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Tech merger is a possible mixed bag for the city
Office construction could be easier, park may be in trouble
By GEORGE MOORE
The $25 billion deal Hewlett-Packard has proposed to buy Compaq Computer--barring antitrust issues--may solve a land-development issue for the city of Cupertino. The city's staff has been working with Compaq for more than two years on a proposed 700,000-square-foot research and development office just east of the Vallco Shopping Center on Stevens Creek Boulevard.
The city has been negotiating with Compaq's local office, located near the proposed new site, but it appears land-use decisions are made at Compaq's Houston headquarters.
"The view of land use in Houston is very different from here," said Richard Lowenthal, vice mayor of Cupertino. "Several times we were close to having something approved, but someone in Houston nixed it. I'm hoping a more local management is the result of the HP buyout."
Mayor Sandra James expressed similar feelings about Compaq's home in Texas.
"It is always difficult when dealing with out-of-state land ownership," James said. "We have the same problem with Vallco and The Oaks."
Lowenthal said HP's large presence in Cupertino, might bring more focus on negotiations. He said the plans were nowhere near finalization--Compaq pulled them back before the proposed buyout. But he said the positive aspect of Compaq's preliminary idea was that it was mixed-use, so it included some housing and retail.
"We have been struggling with the fact that the new office would provide a lot more jobs and not enough housing," Lowenthal said. "Our rule of thumb is a housing unit for every 500 square feet of office space--so that would mean 1,400 more housing units."
He added that the housing number is a little aggressive and could probably be negotiated.
A skate park was also included in the proposal to the city, but the merger might jeopardize it. Compaq owns about 14 undeveloped acres near Vallco, and James said that at this point no one knows what is going to happen with the land. She said many local developers have expressed interest in buying it, but until the dust settles around the buyout, it is up in the air.
"Compaq had nothing ready for the planning commission and was working with our staff and its own consultants trying to address the issues we have," James said.
Steve Piasecki, community development director for Cupertino, said Compaq was still in the early stages, and their application required an amendment to the General Plan--which the city council has to authorize before it can move forward.
However, Lowenthal is optimistic now that HP may be making the decisions, and he hopes it will be clearer about its needs.
"It may be possible that they want to sell the land," Lowenthal said. "I am just hoping they will be more decisive."
About 15,000 employees are expected to lose their jobs as a result of the merger, saving roughly $2.5 billion as part of overlapping costs.
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Cupertino, California Since 1947
