Controversial Development Site in Cupertino Compounds Legal Controversy

The city of Cupertino rezoned a controversial development site in case a judge tosses the developer's current plan for the site. Now the developer is suing, accusing the city of an illegal taking.

2 minute read

February 26, 2020, 12:00 PM PST

By James Brasuell @CasualBrasuell

Sand Hill Property Co. / Vallco Town Center

"The developer that wants to transform the defunct Vallco Shopping Mall into a mixed use development has filed a complaint against the city of Cupertino for trying to gut the heart of its proposal," reports Thy Vo.

The claim by Sand Hill Property Co. says "general plan amendments the City Council approved in August eliminated a zoning allowance for up to 2 million square feet of office space, and confines housing development to 13.1 acres of the 50-acre Vallco site," according to Vo.

The amendment would affect not the developer's current plan, which is currently awaiting a court decision as a crucial test for the state's SB 35 law, according to an article by Marissa Kendall from December 2019. (SB 35 went into effect in 2018, "and attempts to encourage housing development by requiring cities to fast-track residential and mixed-use projects that meet certain criteria," according to Kendall.) If the court does toss the current plan, however, the zoning amendment approved in August would take effect for the site.

"The company has argued office space is critical for penciling out large projects with retail and affordable housing and that the city’s action amounts to an illegal seizure of the company’s property without compensation, which would result in a 'loss of tens or hundreds of millions of dollars,'" according to Vo's explanation of the developer's response to the zoning changes.

Previous Planetizen coverage of the Vallco Shopping Mall development and its intersections with Prop 35:

Silicon Valley City to Approve Massive Vallco Development, Like it or Not (September 2018)
California's Law to Streamline Housing Already Having a Big Effect (June 2018)
'By-Right' Housing Law a Shot in the Arm for California Housing Developments (March 2018)

Government / Politics Land Use Urban Development California Cupertino Vallco Town Center Sand Hill Property Company NIMBYs SB 35 Controversies Lawsuits Government Takings Rezoning By-Right View More

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Get top-rated, practical training

Start Learning

Advertise with us

Urban Design for Planners 1: Software Tools

This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.