Google land sale backed by San Jose City Council
Vote on $110 million deal draws protests, arrests
The San Jose City Council early Wednesday approved a $110 million public land sale of 10 acres to Google, a key step to advance the tech giant’s expansion plans that would transform the city’s downtown, despite protests that led to arrests and a rare closing of the council’s chambers.
After hours of debate that began Tuesday, the council voted unanimously after midnight for a plan by Google to bring around 20,000 jobs near Diridon Station by 2035, which would make it the city’s largest private employer. Specific buildings haven’t been proposed, and final approvals are expected to take years.
Dozens of residents expressed opposition, eloquent and profane, to Google’s arrival in San Jose at a public hearing preceding the vote, underscoring the tension over tech’s enormous growth in the region. Opponents said Google would exacerbate the city’s housing costs and displace residents. They also criticized the company’s lack of minority workers and questioned if the company would benefit local residents. Google said in its diversity report that 2.5 per-
cent of employees are black and 3.6 percent are Latino.
“San Jose can’t afford a Google deal that ignores tenants,” Alejandra Mejia, a mother of three children who said she has lived in a homeless shelter, said at the hearing.
At one point, as council members prepared to cast their votes, opponents broke out in chants, prompting city leaders to put the meeting on hold for an hour. Some protestors chained themselves to seats until police officers used bolt cutters to separate them from the furniture. Eight protestors were arrested, multiple news outlets reported.
City officials said the development would bring much-needed jobs to the city and boost tax revenue, without requiring public subsidies. The council is seeking 25 percent affordable housing as part of the project.
“San Jose is still technically a bedroom community,” Kim Walesh, San Jose deputy city manager, said at the hearing. “Our job growth has not kept pace.”
Walesh said the city has 0.81 jobs for each employed resident, the lowest ratio among any major U.S. city. More than 60 percent of employed San Jose residents commute out of the city for work, to destinations including Google’s headquarters in Mountain View.
She said having Google as the single master developer would give the city more leverage in negotiating community benefits.
San Jose Mayor Sam Liccardo said at the hearing that the expansion would “revitalize many dark corners of our downtown” and that Google was a “model community partner.”
Mark Golan, Google vice president of real estate and workplace services, said at the hearing that the company has been talking to community groups for 10 months and supports a deal with no tax subsidies and payment for additional community benefits.
Diridon Station is one of the Bay Area’s largest transit hubs, with current service by Caltrain, Amtrak and VTA light rail, and a planned BART connection by 2026. The city passed its Diridon Station Area Plan in 2014, calling for over 5 million square feet of office space, more than 2,600 housing units, 420,000 square feet of retail and 900 hotel rooms. It isn’t clear how many housing units Google will build, but the company has said residential development is a priority.
The project is expected to generate $8.5 million to $12.5 million in annual net tax revenue, plus $45 million to $69 million in new property tax revenue, according to a citycommissioned study.
Silicon Valley Leadership Group, a nonprofit trade association whose members include Google, found 68 percent of San Jose residents supported the project in a September poll. The South Bay Labor Council and Silicon Valley Rising found 63 percent of 400 San Jose voters surveyed supported the project in a poll released in February.
Project opponents said they want public land to be used for public housing and shelter for the homeless. Walesh, the deputy city manager, said Google building marketrate housing would help fund affordable housing.
Randy Musterer, owner of Sushi Confidential, a restaurant about a half mile from the planned project, voiced his support, saying Google’s presence would help boost sales for small businesses. He said he would hire 50 people if the project moves forward.
“We look forward to continuing to engage with the community and city of San Jose to form a joint vision for the proposed development,” Javier Gonzalez, South Bay policy lead for Google, said in a statement after the vote.