Vanilla 2 Theme

I want to create a new theme for my vanilla installation. I am reading the readme and it says to copy applications/vanilla/design/vanilla.css to the new theme folder. However I do not see any design sub-directory in the vanilla folder? Was this removed in 2.0?
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Comments
http://vanillaforums.org/page/ThemeQuickStart
It's a lot easier than it used to be