Vallco Town Center Specific Plan

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18038-Opticos_Cupertino_Persp02-2 Visualization of general scale of buildings along Perimeter Road facing west and pedestrian view looking north.

For information on construction activity at the Vallco Town Center Area, please visit FAQs/Permit Activity – Vallco Town Center

The Vallco Town Center Specific Plan can be viewed here:

Chapter 1 Purpose and Intent
Chapter 2 Background and Setting
Chapter 3 Vision
Chapter 4 Mobility
Chapter 5 Infrastructure and Public Facilities
Chapter 6 Development Standards
Chapter 7 Administration, Implementation and Financing

Understanding the review process options for Vallco's future:

What happens if there is or isn't a referendum on the Specific Plan?

What are the "process paths" for the Specific Plan and the SB 35 project?

How are they different in terms of city review? This flowchart, updated on October 26th, helps demonstrate the outcomes based on possible decisions and actions.

How does the Vallco Town Center Specific Plan (our community's plan) compare to the SB 35 (State Law) project?

Download Vallco Fast Facts to compare the concepts from the Specific Plan to the SB 35 proposal, two different options for Vallco's future or scroll down this page to view the comparisons.

A visualization of the Specific Plan:

An aerial view of the SB 35 approved application:
Aerial View SB 35

Facts at a glance: Comparing the two options for Vallco Mall site
	Vallco Town Center Specific Plan (Community’s Plan)	SB 35 Project (State Law ministerial project)
Community’s plan	Yes - City’s adopted specific plan	No - State Law ministerial project
Development allocation	Entire Specific Plan Area (Tier 2)	Sand Hill portion only
Housing	2923 units (2,668 units on Sand Hill portion)	2,402 units
Office	1,750,000 sq.ft.	1,810,000 sq.ft.
Retail/Commercial	400,000 sq.ft.	400,000 sq.ft.
Hotel	191 rooms	n/a
Height limits		Up to 240 feet (22 stories)
West of N. Wolfe Road (see Specific Plan for details)	Heights range from 45 feet (3 stories) from the western side to 120 feet (10 stories) at center of site and are reduced to 60 feet (5 stories) along Stevens Creek Boulevard and 75 to 95 feet (6 to 8 stories) along N. Wolfe Road
East of N. Wolfe Road (see Specific Plan for details)	Heights range from 75 feet (6 to 7 stories) along Vallco Parkway and 75 to 95 feet (6 to 8 stories) along N. Wolfe Road and increase to 120 to 150 feet (10 to 13 stories) toward the east.
Parks	Parks requirement per the City’s municipal code Minimum park sizes per specific plan Minimum of 6 acres ground level, 60% landscape Remaining may be ground level, on pedestrian bridge across Wolfe or rooftop/podium.	22 acres rooftop park 4 acres at ground level
Environmental mitigations	Yes. Includes traffic mitigations.	None required per State Law.
Community benefits	Yes	No
Moderate income units	133	None
Low income units	205	840 (required by State Law)
Very low income units	156	361 (required by State Law)
Extremely low income units (developmentally disabled)	40	None
Senior units	80 units	None
CUSD/FUHSD school	CUSD: $14.25M in addition to school impact fees FUHSD: 25,000 sq.ft. space or $9.5M	No
Transportation	$11M for Wolfe Road/I-280/ Bike/Ped Trail $1M community shuttle pilot one year; $750K subsequent 9 years	No
City Hall	40,000 sq.ft. (exterior shell at civic center site)	No
Performing Arts Center	600-seat main stage, 200-seat second stage center (exterior shell at project site)	No

More details about community benefits

Affordable Housing:
Vallco has agreed that 20% of the residential units would be provided as affordable housing at the following percentages: 15% at extremely low (40 units, very low (156 units) and low income (205 units) levels and 5% at moderate income level (133 units).

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 $9,500,000 pursuant to a separate agreement.

Transportation:
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.

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.

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.

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.

Project Archive - Past meetings/documents

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

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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.
How can the city grant the special city density bonus in the Vallco Specific Plan? Does the entire Vallco project have to be BMR?

The State Density Bonus Law permits the City to grant density bonuses greater than 35% for developments that qualify for a density bonus. Currently, the City’s Density Bonus Ordinance authorizes ONE way for the City to grant a density bonus larger than 35%: for housing development projects that are 100% affordable to lower income households. In connection with the Vallco Town Center Specific Plan, the City is approving a SECOND density bonus option; this new “community benefits density bonus” will authorize density bonuses greater than 35% for projects in the Vallco Town Center zone that are approved pursuant to the Specific Plan’s standards, including providing affordability beyond the standard 15% required of all projects and significant additional community benefits that are memorialized in a development agreement. Accordingly, should council approve the Ordinances introduced in connection with the Vallco Town Center Specific Plan, the Cupertino Municipal Code will include two options for projects seeking more than a 35% density bonus.

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