Council hears split recommendations on art-in-development policy; directs staff to return with options

The City Council held a study session Oct. 21 to review recommendations from the Arts and Culture Commission to revise Cupertino—ode language and develop an art-in-lieu policy for private development. Commissioners, planning staff and several residents debated whether the city should lower the in-lieu fee, create a separate art fund and expand permissible uses of those funds.

The commission recommendations: Arts and Culture Commission Chair Kiran Rora presented the commission's work after four public meetings in 2024 nd 2025. The commission recommended: (1) eliminate municipal-code language that "discourages" paying an art in-lieu fee, (2) make the in-lieu fee equal to on-site art valuation at 1% (instead of the current 1.25% in-lieu rate), (3) establish and maintain a separate art fund to collect in-lieu payments, and (4) allow the art fund to support both physical public art and programming, including an arts master plan. Rora said the change would "bring Cupertino on par with the majority of neighboring municipalities." The commission also asked to be the approval body for in-lieu requests (rather than only a recommending body to council).

The planning commission view and public response: Planning Commission Chair San (Sam) Rao and other speakers urged caution. The planning commission asked that the council retain the 1.25% in-lieu fee and keep the art fund restricted to creation of physical public art. Multiple public commenters said on-site art has produced widely distributed work across the city and said they prefer continuing the current approach. Others argued the public fund could be used to concentrate art in high-visibility locations and to support programming or a master plan.

Staff presentation and legal context: Senior planner John Martier explained the current ordinance history: a public-art policy dates to 2005, the first municipal-code requirement for art on private development was codified in 2009 and amended in 2018 to eliminate the prior $100,000 cap and to add the 1% on-site / 1.25% in-lieu structure for most projects (projects exceeding $100 million trigger a different in-lieu calculation). Martier noted many neighboring cities have different approaches and that there are no state requirements governing municipal public-art policies.

Council reaction and next steps: Council members expressed a range of views. Some favored parity between in-lieu and on-site valuations (1%) and creation of a distinct art fund; others preferred retaining the current 1.25% in-lieu rate and restricting fund uses to physical art. Several council members asked staff to return with clearer options and cost/accounting implications, including whether a separate art fund would add administrative overhead compared with a line item in the general fund. The council directed staff to return with refined language and options to consider at the first reading, and staff anticipated bringing a follow-up item in early 2026.

Why it matters: The change would affect how private development satisfies the city's public-art requirement, whether by incorporating art on-site or paying in-lieu fees; it would also shape how and where public-art dollars are spent and whether those funds can be used for programming, master planning or physical installations.

Ending: Council did not act on code changes at the meeting but asked staff for follow-up reports and suggested ways to involve the Arts and Culture Commission earlier in project reviews without delaying planning timelines.