discussion of the Revised Project, including necessary General Plan Amendments, is included in Section 2.1 of the Final EIR.

Therefore, the Notice of Preparation is adequate for disclosing potential environmental effects associated with the Vallco Town Center Specific Plan as currently proposed.

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