The Cupertino City Council recently approved a conceptual plan for a mixed-use residential and commercial project at the shopping center. Vallco, along with project architects Perkowitz and Ruth, will now have to draft a report on the details of the development.

"The revitalization of Vallco is what I have heard most about," said Mayor Sandra James at the Oct. 4 city council meeting, noting the shopping center's long decline. "The great majority of the community wants Vallco to be active and vibrant."

At one time, Vallco was a thriving commercial and community hub. However, it is now characterized by several empty retail spaces, particularly on the lower level. "For the first time something is happening [to reverse the decline]," James said.

With the exception of Councilman Richard Lowenthal, the council approved a project that adds 204 residential units facing interior courtyards. The residences will be built at the southeast corner of Wolfe Road facing the JCPenney store along with new restaurants and retail outlets. There will also be new construction on the JCPenney side of the street featuring retail operations and a parking structure. In addition, Vallco will have to make efforts to preserve two rows of ash trees along Wolfe that are considered to be in poor health.

"I like the project, with some exceptions," Lowenthal said in dissent. The [current] style of Vallco is not working ... the retail needs built-in customers." Lowenthal was also "adamant" that a cinema component of the plan be completed first, as a means of drawing in customers.

Lowenthal was not alone in his disapproval of the project. Several residents expressed concern over the area's lack of green space and possible consequences of overcrowding, particularly in the schools.

Cupertino resident Sally Larson urged caution about "rentals with transitory side effects."

Rick Hausman, who directs business services for the Cupertino Union School District, also added in a written statement, "New students will not pose a problem we cannot accommodate."

This was good news for a city council eager to jump-start Cupertino's stalled economic engine. "We need to get the revenue from someplace," James said, referring to the city's woeful fiscal situation. "Thirty-five percent of our revenue comes from retail dollars, and we don't have a vibrant retail core."

Said Councilman Patrick Kwok, "It does generate revenue and is good for the community."