It's all about parking.

Regis Homes proposes demolishing the Oaks Theater and Tsunami Sushi to build 49 townhouse-style condominium units and two duet units on the west side of the property. Each unit will have a two-car garage and at least three bedrooms. The end units will have four bedrooms. The proposed project will reduce the center's existing parking spaces from 558 to 308. And the 308 parking spots will be shared by residents and retail businesses.

The developer also proposes narrowing Mary Avenue to construct 24 duets on the west side of the street. Each unit will have three bedrooms and a one-car garage. Guests would park on the street. The project will reduce the parking spaces along the street from 288 to 156. But to make the project possible, the city needs to sell and rezone that section of Mary Avenue.

According to a transportation consultant hired by the developer, the decrease in parking spaces will have no impact on the retail shops and apartment complexes near the Oaks.

Residents who live around the Oaks are not so sure.

"We cannot eliminate the parking on Mary Avenue," said Irvin Webster at the planning commission's Aug. 25 meeting. "We have Flint Center activities, special events at Memorial Park and the monthly flea market at De Anza College. And these parking spaces are also used by De Anza students and seniors at the Cupertino Senior Center. We are already at a breaking point."

"Removing the parking spaces will not only impede the traffic but also affect the use of these facilities such as the businesses at the Oaks, Memorial Park and the senior center," said Webster, 71. He has lived two blocks away from the Oaks for 35 years.

Webster was one of the 12 residents who voiced their opposition to the project at the meeting. Some worry that the development will exacerbate the already overpopulated Cupertino schools. Some don't like the density of the projects.

Some business owners at the Oaks are also concerned about the project's traffic impact.

"The development will reduce the availability of parking spaces for our facility and eliminate some potential or existing clients," said Steve Saxton, vice president of operations of Linda Evans Fitness Center. The fitness center boasts more than 3,000 members.

"Our busiest days are in the winter," Saxton said. "Just try to imagine a cold rainy January night and you have to park at the back side of the shopping center and walk to the gym in the rain. Or you can cancel your membership and find another gym that has better parking arrangements."

Mark Burns, a real estate agent with Coldwell Banker, also objected to the development.

"We have 80 agents in our 9,000-square-foot office. Last year, we had $300 million in sales and an average of 65 transactions every month," said Burns, who is also a member of the city's General Plan update task force. "We have enough parking problems on the weekends. The Oaks needs more retail. This project doesn't help."

The developer said they would work with the planning staff to address the concerns of the residents and business owners.

The planning commission suggested the planning staff separate the Oaks residential project from the Mary Avenue project. The Oaks residential project is scheduled to come to the planning commission again on Sept. 8 for more public input.