REDEVELOPMENT AGENCY 
June 21, 2005

The Redevelopment Agency of the City of Sunnyvale convened in the City Council Chambers, 456 West Olive Avenue, Sunnyvale, California at 10:25 p.m., with Agency Chair Dean Chu presiding.

ROLL CALL

CONSENT CALENDAR

Vice Chair Swegles moved and Agency Member Howe seconded to approve consent calendar with amendment to minutes noting Agency Counsel should be shown as Joan Borger instead of David Kahn.  Motion carried unanimously 6-0, with Agency Member Miller absent

CITIZENS TO BE HEARD

Dave Whittum, a member of the public, made the point that if the purpose of the Agency was to eliminate blight and noise is considered blight then noise should be eliminated.

Joe Auntuzzi, Chair of the Sunnyvale Downtown Association, announced that the 9-week Sunnyvale Summer Series Music and Market begins on July 6^th and will be held each Wednesday night through August 1^st;; the market opens at 5:00 p.m. with live music performed from 6-8:00 p.m. and this year, the music festival will be kicked off by The Joe Sharino Band.  He thanked the City for its support and invited all citizens of Sunnyvale to come early.  Mr. Auntuzzi also answered questions from Agency Members about volunteering to work a booth during the series.

PUBLIC HEARING/GENERAL BUSINESS

Mary Bradley, Finance Director, presented the staff report.

Agency Chair Chu opened the public hearing at 10:35 p.m.

Dave Whittum, a member of the public, suggested the City include in the budget, funds to construct some noise mitigation measures in the area.

Agency Chair Chu closed the public hearing at 10:37 p.m.

Agency Member Fowler moved and Agency Member Howe seconded to approve staff recommendation: Alternative A - Adopt the Resolution for the FY 2005/2006 budget as outlined in this report.  Motion carried unanimously 6-0, with Agency member Miller absent.

RESOLUTION NO. 105-05 RA – A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SUNNYVALE ADOPTING THE BUDGET OF THE REDEVELOPMENT AGENCY FOR FISCAL YEAR JULY 1, 2005 TO JUNE 30, 2006

Robert Paternoster, Director of Community Development, presented the staff report.  Staff answered questions from the Agency about: the two separate plans for demolition and construction and the mitigation plan; the completion date; methods for controlling dust and the streets that will be monitored for cleaning; location and number of parking spaces; and source of water to be used at construction site.

Agency Chair Chu opened the public hearing at 11:04 p.m. 

Jane Vaughan of Menlo Equities representing applicant Fourth Quarter Properties (Forum), requested City Attorney give an opinion on the special development permit requirements of the mitigation plan as to whether City can now add more items or if Agency is required to approve the plan as it now stands provided it complies with the special development permit. Ms. Vaughan also addressed issues/concerns and responded to questions from Agency Members about tree protection, parking and shuttle service, cleaning streets and buildings affected by demolition; intended advertising; losses covered; painting fence; water; facades, completion and opening dates; and what applicant assumes responsibility for.

Arthur Schwartz, a member of the public, expressed his concerns about the mitigation plan not addressing bicycle and pedestrian traffic issues which he feels need to be included.

Dave Whittum, Secretary of the Heritage District Neighborhood Association commented about parking, protection of trees, dust and truck noise.

Joe Auntuzzi, Chair of the Sunnyvale Downtown Association, responded to Applicant's comments regarding advertising and the need for a marketing budget that provides for broader range of advertising to make sure citizens know that the downtown merchants are still open for business; that the City has a right to ask developers to help downtown businesses that will be affected by the demolition and construction; the availability of parking and need for shuttle buses; and agreed that downtown business owners may need to organize themselves into a business improvement district.

Robert Paternoster, Director of Community Development, reminded Agency Members that before them tonight for consideration was the approval of the construction mitigation plan, specifically, the demolition phase, and they were not mitigating loss of business to downtown merchants.

Mike Johnson, Executive Director for the Sunnyvale Downtown Association and Chair for the Mitigation Committee, expressed concerns for: the marketing budget and marketing strategy of Applicant and the need to include support for downtown businesses in their marketing plans; parking plans, need for additional security, rodent infestation issues, and the need for alternative signage on city streets and near freeways.

Anne Dugan, a downtown acupuncture business owner, stressed the importance of accessibility of parking and need for shuttle service for her clientele, infestation of roaches and rodents; that the small individually-owned downtown businesses do not have the resources to do marketing and the developer needs to emphasize in their marketing that the downtown businesses are open and parking is available to the community during the demolition and construction process.

Sean O'Keeffe, immigrated from Ireland in 1997 and is now the owner of the Irish pub located downtown, expressed his concerns about: losing what he has worked so hard to acquire in order to make a better life for himself and the 12 people he employs; the ability to meet payroll if there is a further reduction in his business, the importance of not cutting street cleaning and garbage services; the developer's marketing plans; and availability of parking close by.

Alison Yamashita, a new restaurant owner in the processing of opening a business on Murphy Street, wanted to reiterate what Joe Auntuzzi and Mike Johnson had said to Agency, that nearby parking was very important to them, that developer is responsible for helping to lessen the impact the demolition and construction will have on the downtown area; the need for increased service and a regular schedule to clean the streets; that she has talked to other business owners in the Town & Country area and they also expressed the importance of nearby parking and a shuttle service, keeping twinkle lights on and the water fountain flowing as it impacts citizens' perceptions of the downtown area – that without the lights and fountain operating the downtown area appears to be in decline and citizens do not want to enter the area.

Jane Vaughan of Menlo Equities representing applicant Fourth Quarter Properties (Forum), spoke again in order to respond to the issues raised by the other speakers:  with regard to parking she emphasized the distance from the parking areas to the business area is nominal and questioned whether their businesses will be impacted any more than they already have been by the mall closure; that downtown parking is plentiful and they will keep Macy's east lot open as long as they can.  Ms. Vaughan answered questions from Agency Members about marketing plans and assured Agency their marketing would be designed to help the merchants and to keep the public informed that their businesses are open – that their marketing plan will be a joint marketing effort with local business owners; that signs will done by a graphic designer and they will work with merchants on signage.  She pointed out that their real focus and energy will be on getting the project built and added she is not sure how they are responsible for security issues not related to their project.  

Agency Member Swegles informed Applicant that there is a need for handicapped parking perhaps there should be a handicapped shuttle.  Staff again emphasized that the Agency is only considering the demolition phase of the Construction Mitigation Plan at this meeting. Parking  issues are not an issue at this stage, but could be an issue at the next stage.

Agency Chair Chu closed the public hearing at 12:24 p.m.

Agency Member Fowler moved and Agency Member Lee seconded to approve staff recommendation: Alternative No. 1 - Approve the Sunnyvale Town Center Demolition Construction Mitigation Plan as modified by staff.

Agency Member Lee proposed a friendly amendment to increase the amount of signage in the location including El Camino Real/Mathilda as one place in addition to other areas approved by the Director of Community Development in discussion with the downtown merchants. Agency Member Fowler accepted the amendment.  Agency Member Lee proposed a second friendly amendment to increase the advertising to the equivalent of six full-page ads in the Sunnyvale Sun and the equivalent of six half-page ads in the San Jose Mercury News. Agency member Fowler accepted the friendly amendment. 

Motion carried unanimously 6-0, with Agency Member Miller absent.

Agency Chair Chu opened the public comment at 12:39 a.m.  There being no public testimony, Agency Chair Chu closed the public hearing at 12:40a.m.

Vice Chair Swegles moved and Agency Member Fowler seconded to approve staff recommendation: Alternative No. 1 - Adopt, by resolution, the annual findings and the Deficit Reduction Plan.  Motion carried 6-0 unanimously, with Agency Member Miller absent.

RESOLUTION NO. 108-05 RA – A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SUNNYVALE MAKING FINDINGS RELATED TO THE DEPOSIT OF FUNDS IN THE LOW AND MODERATE INCOME HOUSING FUND AND ADOPTING A LOW AND MODERATE INCOME HOUSING FUND DEFICIT REDUCTION PLAN

ADJOURNMENT

Agenda Chair Chu adjourned the meeting at 12:45 a.m. 

Katherine Bradshaw Chappelear, Agency Clerk.