Background and Setting

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Background and Setting CHAPTER In this chapter. Location and Regional Relevance -0. Competing Centers in the Region -0. Site Conditions and Surrounding Context -06. Access, Transit and Mobility -08.5 Bike and Pedestrian Networks -09.6 Built Form and Public Realm -0.7 Utility Infrastructure -.8 Relationship to Existing Plans and Policies - Public Review Draft August 08 Vallco Town Center Specific Plan -0

Chapter Background and Setting. Location and Regional Relevance In planning for the transformation of the Plan Area into a mixed-use retail, employment and entertainment destination for Cupertino and the region, it is important to consider the competing downtowns and established retail, 'lifestyle' and mixed-use centers in the region. Location and Overview The Plan Area has direct access to Interstate 80 via North Wolfe Road, an arterial that bisects the Plan Area. Stevens Creek Boulevard, one of the city's major arterials, runs along the southern edge. The Plan Area is located in north-east Cupertino in Santa Clara county and is identified in the General Plan as the Vallco Shopping District Special Area. The Plan Area consists of approximately 70 acres, including 58. acres of developable area under the ownership of three different entities: Vallco Property Owner, LLC (50.8 acres), Simeon Properties (5.6 acres) and KCR Properties (. acres). Adjacent areas consist of the North Blaney neighborhood to the west, an established single-family neighborhood with an elementary school and a park. Commercial and office developments east and north of the Plan Area include Cupertino Village and the recently constructed Apple Park campus. To the south of the Plan Area, are several retail and mixed-use developments including Main Street Cupertino and The Marketplace. The Vallco mall is on the parcels owned by Vallco Property Owner, LLC, and the Simeon parcel is vacant. The KCR parcel has a hotel, Hyatt House, under construction in 08. Figure.. Location of the Plan Area within Cupertino. North Wolfe Road Apple Park campus Cupertino Village North Blaney neighborhood Main Street Cupertino 5 The Marketplace I- 80 Plan area (70 ac. approx; 58. ac. developable) Figure.. The Plan Area has direct access to Interstate 80 and at the intersection of two major roads: North Wolfe Road and Stevens Creek Boulevard. -0 Vallco Town Center Specific Plan Vallco Parkway Vallco Property Owner, LLC (50.8 ac.) 5 Stevens Creek Boulevard Simeon Properties (5.6 ac.) KCR Properties (. ac.) Public Review Draft August 08

Chapter Background and Setting Role Within the Region According to the 'Vallco Special Area Real Estate Market Assessment, 08' Cupertino has 60,000 residents, with an average growth rate of 0.6 percent, lower than that of neighboring cities. Cupertino's economy is fueled by the science and technology sector in Silicon Valley, and the city is the headquarters of major global businesses including Apple and Seagate. Other major employers include CRC Health, Mirapath, DURECT and DeAnza Community College. As of 05, Cupertino had 0,000 jobs and a jobs-to-working residents ratio of.59. Cupertino experienced a 6. percent increase in jobs between 006 and 05. However, 9 percent of Cupertino jobs are held by non-residents. The 'Vallco Special Area Real Estate Market Assessment, 08' analyzed existing market conditions, recent performance trends of project types, pipeline projects and other economic data. A summary of the key findings is summarized in Table.. For more information, refer to Section. of this Specific Plan. Figure.. Apple Park, directly north-east of the Vallco site. With approximately 6,000 employees in the Cupertino area, Apple is the City's largest employer. Image source: Uladzik Kryhin, Curbed SF TABLE.. SUMMARY OF REAL ESTATE MARKET ASSESSMENT (08) Office. Cupertino's central location within Silicon Valley and highly educated workforce positions it well for the office sector. Cupertino has added little office over the past decade, during which time the office inventory in Santa Clara county grew by million square feet in response to the booming technology sector. The office market is strong, with a low vacancy rate of two percent, no projects in the pipeline, and lease rates above the county average. Retail. Residential. Lease rates and occupancy Cupertino attracts many rates in Cupertino are high, families for the quality of discounting the Vallco its schools. With spiraling mall. Keeping in mind the housing costs in the Bay competition from established Area, the Vallco site has 'super-regional' malls and tremendous potential for 'lifestyle centers' in the region, housing due to its location, in order for a new retaildominant center to succeed ownership pattern. The size and relatively simple in the current market, it must recently constructed Apple fit into one of two extremes: Park campus and ongoing luxury or value, with the economic growth in Silicon middle market struggling to Valley has further increased compete with online retailers. demand for housing in the region. Lodging. Cupertino's hotel market is strong, with a high weekday occupancy of 90 percent. Recent construction may satisfy lodging needs in the short term, including the 8-room Hyatt House hotel in the Plan Area, under construction in 08. The Plan Area is extremely attractive due to its location and access and could absorb some of the demand for Class A office space from various businesses in the region. The Plan Area has good location and access. However, for it to have a successful major retail component, it would need unique positioning that would complement, not compete, with the region's established centers. Analysis of the housing market suggests that the Plan Area can successfully accommodate a large number of residential units and support denser housing formats than currently offered in Cupertino. Existing hotels mainly cater to business travelers, and the market analysis suggests that well-positioned hotels (for example in the boutique or luxury categories) may be successful in the current market. Public Review Draft August 08 Vallco Town Center Specific Plan -0

Chapter Background and Setting. Competing Centers in the Region Competition in the Region Within Cupertino's approximately 0-mile trade area (a 0-minute commute), competition comes from established centers - four within a mile of the Plan Area, and seven outside Cupertino - as well as from mixed-use downtowns in Mountain View (8 miles away), San Jose, Campbell (9 miles away), Los Gatos (9 miles away) and Palo Alto ( miles away). Interstate 80 US Highway 0 Palo Alto 0 Mountain View 0 miles North San Jose Milpitas The locations of these are shown in Figure., and descriptions of the centers are listed on the facing page. 5 miles Sunnyvale 7 miles mile Cupertino 5 8 9 6 West San Jose State Route 85 Figure.. Competing centers within the Plan Area's trade area -0 Vallco Town Center Specific Plan Public Review Draft August 08

Chapter Background and Setting Competing Centers within Cupertino: Main Street Cupertino 0.5 mile away,000 square feet retail, 60,000 square feet office, 0 residential units, 80 hotel rooms. The Marketplace 0.5 mile away 85,656 square feet retail with 0,000 square feet possible expansion. 6 Cupertino Village 0.7 mile away,00 square feet of retail with 5,000 square feet expansion approved. Homestead Square miles away 75,000 square feet retail. Competing Centers outside Cupertino: 8 5 6 7 8 9 0 Lawrence Square, Santa Clara miles away 00,000 square feet retail Westgate Center, San Jose miles away 65,000 square feet retail Cherry Orchard Center, Sunnyvale miles away 5,000 square feet retail Westfield Valley Fair, Santa Clara.5 miles away,5,765 square feet retail Santana Row, San Jose 5 miles away,700,000 square feet of retail, office, hotel and residential including 65 rental units, 9 condos, 0 restaurants, 76,000+ square feet of Class A office space. Stanford Shopping Center, Palo Alto 5 miles away 98,600 square feet retail Great Mall, Milpitas 6 miles away,66,000 square feet retail 9 0 Figure.5. Local and regional competing centers within Cupertino's 0- mile trade area (a 0-minute commute). Image sources: www.loopnet.com (), www.yelp.com (), www.sbci. com (), www.shopwestgatecenter.com (6), www.sanjose.org (8), www. tripadvisor.com (0). Public Review Draft August 08 Vallco Town Center Specific Plan -05

Chapter Background and Setting. Site Conditions and Surrounding Context Cupertino Village Shopping Center (.5 acre site,,00 square feet retail) The Hamptons residential development Vacant parcel (owned by Simeon Properties) North Blaney neighborhood separated from the Plan Area by a wall, with Perimeter Road and a row of trees on the Plan Area side of the wall 5 0 I-80 North 7 6 5 6 7 8 9 The last remaining businesses in the Plan Area: Dynasty Seafood Restaurant (5), Bowlmor Lanes (6), Cupertino Ice Center (7), Bay Club (8), Cold Stone Creamery, Starbucks and Benihana Local strip malls Perimeter Road North Wolfe Road 8 V 0 Hyatt House, a 8-room, 5-story hotel (under construction in 08) Ownership Vallco Property Owner LLC Simeon Properties 9 KCR Properties 955 Cupertino incorporates as a city Figure.7. The Vallco sign along Interstate 80. Figure.8. The Vallco site in 97. Image source: Niels Marienlund, Flickr Figure.9. Interior of the Vallco Mall in 977. Image source: Niels Marienlund, Flickr 960 Vallco Business and Industrial Park created -06 Vallco Town Center Specific Plan Public Review Draft August 08

Chapter Background and Setting Apple Park, the new Apple campus (office parking structures along Interstate 80) The 80-foot tall Vallco sign, visible from Interstate 80 Main Street Cupertino, a mixed-use development with a plaza; offices and the '9800' residential development Apple offices allco Parkway Major Streets Interstate 80 [8 lanes, 65 mph, 58,000 ADT* (08)] North Wolfe Road [-6 lanes, 5 mph,,900 ADT* (08)] Stevens Creek Boulevard Stevens Creek Boulevard, a major arterial connecting to SR 85, I-80 and Lawrence Expressway; [6 lanes, 5 mph, 5,000 ADT* (08)] Vallco Parkway [6 lanes, 5 mph,,800 ADT* (009)] Miller Avenue Perimeter Road, a -lane private street in the Plan Area 9 Figure.6. Plan Area: existing conditions. Miller Avenue, a collector street * ADT = Average daily vehicles Source: Vallco Special Area Specific Plan, Transportation Impact Analysis (Fehr and Peers, 08) 967 De Anza College established 976 Vallco Fashion Park opens 988 Major mall renovation at Vallco 0-06 Main Street Cupertino opens 07 Apple Park campus completed 97 Stanford Shopping Center opens in Palo Alto 987 Westfield Valley Fair opens in San Jose 00 Santana Row opens in San Jose 05-6 Anchor stores Macy's, Sears, J.C. Penney close 08 AMC closes Public Review Draft August 08 Vallco Town Center Specific Plan -07

Chapter Background and Setting Plan Area al ial cial al velopment ne City Limits Walking Radius Plan Area Boundary Class I Bike Path (Proposed) Class II Bike Lane Class III Bike Route Trees Parks Squares Major Blocks Streets and Circulation Civic Buildings Primary access from signalized intersections on Stevens Creek Boulevard, North Wolfe Road and Vallco Parkway The private Perimeter Road provides peripheral access, and tunnels beneath North Wolfe Road to connect the east and west sides of the site. Commercial ity (-5 DU/Ac.) um Density (5-0 DU/Ac.) ensity (0-0 DU/Ac.) ity (>5 DU/Ac.) esidential ial City Boundary Creeks Major Highways Plan Area. Access, Transit and Mobility Parcels Portal Park Amherst Dr Heart of the City Specific Plan Area Existing Sanitary Sewer to Remain Upgraded Municipal Sanitary Sewer New Municipal Sanitary Sewer New Development Sanitary Sewer Auburn Dr Aerial View Merritt Dr Specific Plan Boundary Parcels Creek N Wolfe Rd N Wolfe Rd 5 min walking distance Vallco Pkwy Perimeter Road Existing Water Service to Remain Proposed Public Water Service Proposed Fire Service Backflow Preventers Municipal Recycled Water for Irrigation Rain Water Cistern Rain Water Collection at Town Square Existing Public Storm Drain to Remain Rain Water Collection at Grade Municipal Recycled Water for Irrigation City Limits Plan Area Boundary Walking Radius Squares Parks and Schools Interstate 80 Building Footprints Calabazas Creek City Limits Walking Radius Plan Area Boundary Highways Arterials Collectors Local Streets Curb Cut Wheaton Dr Plan Area Boundary City Limits Creeks Parks Squares Parcels Building Footprints City Limits Plan Area Boundary Stevens Creek BoulevardWalking Radius Creeks Open Space Parcels Squares Parks and Schools Bus Stop Figure.0. Existing streets 0 600 00 ft Building Footprints and circulation. Signalized Intersection 0 / mile / mile Highways Parks -08 Vallco Town Center Specific Plan Squares Public Arterials Review Draft August 08 Major Collectors Blocks Minor Collectors Miller Ave

Chapter Background and Setting.5 Bike and Pedestrian Networks Bike Infrastructure and Pedestrian Realm N Wolfe Rd Pedestrian and bike activity is low because of inadequate or missing facilities and safety concerns. Planned Class I bike route along I-80. Auburn Dr Existing pedestrian bridge over North Wolfe Road, currently closed. Merritt Dr 5 min walking distance Portal Park Amherst Dr N Wolfe Rd Vallco Pkwy Perimeter Road Interstate 80 Calabazas Creek Wheaton Dr Miller Ave City Limits Plan Area Boundary Stevens Creek Boulevard Walking Radius HE: Housing Element Heart of the City Specific Plan Area A: Agricultural Residential BA: Public Building R: Single-Family Residential City Limits Walking Radius Plan Area Boundary Class I Bike Path (Proposed) Class II Bike Lane Class III Bike Route Figure.. Existing bike and 0 600 00 ft P(CG): General Commercial Squares pedestrian circulation. 0 / mile P(Regional Shopping) / mile R: Multi-Family Residential Blocks Civic Buildings Public Review Draft August 08 Vallco Town Center Specific Plan -09 P: Mixed Use Planned Development MP: Planned Industrial Zone Trees Parks

Chapter Background and Setting.6 Built Form and Public Realm Building Scale and Public Space Existing buildings are large-scale 'block-form' buildings two to three stories in height. Most buildings are accessed from the site interior; most building frontages and entrances do not address the surrounding streets. N Wolfe Rd Public spaces are absent in the current layout, with available open spaces being used for parking and access. Portal Park Amherst Dr Auburn Dr Merritt Dr N Wolfe Rd 5 min walking distance Vallco Pkwy Perimeter Road Interstate 80 Calabazas Creek Wheaton Dr Stevens Creek Boulevard Miller Ave Figure.. Existing sidewalks within and adjacent to the Vallco site. Figure.. Existing built form and public realm analysis. 0 600 00 ft 0 / mile / mile -0 Vallco Town Center Specific Plan Public Review Draft August 08

Chapter Background and Setting.7 Utility Infrastructure TABLE.. EXISTING UTILITY INFRASTRUCTURE AND PROVIDERS See Chapter Five: Infrastructure and Public Facilities for additional information Existing Utilities in the Plan Area Utility/ Service Water Wastewater Provider(s) California Water Service Company Cupertino Sanitation District Vallco Town Center Specific Plan (greywater on-site) Please refer to Chapter Five: Infrastructure and Public Facilities for information about existing utility infrastructure. Electricity Pacific Gas and Electric Gas Pacific Gas and Electric Fire Protection Santa Clara County Fire Department Police Protection Santa Clara County Sheriff's Office, West Valley Division Schools Cupertino Union School District Fremont Union High School District Library Santa Clara County Library District Solid Waste Disposal Recology South Bay Public Review Draft August 08 Vallco Town Center Specific Plan -

Chapter Background and Setting.8 Relationship to Existing Plans and Policies This Specific Plan has been prepared for the systematic implementation of the General Plan within the Vallco Special Area. The following discussion identifies key General Plan policies related to the Plan Area. Cupertino General Plan The Cupertino General Plan ('Community Vision 05-00') provides vision and policy direction through the year 00. This state-mandated document provides the vision for Cupertino's growth and reinvestment by setting policy direction in a number of areas including land use, mobility, housing, open space, infrastructure, public health and safety, and sustainability. The General Plan is organized into 'Planning Areas': nine 'Special Areas' and twelve 'Neighborhoods'. The Plan Area, 'Vallco Special Area', is one of those nine Special Areas. Policy LU-9. states that a Specific Plan is to be created for the site based on specified strategies. The General Plan identifies a maximum of 5 dwelling units per acre in the Plan Area and it authorizes eligible projects in the Vallco Special Area to apply for a "community benefits density bonus" to increase the Plan Area's development potential (Figure LU- 'Community Form Diagram', page LU-7). In compliance with the General Plan, building heights and setbacks are determined by this Specific Plan. The General Plan identifies a citywide available allocation of,57 dwelling units (calculated at the base density) through Zoning The Plan Area is zoned as 'Town Center Zone'. Allowed Uses Commercial, office, lodging, civic, cultural and residential. Deodara Dr Drake Dr Auburn Dr Merritt Dr Interstate 80 General Plan Guiding Principles (Refer page - and -5 of the Cupertino General Plan) Develop Cohesive Neighborhoods Improve Public Health and Safety Improve Connectivity Housing Priority The General Plan identifies the entire Plan Area as a housing priority site (Site A in the Housing Element). McLaren Pl N Portal Ave Colby Ave Denison Ave Norwich Ave Amherst Dr Perimeter Rd HE HE Vallco Special Area Specific Plan N Wolfe Rd Vallco Pkwy Perimeter Rd Enhance Mobility Ensure a Balanced Community Support Vibrant and Mixed-Use Businesses Ensure Attractive Community Design Embrace Diversity Support Education Preserve the Environment Figure.. Existing zoning and allowed uses. ve e Stevens Creek Blvd ve Ensure Fiscal Self Reliance Ensure a Responsive Government - Vallco Town Center Specific Plan Public Review Draft August 08

Chapter Background and Setting 00, or,6 dwelling units through 00 if the "community benefits density bonus" is approved. General Plan Strategy LU-.. (Planning Area Allocations) and Table LU- identify the following development allocations to the Plan Area: Minimum 600,000 square feet of retail 750,000 square feet of office 9 hotel rooms, and,0 dwellings Table LU- also authorizes 00,000 square feet of retail, 85,000 square feet of civic/ cultural facilities,,750,000 square feet of office, 9 hotel rooms, and,9 dwelling units if the "community benefits density bonus" is approved. Cupertino Municipal Code The Cupertino Municipal Code (CMC) is the primary document that implements the General Plan. The CMC's zoning code provides the regulations for land uses along with development regulations and procedures for all land within the city. The Plan Area has been zoned 'Town Center Zone' concurrent with the adoption of this Specific Plan. This zoning designation establishes Chapter Six: Development Standards of this Specific Plan, as the standards for use and development within the Plan Area. If there are any inconsistencies or conflicts between the requirements of this Specific Plan and the CMC or other applicable regulation, policy or procedure, the provisions of this Specific Plan take precedence, control and govern the Plan Area. Other Relevant Plans City of Cupertino Pedestrian Transportation Plan First adopted in 00, this plan was updated in 08. This plan is designed to improve pedestrian and bicycling conditions through the City, and its vision is structured by three main goals: safety, access, and connectivity that look to enhance quality of life for all community members and visitors. This Plan shows the location and intent of shared use paths within and adjacent to the Plan Area. Cupertino Bicycle Transportation Plan This plan is designed to encourage bicycling as a safe, practical and healthy alternative to the use of a motor vehicle through identifying priorities for the next decade based on community direction. The plan's direction for the Plan Area is to install buffer zones along existing bike lanes. Other Regional Agencies Metropolitan Transportation Commission (MTC). The MTC is the transportation planning, coordinating and financing agency for the nine-county San Francisco Bay area. MTC is responsible for regularly updating the Regional Transportation Plan, a comprehensive blueprint for mass transit, highway, freight, bicycle, and pedestrian facilities. Caltrans. The Plan Area is located in Caltrans District. Caltrans is responsible for the design, construction, maintenance, and operation of the California State Highway System as well as the portion of the Interstate Highway System with the State's boundaries. Valley Transit Authority (VTA). VTA is Santa Clara County's congestion management agency, responsible for the design and construction of specific highway and pedestrian and bicycle improvements. The VTA has proposed the Stevens Creek Bus Rapid Transit (BRT) project, which would provide service along 8.5 miles from DeAnza College to the Transit Mall in downtown San Jose. Public Review Draft August 08 Vallco Town Center Specific Plan -

- Vallco Town Center Specific Plan Public Review Draft August 08