Liang - EC 9212 Report for Vallco Initiative - which benefits are locked in and who pays for them?

From: Liang C
Date: Sun, May 8, 2016 at 12:37 PM
Subject: EC 9212 Report for Vallco Initiative - which benefits are locked in and who pays for them?
To: City Council <citycouncil@cupertino.org>, City Clerk <CityClerk@cupertino.org>

Dear City Council,

The Vallco flyers or website boast “unprecedented community benefits” to Cupertino. However, in the text of Sand Hill’s Vallco office park initiative (a.k.a. Vallco Town Center Specific Plan Initiative), these benefits are NOT locked in at all as the flyers led us to believe.

Look deep into the Vallco Initiative and you’ll discover the deceptive not-locked-in benefits include, but not limited to, free shuttles, vineyard, amphitheater, pedestrian trails, children’s play areas, refuge for native species of plants and birds, a 1000-seat banquet hall, performance venues, high school innovation center, or a new elementary school.

Below is just a partial list of commonly mentioned benefits that are NOT locked in by the Vallco Initiative, as RevitalizeVallco.com might imply. Sand Hill won't be required to provide any of these benefits.

• "will spearhead": free shuttles.
• "may include": pedestrian trails, a playground, vineyards, orchards, organic gardens, an amphitheater, pavilion buildings, community hub, student union and a nature area. A refuge for native species of plants and birds.
• "may include": a general purpose community hub, an approximately 1,000 seat banquet hall, and a 300-seat outdoor amphitheater.
• "strongly encouraged": 10,000 high school innovation center. 700-student elementary school on 3.5 acre Nan Alan site.

The EC 9212 Report should look into all community benefits promised in Chapter 3 of the Vallco Initiative to identify which ones are legally enforceable and to what extent? Also, which ones are just best-effort items? Which ones will be paid for in full by the project applicant? Which ones will be paid for by future tenants or shared by future property owners in Vallco? Whose responsibility to maintain the public accessible "free" benefits and the safety of these facilities, including security guards? Future property owners of Vallco?

The Vallco Initiative intends to parcelize Vallco, so the many buildings of Vallco will eventually have multiple owners. Despite what Sand Hill promises at open houses, they normally only keep office buildings or hotels and sell off retail and residential buildings. The burden of maintenance will be upon the new owners or eventually the City. What's the cost of maintaining the 30-acre living rooftop and all the features promised, vineyards, playground, banquet hall, etc.?

Page 226 and 227 touches a bit about possible financing options for 30-acre rooftop park, trails, and traffic improvement. One of the funding source is "community facility district":

While a variety of financing techniques are available, Specific Plan
development components will be installed or constructed using private
financing for the great majority of the development costs. Certain
elements of the improvements, however, may use assessments or
community facility district mechanisms. If used to fund improvements, the
assessment or community facility district will only apply to the Plan Area
and only be assessed against the property owner, tenants, or occupants
thereof.

 

If future tenants and property owners do not reach an agreement to fund improvements and maintenance of 30-acre rooftop park, trails, and traffic improvement, does that mean some of the community benefits promised won't get implemented or won't get maintained? Would the future tenants and property owners who will pay for the "community benefits" be able to not allow the public "free" access or charge an entrance fee later? Would the City be forced to pay for the maintenance or even improvement promised by Sand Hill?

EC 9212 Report should look into worse case scenario, as it did for CCSG Initiative, when evaluating the Vallco Initiative.

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The RevitalizeVallco.com website states "In order to eliminate any doubt as to whether Cupertino residents can count on these benefit promises, they have been written into the Vallco Town Center Specific Plan Initiative. This means that upon approval by Cupertino voters, these community benefits will become law and a legal mandate of the redevelopment, an obligation on any future developer." Is is true? Will the community benefits listed on that site become law?

Below is just a partial list of commonly mentioned benefits that are NOT locked in by the Vallco Initiative, as RevitalizeVallco.com might imply. Sand Hill won't be required to provide any of these benefits.

• "will spearhead": free shuttles.
• "may include": pedestrian trails, a playground, vineyards, orchards, organic gardens, an amphitheater, pavilion buildings, community hub, student union and a nature area. A refuge for native species of plants and birds.
• "may include": a general purpose community hub, an approximately 1,000 seat banquet hall, and a 300-seat outdoor amphitheater.
• "strongly encouraged": 10,000 high school innovation center. 700-student elementary school on 3.5 acre Nan Alan site.

In the Vallco Specific Plan, as in the General Plan, only provisions specified with “shall” are potentially enforceable. Any other provisions specified with “will”, “should”, “may”, or “encourage” are optional and not enforceable at all. Any general descriptions in the introduction or executive summary are not binding either.

Listed below are just a few of such deceptive not-locked-in benefits we’ve looked up in the initiative text.

• Sand Hill won’t provide free shuttles as voters were led to believe by Sand Hill’s paid circulators or supporters. Sand Hill will only make an attempt, but free shuttles may or may not be provided.
• [Truth] The Vallco Initiative states “Require that a project applicant spearhead and provide substantial funding for a community effort to provide a free community shuttle, in partnership with the City, VTA, local school districts, property owners, and/or corporate employers. [Section 3.6, p. 3-4, Vallco Initiative]

• Vineyard, amphitheater and other features on green roof “may be included”, but may be not. So, they are not promised or locked in at all.
• [Half-Truth] Sand Hill’s PR article states the green roof provides “vineyards, orchards and organic gardens, amphitheater, children’s play areas and a refuge for native species of plants and birds.”
• [Truth] The Vallco Initiative states “Amenities [of the landscaped roof] may include pedestrian trails, a playground, vineyards, orchards, organic gardens, an amphitheater, pavilion buildings, community hub, student union and a nature area.” [Section 2.4.5, p. 2-35, Vallco Initiative]

• Banquet hall, performance venues and other features on green roof “may be included”, but may be not. So, they are not promised or locked in at all.
• [Half-Truth] Sand Hill’s flyer states “Free space for non-profits and civic organizations, a banquet hall, performance venues, and a community center.”
• [Truth] The Vallco Initiative states “Multiple pavilions will be located in the [rooftop park]. Community benefit uses may include a general purpose community hub, an approximately 1,000 seat banquet hall, and a 300-seat outdoor amphitheater.” [Section 2.4.5, p. 2-35, Vallco Initiative]

• For benefits to schools, the Letter of Intent signed with CUSD and FUHSD are non-binding as the Superintendents admit. Although Sand Hill may provide things “valued at” approximately $40 million, these things may or may not actually worth $40 million in reality.
• [Half-Truth] Sand Hill’s flyer states “Supplementary benefits to schools of approximately $40 million for things like a new elementary school and a high school innovation center;”
• [Truth] The Vallco Initative states “[For FUHSD] the following are strongly encouraged: Construction and 34-year charitable lease of a new 10,000 square foot, turn-key High School science and engineering Innovation Center…[For CUSD] Examples of such enrollment capacity benefits could include: A new 700 student elementary school at the former Nan Allan Elementary School site;..” [Section 3.3, p. 3-3, Vallco Initiative]

On the other hand, Sand Hill will get the following benefits from the Vallco Specific Plan Initiative and these are locked in as law:

The RevitalizeVallco.com website states "In order to eliminate any doubt as to whether Cupertino residents can count on these benefit promises, they have been written into the Vallco Town Center Specific Plan Initiative. This means that upon approval by Cupertino voters, these community benefits will become law and a legal mandate of the redevelopment, an obligation on any future developer." This is not true. The community benefits listed on that site won't become law.

• No need to provide 7-acre of ground-level parkland as required under Quimby Act, due to the promise of "maybe" roof top "park", where visitors can only stay on concrete trails.
• Quimby Act: 3 acres of parkland per 1000 people, which is already lower than the common requirement of 5-acre per 1000 people.)
• A reduction on parking space requirements due to the promise of the "maybe" free shuttles.
• With the approval of just one staff member, the number of housing units can be increased up to the maximum available in the General Plan. Thus, Vallco project could use up all residential allocation with only staff approval.
• No need to follow regulations in Cupertino Municipal Code, since Vallco is designated as its own special zoning area.
• "As envisioned by the General Plan, a zoning district entitled the "Vallco Town Center Specific Plan" district (VTCSP) is established." [Page 6, Vallco Initiative]
• No development agreement is required.
• "Consistent with state law, a Development Agreement between a legal or equitable owner or applicant and the City of Cupertino may also be entered into, but is not a required entitlement." [Section 9.3, Page 9-3, Vallco Initiative]
• Demolition of Vallco Shopping Center can start as soon as the Vallco Initiative is adopted by the Council or approved by the voters.
• "It is the intent of this Specific Plan that demolition, excavation, grading, site work and then construction will commence upon voter approval." [Section 9.6.1, Page 9-9, Vallco Initiative]

Last, but not least, the 2 million square feet of office space allocation will be locked into Vallco Specific Plan. The following impact will become reality, not maybe.

• The massive office park will house 10,000 workers (200 square feet of office space per worker).
• Daily commute traffic for 10,000 workers will be added to Cupertino, which has only about 20,000 households, on top of 14,000 workers going to Apple Campus 2.
• The demand of 6,666 housing units (one housing unit per 1.5 worker according to ABAG) will drive up housing prices and generate more state-mandated requirements to build more housing units, on top of the demand of 9,333 housing units.

REFERENCE:

• Vallco Town Center Specific Plan Initiative text