On August 7, 2003, Forum Development Group filed an application for a Special Development Permit to redevelop Town Center Mall into a mixed-use, open-air shopping district. Because the application did not include signatures of all of the directly affected property owners, the application was deemed incomplete and not scheduled for hearings before the Planning Commission and City Council.

At a meeting with Forum and Lehman Ali on February 9, 2004, staff was informed that Lehman had acquired the former JC Penney building and had a purchase order to acquire the WHL Architects building. The developers also informed staff that they anticipated approval of their plan by Macy’s and Target in the near future, the last step in obtaining approval of all directly affected property owners. On the basis of this information, the applicants and staff put together the attached tentative schedule for processing the application and related agreements with the City and Redevelopment Agency. Because the applicant stated a need to complete the process before the Bankruptcy Confirmation Hearing on the Reorganization Plan scheduled by the Court for April 30, 2004, the City Council and Agency actions were scheduled for April 27, 2004. This resulted in a very tight schedule for processing this complex application.

DISCUSSION

The City undertook an extensive, year-long outreach program on the Downtown Design Plan, including two Planning Commission community forums, display of a three-dimensional model, two Quarterly Report articles with comment cards, utility stuffers and posting on the City web site. Following public hearings by the Planning Commission and City Council, the General Plan was modified to incorporate the Downtown Design Plan on June 17, 2003.

The application submitted by Forum On August 7, 2003, benefited from the public input received in the outreach effort on the Downtown Design Plan. However, the Forum application requested 100 more housing units than approved in the Plan, and 98,000 more square feet of office use. In addition, the Forum application included much more detail than the Downtown design Plan, including proposed placement and architectural character of buildings, street layout with McKinley Avenue and Murphy Avenue extended through the site, and a proposed new Town Square.

To date, the only significant effort of staff to inform the public of the Forum application was a two-page article in the Fall 2003 Quarterly Report. Staff is aware that the applicant also held meetings with the Friends of Sunnyvale, Sunnyvale Downtown Associates, various Downtown property owners, and the Sunnyvale Rotary Club. The applicant has expressed an intent to conduct two city-wide community meetings prior to the Planning Commission public hearing, as well as attend as many neighborhood and business group meetings as they are able.

It has been the practice of the City of Sunnyvale, as well as most other cities, to place responsibility for public outreach for a private development application upon the applicant. When the City is sponsoring a plan or project, as was the case with the Downtown Design Plan, public outreach is the responsibility of the City. In all cases, it is the responsibility of the City to make the public aware of the application and the date, time and place of the public hearing thereon.

Staff believes that the applicant for the redevelopment of the Mall should be responsible for planning, advertising, conducting and bearing the cost of the public outreach effort. A city sponsored public outreach program would be inconsistent with normal practice and it might suggest to the public that the City is advocating the project.

Because of the size and significance of this project, staff believes that the City should go well beyond legal mandates in publicizing the public hearings before the Planning Commission and City Council. In addition, staff recommends that the Planning Commission hold a public hearing at a special meeting prior to the regular meeting at which a public hearing and action will be scheduled. This would result in two public hearings before the Planning Commission and one public hearing before the City Council. Following is a list of the actions which could be undertaken to publicize the public hearings:

Possibilities for Expanded Public Meeting 

Staff recommends that all but the Wolfe Road banner be implemented.

FISCAL IMPACT

The legally required noticing is paid by the applicant through the application fee. All other items are already budgeted by the Communications Office or can be absorbed in the budget of the Department of Community Development.

PUBLIC CONTACT 

Public contact was made through posting of the Council agenda on the City’s official notice bulletin board, posting of the agenda and report on the City’s web page, and the availability of the report in the Library and the City Clerk’s Office.

ALTERNATIVES

1. Request the applicant to undertake an aggressive public outreach effort.

2. Direct the staff to undertake on behalf of the developer a public outreach effort similar to that undertaken for the Downtown Design Plan.

3. Request the Planning Commission to hold a special public hearing on the project prior to the scheduled public hearing and action at a regular meeting.

4. Direct staff to undertake expanded noticing.

5. Other action as directed by Council.

RECOMMENDATION

Staff recommends alternatives #1, 3 and 4

Prepared by:

Robert Paternoster
Director, Department of Community Development

Approved by:

Amy Chan
Acting City Manager

Attachments

A. Schedule for Town Center Mall Redevelopment