The tony community of Cupertino is split over future development and the dispute that's simmered for more than a year is headed for a showdown in November over three ballot initiatives.

A loosely organized citizens group spearheaded by long-term Cupertino residents is pitted against more organized, politically savvy business and ideological interests.

Clearly at stake in the fight is the future of Cupertino, particularly its property values, appearance and funding for its schools and City Hall. Also in evidence, however, is the inherent conflict between a community's right to self determination and the desire for Silicon Valley cities to embrace regional planning, especially with regard to housing and public transportation.

The initiatives, if passed, would put Cupertino at odds with some of the most widely accepted principals in urban planning today.

The initiatives, which go to voters Nov. 8, are separate from one another. The first would limit building height to 36 feet, except near Vallco Fashion Park, where residential and mixed-use buildings could rise to 45 feet. That's roughly equivalent to two- and three-story buildings.

A second would limit housing density to 15 homes to an acre, except near Vallco, where it would be limited to 30 homes to an acre. By way of comparison, the city of San Jose is contemplating downtown high-rise condominiums with 100 or more units to an acre. Older, existing housing development in much of the valley is about eight homes to the acre.

The final initiative would require all buildings be at least 35 feet from a road.

For a development project to be built outside of these parameters, it would have to win approval from voters.

The 500-member Cupertino Chamber of Commerce has come out against the initiatives. A second group of citizens and business interests is forming the Alliance for a Better Cupertino to counter the initiatives. That group plans its first major fundraiser June 16, an event underwritten by Dynasty Restaurant, which recently opened a 1,200-seat eatery at Cupertino's Vallco mall. Dynasty is owned by Alan Wong, also a Vallco owner.

Vallco, which has broken ground on a $100 million redevelopment including a new 16-screen theater, recently received Cupertino city approval to build 204 condominiums and an additional 150,000 square feet of retail space at its site.

The Alliance for a Better Cupertino has retained as its co-chairs political consultant Richard Robinson, who, among other things, has worked for former President Bill Clinton, and Cupertino City Council woman Sandy James. Kathy Robinson, Mr. Robinson's wife, is managing the group day-to-day.

The Silicon Valley chapter of the National Association of Industrial and Office Properties, a commercial real estate trade group whose local members represent a who's who of national and regional companies, is watching Cupertino with great interest and concern.

NAIOP Executive Director Pat Sausedo says the initiatives, if passed, would undermine property values in Cupertino and could create an unfortunate precedent for other valley cities.

"These three initiatives would kill any mixed-use projects in Cupertino. We see that as really a very detrimental statement as we come out of this economic slump and a lot of property has to be reconfigured to make it productive," she says.

But advocates for the proposed building standards say their efforts are nothing more than an attempt to gain control over growth of their community. Dennis Whittaker, co-founder of Concerned Citizens of Cupertino, says he and the other members of his organization want to preserve suburban Cupertino even as Silicon Valley falls under increasing pressure to urbanize.

One of Cupertino's attractions is its nationally recognized school system, which buoy the town's housing prices and is a source of intense community pride. If the community lets Cupertino get over built, those schools will be threatened, he says.

"I think the city needs time to breathe before it hurts the biggest gem it has. Yes, Apple and Hewlett-Packard are gems, but the school system is one of the best in the nation. That's pretty nice," Mr. Whittaker says.

Mr. Whittaker's organization gathered thousands of signatures to put the three initiatives on the ballot. The group also has found itself twice in court against the city to reach its goals.

The three initiatives all would modify the city's general plan, the most comprehensive land-use document that a community adopts. General plans lay out a long-term vision and development requirements, specifying where housing, retail and other types of development will lie and what they will look like. Cities usually revisit general plans every decade or so to adjust to development trends and economic conditions. Cupertino has tried to update its general plan since early 2001, but the process has been stymied by the deep community dissent about what the plan will say. The initiatives and the new Alliance for a Better Cupertino are outgrowths of that dissent.

Mr. Whittaker says that the initiatives reflect citizen distrust of their elected officials, who he claims over many years have committed the community to developments inconsistent with the general plan and not in keeping with community wishes. Councilwoman James, who has served the city for eight years, vehemently denies this allegation.

Mr. Robinson, who emphasizes the alliance's broad support from environmentalists, labor and business, says of the initiatives, "You could build a Costco under these ordinances but not a new Apple headquarters."

Apple Computer Inc. (NASDAQ: AAPL) has its four-story, six-building headquarters in Cupertino facing Interstate 280. It is taller than the initiatives would allow, though it could be built if approved by voters.

All of this occurs as the City of Cupertino finds itself struggling to stay afloat. Sales tax revenue, the city's single largest source of funds for general government, is down more than 30 percent, or $4 million, from the 2000 peak, says Carol Atwood, director of administrative services. Annual increases are not even keeping up with inflation.

Eleven percent of the city's 155 full-time positions are frozen and unfilled, some for more than two years. General fund spending, a projected $31.9 million this year, is down by $3 million from 2000, and the city has drawn consistently from its savings to avoid cutting services more. This year it relied on two, one-time events for $2 million in revenue. If nothing changes, the city will use all its savings by 2008.

Business -- in the form of sales taxes, utility payments and hotel-room taxes -- produces more than 50 percent of the city's annual revenue, Ms. Atwood says. In this light, Cupertino's ability to attract commerce takes on an intensely important hue, and land use is clearly related to city income.

Listening to Mr. Whittaker, it's easy to understand the logic of his opinion and to hear the passion in his voice:

"These initiatives are very, very important to maintain the quality of life we have in Cupertino as best we can, even though the council has already hurt it. What does Cupertino have to offer? Our schools, the openness and our views of the mountains.

"We are not against development. We are worried about over-development and development that's out of control."