Since December 2016, Google and its development partner, Trammel Crow, have acquired a number of parcels in the central zone of the Diridon Station Area. Google would like to acquire several City and SARA*- owned sites that total approximately 20 acres across 16 parcels.
Preliminary discussions with Google indicate interest in building a master-planned transit-oriented development that includes between 6 and 8 million square feet of office/R&D space and retail/commercial amenities. This development could support more than 20,000 new Downtown employees, significantly aiding the City's need for local jobs and supporting ridership on existing and new public transportation investments. The development will engage and integrate with the surrounding community and be a permeable, open-style development with active, high-quality public open spaces. The company has demonstrated a commitment to quality and innovation in workplace design and sustainability.
Securing a marquee employer like Google as a lead private partner can help accelerate the quality and timely development of the Diridon Station Area. Google will join the collaboration with the City of San Jose, VTA, Caltrain, Arena Management, and High Speed Rail to make the Diridon area as one visionary, cohesive project, and destination place.
The first step in this process was completed on June 20, 2017 with City Council's approval of an Exclusive Negotiations Agreement with Google to pursue purchasing the City and SARA-owned sites.
The next step in this process was to determine fair market value for the land and negotiate a Compensation Agreement, which is a condition to the sale of the SARA properties. The City and County of Santa Clara each hired MAI appraisers to determine fair market value of the SARA properties, and ultimately agreed on a total price of $67 million. The Compensation Agreement was approved by the Santa Clara County Board of Supervisors on February 6, 2018, approved by the City Council on February 13, 2018, and approved by the SARA Oversight Board on February 22, 2018.
To complete this step, the remaining 12 affected taxing entities must also approve the Compensation Agreement. Staff estimates that this process will span March to June 2018.
*Successor Agency to the Redevelopment Agency