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  • County Deems Lehigh Permanente Quarry Application Incomplete

    County Deems Lehigh Permanente Quarry Application Incomplete

    On December 7, Santa Clara County’s Planning and Development Office deemed Lehigh’s Reclamation Plan application incomplete. The 31-page letter listed a number of areas that require clarification such as, appropriately defining the land areas to be reclaimed, fish and wildlife protection, water quality concerns, new truck routes, and additional truck traffic.

    What is Reclamation?

    The purpose of the Reclamation Plan is to describe how the mined land will be repaired for a secondary beneficial use, such as open space. Reclamation does not restore land to its pre-mining state. The biggest issue facing residents is that Lehigh intends to convert its Permanente Quarry into a for-profit landfill that would take in 31.2 million cubic yards of off-site clean fill, which translates to an increase in truck traffic. This is a significant change from the approved 2012 Reclamation Plan that would fill the quarry with onsite mining-waste to stabilize the crumbling ridgeline between the quarry and Rancho San Antonio Open Space Preserve.

    Source: https://stgenpln.blob.core.windows.net/document/PLN19_0106_Permanente_Quarry_PreApplication_Meeting_Packet.pdf

    Lehigh History

    From 1939 through 2020, Lehigh’s Permanente Quarry mined for limestone to feed its onsite cement plant that was fueled by petroleum coke, making the site one of the Bay Area’s biggest air polluters. The site has an egregious record of violations across numerous regulatory agencies.

    In early 2020, Lehigh stopped blasting for limestone and manufacturing cement. Since then, residents have noticed truck traffic from two new businesses there, aggregate processing and cement distribution. In 2021, with the notable exception of the Lehigh Permanente Quarry, HeidelbergCement AG of Germany sold its west coast operations to Martin Marietta of North Carolina for $2.3 billion. In 2022, Cupertino residents were blinded by bright movie lights when Lehigh leased its site for filming a Sci-Fi movie. 

    Next Steps

    Lehigh has 180 days to respond to the issues flagged by County Planning, County Road and Airports, County Geologist,  U.S. Fish and Wildlife, Santa Clara Valley Water District, and the Midpeninsula Regional Open Space District. There were no comments attached to the County’s letter from the San Francisco Bay Regional Water Quality Control Board. Additionally, the County and Lehigh will schedule a required community meeting prior to deeming the application as complete.

    References

    County of Santa Clara Department of Planning and Development letter to Lehigh regarding Major Reclamation Plan Amendment Application. https://stgenpln.blob.core.windows.net/document/PLN23_100_Letter_Incomplete.pdf. Accessed December 18, 2023.
    https://www.reuters.com/business/finance/martin-marietta-buy-heidelbergcements-western-us-assets-23-bln-2021-05-24/

  • Small Business Spotlight: Horizon Bakery Opens in Cupertino

    Small Business Spotlight: Horizon Bakery Opens in Cupertino

    A new custom cake shop, Horizon Bakery, has opened in Cupertino. This family-owned establishment boasts a wide portfolio of creations, ranging from intricately hand-painted cakes to elaborate floral and figurine toppings.

    Horizon Bakery specifically chose Cupertino as the home for their new shop because they believe they can be successful here. In fact, its owners have poured an immense amount of effort into making the space their new home. They spent one year remodeling the location, demolishing and then rebuilding the entire interior, which was formerly Egghead Sandwiches.

    Today, the shop’s owner works with a small team to create the cakes. They also offer smaller desserts (photos below). Horizon Bakery is located on 19929 Stevens Creek Boulevard. It is open from 12 PM – 7 PM, Tuesday – Sunday. Visit horizonbakery.com to learn more.

    horizon bakery
    horizon bakery
    horizon bakery

  • December 2023 Newsletter: New Plans for Former Vallco Site, Will Cupertino Raise Sales Taxes? — and more

    We thank you for following along this year as we shed light on many critical issues. From changes impacting the face of Cupertino to loss of public resources, we hope to spark dialogue amongst residents who rightfully expect the utmost of their city governance. In this issue:

    • Is Cupertino’s Single-Family Housing at Risk?
    • Will Sales Taxes Go Up in Cupertino?
    • New Plans Revealed for Former Vallco Site
    • County Deems Lehigh Quarry Application “Incomplete”
    • Small Business Spotlight: New Custom Cake Shop Opens in Cupertino

    Are Cupertino’s Single Family Homes At Risk?

    On November 30, 2023 Cupertino submitted its “Second Draft” (3rd submittal) of its Housing Element (HE) to the California Department of Housing & Community Development (HCD) for approval. Residents should be aware of two decisions that will impact homes across Cupertino if approved:

    1. Any Single-Family Home on a corner lot could turn into an apartment.
    2. Any Single-Family Home behind or around a shopping center on specific roads could turn into apartments.

    Example of Cupertino neighborhoods with single-family homes adjacent to retail

    These potential changes create uncertainty for current and prospective homeowners, and could drastically alter our neighborhoods. Cupertino has identified and is prepared to re-zone far more HE sites than is required to meet its Regional Housing Needs Allocation (RHNA) obligation.

    Reach out to your representatives now to provide input. The Cupertino City Council has the final say. Here is their contact information:

    [email protected]
    [email protected]
    [email protected]

    Individual City Council member emails can be found here.

    READ MORE

    Will Sales Taxes Go Up in Cupertino?

    On December 5, 2023, City Council voted to explore raising Cupertino sales taxes by 0.25% (to a total of 9.375%).

    City Staff Pushes for Sales Tax Increase

    At the December 5, City Council Study Session, staff asked Council for direction on four revenue-raising options. They recommended the Transaction and Use Tax (TUT), but also considered raising the Hotel Tax, Parcel Tax, and Business Operations Tax.

    Next Steps

    In January and February, the City will poll a subset of voters for their opinions on a higher sales tax. A majority vote on the November 2024 ballot is needed to raise sales taxes by 0.25%.

    READ MORE

    New Plans Revealed for Former Vallco Site

    On December 5, 2023, the property owner of the former Vallco shopping mall (N. Wolfe Rd. and Stevens Creek Blvd.) submitted a new development plan to the City of Cupertino. The plan, called “The Rise,” replaces the old site with housing, offices, shopping areas, and open spaces, similar to previous plans that have been submitted over the last decade.

    A Revised Design with a New Architect

    The developer recently switched to a different architectural design firm, Kohn Pedersen Fox (KPF). Via the developer’s announcement, “KPF is a world-renowned design firm known for their innovative and community-driven approach to urban design.”

    Will Cupertino Agree to the Modification?

    Despite significant changes from the prior plan, the developer claims that this project is only a modification of its SB35 application. If the City agrees that the modifications are minor, then the new buildings can use outdated 2016 building codes, even if the development is built years from now. This may make the new buildings less energy-efficient and less environmentally friendly.

    Next Steps

    The City has 60 days to respond to the developer as to whether the project is compliant with SB35 or it can be considered a modification to a previously-approved SB35 project. Since the developer intends to subdivide the project and build it in phases, it is unknown when it will be completed, if ever.

    READ MORE

    County Deems Lehigh Permanente Quarry Application Incomplete

    On December 7, Santa Clara County’s Planning and Development Office deemed Lehigh’s Reclamation Plan application incomplete. The 31-page letter listed a number of areas that require clarification such as, appropriately defining the land areas to be reclaimed, fish and wildlife protection, water quality concerns, new truck routes, and additional truck traffic.

    READ MORE

    Small Business Spotlight: New Cake Shop Opens in Cupertino

    A new custom cake shop, Horizon Bakery, has opened in Cupertino. This family-owned establishment boasts a wide portfolio of creations, ranging from intricately hand-painted cakes to elaborate floral and figurine toppings.

    horizon bakery

    Horizon Bakery’s owners have poured an immense amount of effort into making the space their new home. They spent one year remodeling the location, demolishing and then rebuilding the entire interior.

    READ MORE

    Wishing you a very happy holiday and new year,

    The Cupertino Facts Team

  • Cupertino Shops List

    In an effort to support retail in Cupertino, below is a list of Cupertino shops.

    Please note: this list is as of December 2023. Due to the changing nature of businesses, the shops on this list are subject to change. We will remove outdated entries and/or add new listings as often as possible. We are constantly updating this list as businesses may change. We do not earn any income from this list (or from Cupertino Facts as a whole!).

    Know of a retail shop that isn’t on this list? Please feel free to contact us.

    Categories:


    Clothing & Apparel

    California T-Shirt Company
    10201 Imperial Ave
    Cupertino, CA 95014

    TJ Maxx
    20730 Stevens Creek Blvd
    Cupertino, CA 95014

    Keating Capezio
    19449 Stevens Blvd, Ste 110
    Cupertino, CA 95014

    Target
    20745 Stevens Creek Blvd
    Cupertino, CA 95014

    Ross Dress for Less
    20650 Homestead Rd
    Cupertino, CA 95014


    Crafts & Party Supplies

    JOANN Fabric and Crafts
    19765 Stevens Creek Blvd
    Cupertino , CA 95014

    Michaels
    20640 Homestead Rd
    Cupertino, CA 95014-0451

    Party City
    20740 Stevens Creek Boulevard, Store# 810
    Cupertino, CA 95014


    Farmers’ Markets / Outdoor Markets

    West Coast Farmers Market
    21275 Stevens Creek Blvd
    Cupertino, CA 95014

    Creekside Farmers Market
    10455 Miller Ave
    Cupertino, CA 95014

    De Anza Flea Market
    21250 Stevens Creek Blvd
    De Anza College Parking Lot
    Cupertino, CA 95014


    Grocery

    Cupertino Market
    19725 Stevens Creek Blvd
    Cupertino, CA 95014

    Heartland
    10051 E Estates Dr
    Cupertino, CA 95014

    Oakmont Produce Market
    19944 Homestead Rd
    Cupertino, CA 95014

    Marina Food
    10122 Bandley Dr
    Cupertino, CA 95014

    Marukai Market
    19750 Stevens Creek Blvd
    Cupertino, CA 95015

    Safeway
    20620 W Homestead Rd
    Cupertino, CA 95014

    Super Cupertino
    7335 Bollinger Rd
    Cupertino, CA 95014

    Whole Foods Market
    20955 Stevens Creek Blvd
    Cupertino, CA 95014

    99 Ranch Market
    10983 North Wolfe Rd
    Cupertino, CA 95014
    and
    10425 S De Anza Blvd
    Cupertino, CA 95014


    Home/Furniture

    CORT Furniture Outlet
    19885 Stevens Creek Boulevard
    Cupertino, CA 95014

    Daiso
    19750 Stevens Creek Blvd
    Cupertino CA 95014

    Home Goods
    20730 Stevens Creek Blvd.
    Cupertino, CA 95014

    Mattress Firm
    510 Stevens Creek Boulevard
    Cupertino, CA 95014


    Jewelry

    Shane Co.
    19900 Stevens Creek Blvd
    Cupertino, CA 95014

    Vardy’s Jewelers
    10227 So De Anza Blvd
    Cupertino, CA 95014

    Golden Gems
    19658 Stevens Creek Blvd
    Cupertino, CA 95014


    Shoes

    Footwear etc.
    20690 Stevens Creek Blvd
    Cupertino, CA 95014

    Howard’s Shoes For Children
    19449 Stevens Creek Blvd,Ste 100
    Cupertino, CA 95014


    Sporting Goods

    Racket Supply
    10570 S De Anza Blvd
    Cupertino, CA 95014

    Trail Head Cyclery
    20301 Stevens Creek Blvd
    Cupertino, CA 95014

    Off the Sheet Pro Shop
    20990 Homestead Rd
    Cupertino, CA 95014

    Top Fitness Cupertino
    20610 Stevens Creek Blvd
    Cupertino, CA 95014


    Technology

    Apple Park Visitor Center
    10600 North Tantau Avenue
    Cupertino, CA 95014

    AT&T
    19479 Stevens Creek Blvd., Ste 100
    Cupertino, CA 95014

    T-Mobile
    20803 Stevens Creek Blvd., Ste. 105
    Cupertino, CA 95014

    Verizon
    20735 Stevens Creek Blvd, Ste E,
    Cupertino, CA, 95014


    Other Retail

    Chung Hsin Chinese Herbs
    10925 N Wolfe Rd
    Cupertino, CA 95014

    Staples
    20830 Stevens Creek Blvd
    Cupertino, CA 95014

    Ulta Beauty
    20580 Homestead Road
    Cupertino, CA 95014

  • November 2023 Newsletter: July 4th fireworks defunded, Cupertino’s first Builder’s Remedy apartment project, and more

    What’s in this issue:

    • Cupertino Cancels July 4th Fireworks
    • Cupertino Receives First Builder’s Remedy Development Application
    • Will High Capacity Transit Come to Cupertino?
    • Apply for Cupertino Commissions

    Cupertino Cancels July 4th Fireworks

    While many residents were preparing for their Thanksgiving holiday, the Cupertino City Council decided to cut its July 4th fireworks display.

    There was no community input taken in staff’s recommendation to axe the popular fireworks show, enjoyed by thousands of residents for decades. The suggestion to defund the celebrations was hidden as a one-liner within agenda item #11 for the November 21, 2023 City Council meeting.

    Differing opinions

    Councilmember Kitty Moore cast the lone dissenting vote against defunding the fireworks. “I don’t feel this decision has the input from the public,” Moore stated. “It’s being done at a time when the public isn’t here to comment on it, because it’s buried on this agenda.”

    Moore said that funding can be made available to support the fireworks. “We have 14 positions which aren’t filled, at an average of $180,000 per position,” said Moore. “We do have money available if we are looking into the budget, in areas where there has actually been leftover year over year.”

    On the other hand, Mayor Wei voted to get rid of the July 4th fireworks. The reason Wei gave was that there are worse budget cuts planned in January 2024, so it would be “responsible” to start cutting now.

    A Tale of Two Cities

    The reason cited for eliminating the July 4th fireworks was Cupertino’s $15M structural deficit. However, Cupertino’s handling of this deficit has been inconsistent. On November 7th, Council approved cost of living (COLA) raises for both non-unionized and specific unionized employees, ranging from 3-5%, and added two new fully paid holidays. On October 17th, Council voted to pursue a brand new City Hall building, rather than a renovation of existing buildings for a fraction of the cost.

    Meanwhile, the City has chosen to cut community services. Eliminating the fireworks in 2024 yields a one-time savings of $140K. The city also cut its $30K funding to Shakespeare in the Park, and a $10K teen boba event.

    What’s in Store

    Council voted to retain July 4th morning activities at a reduced scale compared to prior years, at a cost of $7K. Councilmember Liang Chao asked for the Parks & Recreation Commission to explore creative ways to celebrate July 4th without fireworks, and to fund future July 4th events.

    READ MORE

    Cupertino Receives First Builder’s Remedy Development Application

    Cupertino has been vulnerable to the “Builder’s Remedy” since it missed its January 2023 deadline for an approved Housing Element from the California Department of Housing and Community Development (HCD). The “Builder’s Remedy” is a State law that allows developers to bypass local zoning laws for projects that offer affordable housing.

    Builder’s Remedy Reaches Cupertino

    Menlo Park developer Acclaim Properties has submitted Cupertino’s first Builder’s Remedy application: a 141 home apartment complex on 1.63 acres, at the corner of Stevens Creek Blvd and N. Blaney Ave. The site is zoned for commercial use, with a maximum height of 45 feet. However, the developer’s application uses the “Builder’s Remedy” to circumvent these rules, raising its height to 70 feet, and leaving no space for commercial businesses. If this project proceeds, the development will force businesses like Vidyarambh Preschool and Daycare Center and Be Natural Music to vacate the site.

    Source: Builder’s Remedy Project Proposals, Cupertino.org

    Mayor Wei appears either unaware of or indifferent to existing height limits. Via the Mercury News, Wei stated that “five-stories on one of the city’s busiest thoroughfares isn’t unusual,” even though there currently are no other buildings of that height nearby. Wei also said that “there will be more in the next eight years.”

    A Loss of Local Control

    This project, like Vallco using the SB 35 law to tear down our mall, or Westport using the Density Bonus law and decreasing the Oaks Shopping Center area, lowers Cupertino’s retail base at a time when the CDTFA audit is expected to reduce our sales tax revenue by $30M annually, plus back payments.

    Cupertino faces difficult fiscal decisions ahead. The lack of local control in retaining retail can have a dire effect on healthy economic planning. Most importantly, these laws will not help lower housing costs. It is unknown how many more “Builder’s Remedy” projects will be proposed while we wait for the City to get an approved Housing Element.

    READ MORE

    Is High-Capacity Transit Coming to Cupertino?

    Via the Stevens Creek Corridor Vision website: Santa Clara, San Jose, Cupertino, Santa Clara County, and the Valley Transportation Authority (VTA) are conducting a two-year transportation study for the Stevens Creek Boulevard/West San Carlos corridor. Their goal is to create a vision including multi-modal transportation improvements and possible high-capacity transit connecting Diridon Station in San Jose to Santa Clara and the De Anza College/Highway 85 area in Cupertino.

    Share your feedback by filling out the survey on StevensCreekVision.com, or attend upcoming events:

    Community Advisory Group Meeting #2 (In-Person)
    Santa Clara Central Park Library
    2635 Homestead Rd, Santa Clara, CA
    Thursday, December 7, 2023
    5 – 6:30 p.m.

    Apply for Cupertino Commissions

    The City of Cupertino is now recruiting for its commissions. Those interested in getting more involved in City affairs may visit the Commissions Vacancies page to learn about open positions, and the Commissions page for instructions on how to apply.

    Here is a list of vacancies as of 11/28/30:

    • Audit Committee: 3 available seats
    • Housing Commission: 2 available seats
    • Parks & Recreation Commission: 2 available seats
    • Public Safety Commission: 3 available seats
    • Sustainability Commission: 3 available seats
    • Technology, Information, and Communications Commission: 2 available seats
  • Cupertino Cancels July 4th Fireworks

    Cupertino Cancels July 4th Fireworks

    While many residents were preparing for their Thanksgiving holiday, the Cupertino City Council decided to axe its July 4th fireworks display. There was no community input taken to inform the City staff recommendation to eliminate the popular fireworks show enjoyed by thousands of residents for decades. The suggestion to eliminate the celebrations was also relatively hidden from the public, as a one-liner within agenda item #11 for the November 21, 2023 City Council meeting, “Accept the City Manager’s First Quarter Financial Report for Fiscal Year 2023-24.” 

    Differing opinions

    Councilmember Kitty Moore cast the lone dissenting vote against defunding July 4th fireworks. “I don’t feel this decision has the input from the public,” Moore said during the meeting. “I think this is being rushed. It’s being done at a time when the public isn’t here to comment on it, because it’s buried on this agenda.”

    Moore also stated that funding can be made available to support the annual fireworks. “We have 14 positions which aren’t filled, at an average of $180,000 per position,” said Moore. “We do have money available if we are looking into the budget, in areas where there has actually been leftover year over year.”

    On the other hand, Mayor Wei voted to get rid of the July 4th fireworks. The reason Wei gave was that there are worse budget cuts planned in January 2024, so it would be “responsible” to start cutting now. To note: the January service reductions referred to by staff and Council have not deterred the City from approving millions in new expenditures during its most recent October and November 2023 Council meetings. 

    A Tale of Two Cities

    The reason cited for eliminating the July 4th fireworks was Cupertino’s $15M structural deficit. However, Cupertino’s handling of this deficit has been inconsistent. The largest component of the City’s expenses is employee compensation and benefits (via the May 2023 budget presentation). But Cupertino has not had any meaningful reductions in force since its budget deficit was announced. In fact, on November 7th, Council approved cost of living (COLA) raises for both non-unionized and specific unionized employees, ranging from 3-5% and added two new fully paid holidays.

    Impending January budget cuts have not deterred the council majority from approving millions in new expenditures during its most recent October and November 2023 Council meetings. On October 17th, Council voted to partner with developers to build a brand new City Hall building, rather than pursue a renovation of existing buildings for a fraction of the cost. This included a consultant contract of up to $170K1.

    Looking to the Future

    Meanwhile, the City has chosen to cut community services. Eliminating the fireworks in 2024 would provide a one-time savings of $140K. To note, fireworks themselves only cost $45k, but $95k more (breakdown undisclosed) covers staff overtime, sheriff time, and liability insurance. Last year, staff was already proposing cutting fireworks along with the $30K Shakespeare in the Park performances. Neither will be funded for 2024.

    Council voted to retain July 4 morning activities at a reduced scale as compared with prior years at a cost of $7000. Councilmember Liang Chao asked for the Parks & Recreation Commission to explore creative ways to hold July 4th celebrations without fireworks, and to fund future July 4th events. The City has cut July 4th fireworks in the past, so it is possible that they may be restored in future years.

    Footnotes

    1. Master Agreement #2023-031, City of Cupertino, available in the October 17, 2023 Written Communications on Page 7: https://cupertino.legistar.com/View.ashx?M=E2&ID=1053225&GUID=32C570ED-67B8-43BB-8BE8-7F0A82467799
  • Cupertino Receives First Builder’s Remedy Project Application

    Cupertino Receives First Builder’s Remedy Project Application

    Cupertino has been vulnerable to the “Builder’s Remedy” since it missed its January 2023 deadline for an approved Housing Element from the California Department of Housing and Community Development (HCD).  The “Builder’s Remedy” is a State law that allows developers to bypass local zoning laws for projects that offer affordable housing.

    Menlo Park developer Acclaim Properties has submitted plans for a 70-foot-tall, 141 home, apartment complex on 1.63 acres, at the corner of Stevens Creek Blvd and N. Blaney Avenue.1 If the project proceeds, the development will force businesses like Vidyarambh Preschool and Daycare Center and Be Natural Music to vacate the site. The new complex would loom over adjacent single-family homes. 

    The site is zoned for commercial use with a maximum height of 45 feet. However, the developer’s application uses the “Builder’s Remedy” to circumvent these zoning rules, raising its building height to 70 feet and not providing space for commercial businesses that bring in sales-tax revenue. The “Builder’s Remedy” is further explained in the article in Cal Matters, “‘Godzilla next door’: How California developers gained new leverage to build more homes.”2 Below are our City’s specific requirements for this area.3 

    Heart of the City Specific Plan Central Stevens Creek Boulevard
    – Primary Use: Commercial/Commercial Office
    – Secondary Use: Office above ground level
    – Supporting Use: Residential/Residential Mixed Uses

    (SOURCE – https://cupertino.granicus.com/MetaViewer.php?view_id=18&clip_id=1251&meta_id=67811)

    Mayor Wei appears either unaware of or indifferent to existing height limits. Via the Mercury News, Wei stated that “five-stories on one of the city’s busiest thoroughfares isn’t unusual,” even though there currently are no other buildings of that height nearby. Wei also said that “there will be more in the next eight years.”4

    Lack of Visibility into Cupertino Housing Element

    Cupertino’s Housing Element was due on January 31, 2023. Updates, public participation, and oversight have been curtailed since the new City Council took over in 2023. Sadly, the Housing Commission (which met only 4 times this year) and Planning Commission (which met only 6 times this year) were denied the opportunity to provide any input on policies and procedures in this Housing Element. By comparison, these commissions met three times as often in 2022.

    A Need for Increased & Diversified Revenue

    Cupertino must diversify its income sources due to an anticipated 73% decline in sales tax income (from the State’s expected termination of a lucrative sales tax sharing agreement with Apple).5 While it is nearly impossible to recoup this revenue loss, the City can grow sales tax revenue by increasing retail. One percent of sales tax ($1 out of every $100 spent on taxable goods) purchased in Cupertino goes straight back to the City. 

    This project, like Vallco using the SB 35 law to tear down our mall, or Westport using the Density Bonus law and decreasing the Oaks Shopping Center area, lowers Cupertino’s retail base at a time when the CDTFA audit is expected to reduce our sales tax revenue by $30M annually, plus back payments.

    Cupertino has already allowed commercial properties to be rezoned for residential. One example is the new development on Stevens Creek and Foothill (22690 Stevens Creek Blvd). Others are identified in the Housing Element. On the other end, one planned project where Marina Foods is currently located (10145 N De Anza Blvd) retains nearly all of its retail space, while adding 206 condominiums.

    Real estate taxes are another large source of income for Cupertino. But because commercial property owners often use legal loopholes to transfer property ownership without triggering property tax reassessment, taxes on apartment developments will likely not rise through reassessment during anyone’s lifetime. Projects with all-retail or ground-level retail with for-sale housing would raise more sales- and real-estate taxes than the proposed project.

    Our city faces difficult fiscal decisions ahead. But the lack of local control to be able to retain retail is having a dire effect with regards to healthy economic planning. Most importantly, these laws will not help lower housing costs. It is unknown many more “Builder’s Remedy” projects will be proposed while we wait for Cupertino to get an approved Housing Element.

    References:

    Photo credit: City of Cupertino Builder’s Remedy Project Proposals, https://www.cupertino.org/our-city/departments/community-development/planning/major-projects/builder-s-remedy-project-proposals, Accessed 11/28/2023.

    1. Builder’s Remedy Project Proposals, City of Cupertino, https://www.cupertino.org/our-city/departments/community-development/planning/major-projects/builder-s-remedy-project-proposals, Accessed 11/28/2023.

    2. Christopher, Ben. (2023, June 5). “Godzilla next door”: How California developers gained new leverage to build more homes. CalMatters. https://calmatters.org/housing/2023/06/california-builders-remedy/, Accessed 11/28/2023.

    3. Redlined Text Changes to the Heart of the City Specific Plan (see Central Stevens Creek Boulevard), City of Cupertino, https://cupertino.granicus.com/MetaViewer.php?view_id=18&clip_id=1251&meta_id=67811)

    4. Hase, Grace. (2023, November 28). Cupertino sees its first “builder’s remedy” project. The Mercury News. https://www.mercurynews.com/2023/11/27/cupertino-sees-its-first-builders-remedy-project/, Accessed 11/28/2023.

    5. FAQ, City of Cupertino. https://www.cupertino.org/our-city/advanced-components/faq/-seldept-6?NavID=412#:~:text=The%20reduction%20in%20sales%20tax,to%20provide%20a%20soft%20landing. Accessed 11/29/2023.

  • No Money, No Problem: Cupertino to Pursue Costly New City Hall, Despite Lack of Funding

    No Money, No Problem: Cupertino to Pursue Costly New City Hall, Despite Lack of Funding

    On October 17th, 2023, a heavily-debated topic was presented at the Cupertino City Council meeting: whether or not the City should tear down and rebuild its City Hall. In order to fund the construction of a new City Hall, Council considered building high-density housing on City-owned properties, such as the current City Hall, Community Hall, and Sports Center.

    Video Recap of City Hall Meeting

    Background

    Cupertino’s City Hall, which contains the Emergency Operations Center, does not meet current seismic safety standards. Over the last decade, several City Councils have floated solutions, ranging from new buildings with many amenities ($100 Million +) to a retrofit of existing buildings ($27 million). A recent audit of the tax deal between Apple and the City might result in a $56M+ loss to the City. However, rather than working to resolve this impending loss of tens of millions of dollars per year, the current Council majority is instead opting to spend more money on a brand-new City Hall. The solution could include selling public land to private entities and/or engaging in public-private enterprises. 

    A Change in City Hall Direction

    In 2022, the prior council, including current Council Members Kitty Moore and Liang Chao, voted to pursue the lower-cost renovation of City Hall. On February 21st, 2023, the current City Council led by Mayor Hung Wei directed city staff to stop working on plans to seismically retrofit the City Hall, and  instead investigate a plan for a new and larger City Hall. Currently, City Hall is an office for about 130 employees, many of whom often work from home.

    Questionable Funding for New City Hall

    The City hired a consultant, Cumming Management Group, with a master agreement of up to $170,000 for real estate research. The initial 83-page study, which cost our City $76K, explains that these partnerships can involve selling or long-term leasing of City-owned land. It recommends building housing at sites that it considers to be “underutilized,” such as the Sports Center. However, the study revealed that it would be difficult for these partnerships to provide enough funding for a new City Hall, even with high-density housing.

    During the October 17th meeting, Assistant City Manager Matt Morley presented the findings of the report. Morley noted that because Cupertino is in a 10-year deficit, it does not have the cash flow to issue debt to fund a new City Hall. Raising taxes would also not be ideal, since taxes typically fund operational expenses. The only funding method staff could recommend was a public-private partnership, though profitability is unlikely. It is questionable whether profit-seeking development interests will assume the work of City Hall on behalf of the public.

    Councilmember Chao questioned the density of housing required to make the project profitable. Chao stated that Stevens Creek currently has 35 units per acre, but by her calculations, a project would need 60 units per acre (or 10 stories) to be profitable. Morley demurred, saying he did not want to get into this further. 

    Councilmember Moore questioned the public-private partnership option, given doubtful profitability. “Why would we go to this endeavor if it doesn’t pencil out?” Moore asked. Moore stated that she worked on the City Hall subcommittee, and  a seismic-only retrofit could cost as little as $ 7.4 million; other options had different price tags.

    The need for a new City Hall is further questioned given that the City’s population is projected to decline over the next five years.

    Protest from Cupertino Community

    Many residents and non-resident supporters attending the October 17th Council meeting were driven by their concern that the Cupertino Sports Center might be eliminated to fund City Hall.  Forty speakers put in speaker cards and several more raised their hands on Zoom, but they did not all have the opportunity to speak. Speakers reminded the Council how important the Sports Center was to creating a sense of community, as well as to their health. 

    Resident Patrick Kwok stated the city spent millions of dollars making the center ADA compliant. Kwok added that projects like the retrofit, or the new City Hall complex should be put on the ballot, like the library, so the public can decide how taxpayer dollars would be spent. City councils have the authority to place land use decisions, such as whether to build a new City Hall or renovate an existing City Hall, on the ballot for Cupertino voters to decide.

    Another resident wrote the Council, stating “Our City Hall should continue to be part of our Civic Center complex with our Community Hall and Library. Housing in Cupertino should continue to be provided by the private sector with supportive policies from our City Council and City staff.”

    Possible Project Ties to Vallco

    Mayor Wei shut down Oral Communications on Item #7, the City Hall study, before all speakers spoke. She stated that it was necessary to bring the item back to the council for a vote. Wei put forward a motion to “pursue conceptual development of a new City Hall and/or renovation” along with specific interest in partnering with Sand Hill Properties (the owner of Vallco). 

    At Councilmember Moore’s objection to the ethics of naming individual developers in a motion, Sand Hill was removed. To note, Sand Hill recently defaulted on a 100,000 square-foot office building in Mountain View. 

    By a 3-2 vote, the revised motion passed. Chao and Moore cast the dissenting votes.

    Additional Resources:

    To view the Council Meeting, the presentation and written comments go to:

    https://cupertino.legistar.com/DepartmentDetail.aspx?ID=22534&GUID=759DE527-B7CF-4B4C-88AB-B83875AB732D&Mode=MainBody

    The City of Cupertino’s website provides a summary and a number of documents. To note the comprehensive study to renovate the City Hall is presently missing: https://www.cupertino.org/our-city/departments/public-works/capital-improvement-program-projects/city-hall-projectPart of the City Hall renovation plan can be found in Councilmember Kitty Moore’s public comment from the 10/17/23 meeting, starting on page 121:

    https://cupertino.legistar.com/View.ashx?M=E2&ID=1053225&GUID=32C570ED-67B8-43BB-8BE8-7F0A82467799

  • Cupertino Anticipates Financial Deficit – Impacts Remain Unknown

    Cupertino Anticipates Financial Deficit – Impacts Remain Unknown

    Cupertino financial woes got a reality check when last-ditch efforts at the governor’s office failed to save its lucrative tax revenue sharing agreement with Apple. On October 17, 2023, staff proposed to set aside a $56.5M sales tax reserve, further worsening Cupertino’s impending budget deficit.

    Background

    Since 1998, Apple has assigned Cupertino as its point-of-sale location for all online purchases of its products in California. According to Bloomberg Tax, the appropriate point-of-sale location for internet sales is determined by where an item is “picked, packed, and shipped.” Because Cupertino is not a distribution center for Apple products, the California Department of Tax and Fee Administration (CDTFA) warned the City in December 2021 that its sales tax revenues might have been improperly allocated.

    Like all public money, Cupertino’s tax dollars are subject to redistribution. While the State of California has been questioning tax sharing agreements that divert money from other municipalities, there are also arguments for keeping these agreements. Tax revenue sharing agreements, such as the one Apple argued was essential to its survival during a lean period in the 1990s, are enacted to help struggling businesses thrive and benefit the greater economy. Apple has received over $107.7 million of California’s sales tax revenue since its revenue sharing agreement with Cupertino was first enacted in 1998.

    Over the years, Cupertino has become increasingly dependent on Apple for its sales tax revenue, which City staff expects to drop from $42.1M to $9.4M (the $42.1M likely includes Apple’s portion per the agreement). Additionally, Apple-owned properties also account for about a quarter of the City’s real estate tax revenue.

    Budget Deficit Worsens

    Although copious information is available through Bloomberg Tax, the current Council majority (which took office December 2022) only recently began discussing the fiscal crisis that it was repeatedly warned about by the prior Council. The City’s response to the CDTFA’s threat to terminate the Apple agreement and to repay the taxes dating back to April 2021 has been sluggish.

    On October 17, 2023, staff proposed to reserve $56.5M to repay the taxes. Then, on October 25, City Council met in closed-session to discuss litigation against the CDTFA. City Council is expected to reveal the outcome of that meeting at the next City Council meeting on November 7. Meanwhile, the debt will grow as Cupertino continues to receive disputed funds from the state. Accounts payable data indicates that the City ceased reimbursing Apple its share in January 2023.

    Moving forward, City spending has continued unabated. The budget allows for an 11% increase in employee headcount since 2019 (203 to 225), while Cupertino’s population has declined 8%. Cupertino is already in debt from the construction of the Library and the Community Hall, pegged at $2.7M annually until 2030. Given the impending structural deficit, the City is unable to able to issue more municipal bonds because it does not have a reliable revenue stream to repay them.

    At a time when Cupertino needs it most, the current Council majority canceled the Economic Development Committee at the beginning of this year. Meanwhile, Mayor Wei has not asked for budget cuts, instead advocating for a new City Hall that the City can’t afford.

    References

  • New Cupertino Boba Shop Draws Hour-Long Waits

    New Cupertino Boba Shop Draws Hour-Long Waits

    A highly-anticipated new boba shop has made Cupertino its home: Chicha San Chen. The franchise’s Cupertino location is the first in all of Northern California. As such, it is currently drawing waits from 40 minutes to two hours, with lines stretching down the block. Fortunately, guests are supplied with umbrellas to shade them as they wait.

    Chicha San Chen Cupertino
    Chicha San Chen Cupertino

    Boba, also known as “bubble tea”, is a tea-based beverage containing tapioca pearls or “bubbles”. What separates Chicha San Chen from other boba shops is its focus on Taiwanese tea. All of the teas on its menu have won awards from the International Taste Institute. The franchise uses a proprietary LION “teapresso” brewing machine customized for each type of tea. 

    Unlike most boba shops, Chicha San Chen also offers a complimentary tasting of its teas. Guests can sample its Oolong roasted to five different levels: light, light-medium, medium, medium-heavy, and heavy. Reservations are required for this experience.

    Chicha San Chen is currently open 7 days a week, from 12:00 – 7:00 PM. At the time of this article, drinks are approximately $6.75 – $7.75 each. It is located on 20688 Stevens Creek Blvd in Cupertino, in the space formerly inhabited by Fire Wings.