SANTA CLARA -- Feeling giddy in the aftermath of the City Council's unanimous approval of a $6.5 billion development deal, Mayor Lisa Gillmor on Thursday called the experience "surreal."
"It's exhausting. It's a little bit nerve-wracking. There's so much information that we've had to digest, comprehend and weed through," Gillmor said, predicting, "This is going to be the key to our financial future in Santa Clara."
The 9.7 million-square-foot City Place -- described as the largest private development project in Silicon Valley's history -- is to be built by the Related Companies on 240 acres of city-owned land across from Levi Stadium. Plans call for up to 5.7 million square feet of offices, 1.1 million square feet of retail space, 700 hotel rooms and from 200 to 1,680 apartments, as well as a 35-acre park.
Sitting atop what is now a golf course and BMX track, the mixed-use project's anticipated tax and other financial benefits are "staggering," Gillmor said.
The city has projected that it will receive up to $16.9 million in annual tax benefits, along with $9 million to $14 million in yearly rent revenues, once the project is up and running.
The county should benefit, too: Its annual property and sales tax benefits are pegged at up to $11.6 million, while the Santa Clara Unified School District anticipates receiving as much as $22.1 million each year in property taxes. The Valley Transportation Authority would receive up to $8 million annually in sales taxes, according to City Place projections.
Santa Clara's share would be a huge shot in the arm to the city's general fund, which has taken a $14 million annual hit since the dissolution in 2012 of the state's redevelopment agencies, Gillmor said. It will "make up the cash flow into our general fund for generations to come."
Construction costs are tagged at $5 billion, with more than 80 percent of the work to be handled by union labor. Built on landfill, the project involves the construction of a massive platform on top of which its core elements -- dubbed the City Center -- will sit: retail and department stores, hotel rooms, residential units and about 1 million square feet of offices.
"We call it our uptown," said Gillmor.
Historically, the city has lacked its own entertainment district: "Residents have to go to other cities, like Campbell, Los Gatos and (San Jose's) Santana Row," said acting City Manager Rajeev Batra. "But this will provide all those restaurants and destinations in Santa Clara, and also keep our tax revenues here."
Councilwoman Kathy Watanabe put it like this: "It creates a new destination for out-of-towners coming to Silicon Valley. Sometimes it just takes awhile for things to happen, and now it's happening."
Tuesday's approval of the project was "definitely a relief," Batra said. "It's a big milestone, obviously, and you wouldn't believe how much hard work has gone into it from all of the staff. The documentation itself -- if you saw the package, there were 3,000 pages behind the 20-page report to the council."
The idea for the project was informally floated about four years ago, Gillmor said. Founded by Miami Dolphins owner Stephen Ross, Related began talking to the city about three years ago.
Construction on the first of the project's eight phases should begin in summer 2017 "if everything lines up," Batra said.
Likewise, the City Center should be completed in five to seven years, "if not a bit sooner," said Stephen Eimer, an executive vice president with Related and comanaging partner of the project.
The construction of outlying office parks -- up to another 5 million square feet or so, he said -- will be subject to market demand and likely come online later.
One detail of note: 49ers legend Joe Montana, a limited partner in the project, expects to establish a restaurant in the City Center: "He's going to do a Montana-themed, football-themed restaurant," Gillmor said. "He will have a signature development on this property."
City Place has not been without its critics. Neighbors have voiced concerns about traffic, parking and other quality-of-life issues. San Jose officials wondered about the project's environmental impact and complained that the city will have to provide housing and services for those who work at nearby City Place.
Gillmor on Thursday dismissed San Jose's objections: "This is going to be a huge benefit to the entire area," she said. "We want our workers to work here, play here and live here, and this is the kind of development that will do that for Santa Clara, Sunnyvale and especially North San Jose."
Source: San Jose Mercury News, Richard Scheinin
http://www.mercurynews.com/business/ci_30077172/its-surreal-silicon-valleys-biggest-private-development-project
No comments:
Post a Comment