San Jose council approves agreement for Apple campus in North San Jose

Much of the Silicon Valley's success is due in large part to high paying jobs. Without the jobs, the real estate market would not be as robust as it is today. The San Jose City Council knows this and were all too happy to approve Apple's latest expansion plans for what could be a 4 million square feet campus in North San Jose by 101 and First Street. It is believed the new campus will bring 16,000 jobs to the area. Many of these Apple employees will seek housing nearby which us Realtors will more than happy to help them with. 



SAN JOSE -- City leaders Tuesday unanimously approved an updated development agreement that clears the way for Apple to begin building its 86-acre campus in North San Jose, a massive undertaking that could bring more than 16,000 jobs to the community.

"Welcome to San Jose," said Councilwoman Magdalena Carrasco. "What can I do to convince you to open a store in Alum Rock?"

The future Apple campus is located on the north side of U.S. 101 near the Highway 87 interchange and stretches along Charcot Avenue to North First Street. With the exception of some existing office complexes, it is a highly-visible piece of land that has been vacant for years.

The tech giant, which will maintain its headquarters in Cupertino, recently revealed it will use the new San Jose campus -- which could be as large as 4.15 million square feet -- for office, research and development space. That footprint would exceed the size of Apple's leviathan headquarters in Cupertino.

And San Jose gave Apple a sweet deal when it comes to building and expanding the new campus -- up to 15 years to add buildings to the site.

"This provides assurances to Apple that upon approval of any necessary reserved discretionary approvals, Apple may proceed with future development" the city planners said in a staff report.

But for Mayor Sam Liccardo, the project means jobs, jobs and more jobs.

"This has been the most successful year of any economic development team in San Jose's history," Liccardo said.

Roughly 16,000 to 20,000 Apple employees could work at the North San Jose campus if it is fully developed.

"This has been a long time coming," said Vice Mayor Rose Herrera.

Though Apple has 15 years before the entitlements expire, city leaders and Apple officials anticipate shovels will hit the ground quickly. More than 1,000 Apple employees are expected to move into new and existing buildings within months, according to Nanci Klein, San Jose's assistant director of economic development.

An estimated $15 million in property tax will go to retire debt from the city's former redevelopment agency, Klein said, then 14 percent of revenues will go into the general fund.

Apple executives said Tuesday about 25 percent of the company's employees already live in San Jose.

"It's no secret that Apple has been growing," said Kristina Raspe, Apple's senior director of real estate and development. "This site is ideal for us."

Raspe said the company has more than 25,000 employees and 100 buildings in the Bay Area.

"In looking at San Jose it became clear we have an incredible opportunity to accommodate our growth here," Raspe said.

Source: Mercury News, Ramona Giwargis
http://www.mercurynews.com/news/ci_29436388/san-jose-council-approves-agreement-for-apple-campus-in-north-san-jose