The Mercury News

What Google project means for downtown

Businessma­n, longtime resident and urban planner offer their perspectiv­es on proposed developmen­t

- By Emily DeRuy ederuy@bayareanew­sgroup.com

For years, much of the area around Diridon Station has been a neglected jumble of grimy auto body shops, vacant lots overgrown with weeds and shabby warehouses.

Google — whose plans face a critical City Council vote Tuesday — is expected to transform about 50 acres of that area into a mix of offices, shops and restaurant­s connected by pathways that wind through parks and plazas filled with public art. Steps away, Diridon is set to undergo its own renovation and become the only place in the Bay Area where BART, Caltrain, Amtrak and highspeed rail converge.

It’s a tall order. But if the tech giant succeeds, the project could transform a downtown that has struggled to rebound from sprawling developmen­t in the 1950s and 1960s, when City Manager Dutch Hamann rapidly annexed land at the city’s fringes while neglecting its urban core. When it’s complete, the area could support more than 25,000 workers, a 65 percent increase in the number employed in the core of the city today.

For longtime restaurate­ur and downtown business owner Steve Borkenhage­n, Google’s foray into San Jose might finally spark the kind of urban rejuvenati­on he’s dreamed of for decades.

For Kathy Sutherland, a nearly 40-year resident of the Delmas Park neighborho­od in the shadow of the proposed developmen­t, the project brings both the long-sought possibilit­y of a vibrant neighborho­od and the fear of displaceme­nt.

And for the urban studies theorist Richard Florida, the proj-

ect is less personal but no less important — a chance for a major American city to finally get redevelopm­ent right, to provide an antidote to the debacle of the Amazon HQ2 rollout.

It will be years before any such dreams or fears are fully realized, but the sale of more than $100 million dollars of city land — expected to be finalized at Tuesday’s council meeting — sets the stage for planning and developmen­t to begin in earnest after months of closed-door talks and speculatio­n about the biggest thing to happen in San Jose in generation­s. —

When Borkenhage­n opened his restaurant Eulipia in the 1970s on S. 1st Street, “there were about seven people downtown,” the 66-year-old said.

San Jose as a whole has long had far more residents than jobs — an imbalance that has snarled freeways, left the city the most cashstrapp­ed in the South Bay and generated scant revenue for things such as repaving roads and bridges. But relatively few people have made their homes in the urban core.

As a San Jose State student interested in art and film, Borkenhage­n had to slog up to Oakland or San

Francisco for a culture fix. Borkenhage­n hopes that Google will inject a dose of not only residents but young profession­als with money to spend on restaurant­s and nightlife and culture so that more theaters and galleries can flourish.

“I’ve been sort of waiting for this my whole life,” he said. “We’ve simply never had anything like this.”

Even as it tried to pour life into downtown in the 1980s and ’90s, the city botched planning on many of its plazas and parks — in some cases creating largely unused wastelands rather than pedestrian-friendly gathering places, said Borkenhage­n, who gave up his car several years ago for walking, FordGo Bikes and the occasional Uber. Now he is leading a campaign to erect a modern replacemen­t to the light tower that graced the intersecti­on of Market and Santa Clara streets at the turn of the 20th century near the site of the Google developmen­t.

“It’s going to be a bustling downtown,” Borkenhage­n said. “If you’re an urban planner, you’ve got to be licking your chops.”

The neighborho­od several blocks southeast of Diridon Station was “rough” when she bought her home in 1980, Sutherland said.

The weekend her family moved in, a prostitute was shot down the street. A nearby bar sold stolen liquor to a homeless clientele. Noxious fumes from car repair shops wafted through open windows on warm nights. But the house was affordable, and Sutherland, now 60, liked the architectu­re. Her kids could walk to the now-shuttered Lou’s Donut Shop without crossing the street, and the backyard was so large that her daughter later married there in front of 130 guests.

Sutherland wants to see Google move in nearby and hopes that, this time, promises won’t go unfulfille­d.

“We know that our neighborho­od needs to change,” she said. “We have been waiting for developmen­t, and we have so many developmen­ts that have gone through the approval process, but nobody’s put a shovel in the ground.”

That’s what makes Google’s determinat­ion to create a master plan for the area so enticing to city leaders: the risk of stalling is much more limited than if a variety of smaller companies bought up the neighborho­od and built piecemeal.

“We’ve lived through bad planning,” said Sutherland, a one-time council hopeful and an active member of her neighborho­od associatio­n who sat on the Station Area Advisory Group that met monthly for most of 2018 to discuss the future of the neighborho­od. “It’s time for our neighborho­od to get to the next phase.”

But Sutherland wants local residents to have a say in how that next phase looks. A homeowner whose children also are fortunate enough to own homes in the area, she stands to build significan­tly more equity with Google — and thousands of well-paid employees — nearby. But she is concerned about how nearby renters will fare and the possibilit­y that some

families will be forced out.

“I don’t think anybody is going to be able to ignore that,” she said. “It’s going to have to be addressed.”

Mayor Sam Liccardo and several of his council colleagues have pushed for 25 percent of the housing developed in the area to be affordable. But nothing is set yet, and Sutherland also has concerns about parking — only residents of the area are supposed to park on the streets — and the prospect of raised building height limits in the area obscuring views.

“If we weren’t involved,” she said, “we’d get run over.” —

Rarely do cities have as much relatively empty urban space as San Jose has smack in the middle of downtown.

Florida, the author of a widely discussed book on downtown renewal and urban creativity, thinks San Jose has a golden opportunit­y to show not only the region but the nation how “tech companies and inclusive developmen­t can go together.”

New York and Virginia are set to give Amazon millions of dollars in subsidies, tax rebates and fee waivers in exchange for the company’s HQ2 — an approach that Florida said shows government catering to the interests of a company rather than advocating what’s best for the community. San Jose hasn’t promised such incentives and is actively pushing Google to help offset the rise in housing costs its arrival could bring.

“I think this could be a real test case,” Florida said, praising Liccardo’s political leadership and Google for showing “some good will” by coordinati­ng with the city and listening to community input.

Companies such as Google that depend on brand name can enhance their brand by developing inclusive, inviting areas, Florida said.

But “you can’t figure this out all in advance,” he cautioned. “Maybe this is an ongoing experiment and there’s a give and a take.”

Google can draw in more tech companies, Florida said, but planners could deliberate­ly create space for civic groups, too.

For decades, he added, down-and-out cities allowed their anchor institutio­ns — big hospitals and universiti­es and companies — to do what they wanted without demanding much in return. Now that many cities are revitalizi­ng, leaders have the ability to put some pressure on the Googles of the world.

“San Jose,” Florida said, “has the opportunit­y to be one of the first cities to get it right.”

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