$77 Mill Decision at the Old Vallco Mall

The development site at the old Vallco Mall had some progress in the last couple of weeks, for better or worse. The Cupertino City Council recently voted to waive approximately $77 million in development fees for The Rise, the largest housing development in the city's history. This decision is part of a settlement with Sand Hill Property Company, the developer behind the project, which aims to transform the former Vallco Town Center and has been in dispute with the City of Cupertino for a while now.

What Happened?

The Cupertino City Council voted 4-1 to waive the fees. The waived fees for Sand Hill PC are partly due to the commitment to below-market-rate housing, as Sand Hill will build 356 more affordable apartments than they're "required" to. Additionally, planning fees were waived in exchange for the developer's commitment to contribute up to $500,000 for future projects in the area. The rumor is that the Sand Hill Property Company found the 500K in their waiting room sofa (joke).

The Developer's Perspective

Sand Hill thinks the development brings a lot to Cupertino, highlighting the inclusion of 890 affordable apartments and the development of over seven acres of public parkland. In their mind, it's worth the $77 Mill waiver. It's said the project will eventually provide approximately $43 million to the city over its lifespan, supporting transportation, affordable housing, and parks. So that's good.

City Council's Concerns

Many think the fee waiver is giving significant concessions to a wealthy developer. Some also say the development is heavily focused on office space compared to housing. Could $77mill be used for some real good in the city? Heck ya.

Community Impact

The Rise is slated to include 2,669 apartments and homes, along with 230,000 square feet of retail space and nearly 2 million square feet of office space. The project is expected to satisfy more than half of Cupertino's housing requirements, addressing state mandates for new housing by 2031.

Looking Forward

It's happening at some point. That Vallco site is going to be fully transformed, and that transformation is slowly rounding into form. This development is a significant step toward addressing Cupertino's housing needs, though it raises important discussions about the balance between growth and community priorities. As construction begins this month, it'll be interesting to see how The Rise shapes Cupertino's landscape and community in the years to come.

What do you think?