The city council of the City of San Jose voted Tuesday 11-0 to approve the sale of of five former redevelopment properties near Diridon Station to Mountain View-based Google for $67 million.
The properties slated for the sale are located at: 8 South Montgomery Street, 105 South Montgomery Street, 510 W. San Fernando Street/102 S. Montgomery Street, 150 South Montgomery Street, and 645 Park Avenue.
According to the terms of the compensation agreement, as outlined in a release by the city, the sales price reflects an average price of approximately $237 per square foot. The price was determined based upon appraisals conducted by both the City and County.
“This Compensation Agreement ensures that our taxpayers receive 2 ½ times what we originally paid for these properties and, just as importantly, it allows us to advance discussions about how we can create a vibrant, architecturally iconic, transit-focused village around Diridon Station,” said Mayor Sam Liccardo in a statement. “A proposed Google development in Downtown San Jose would generate millions in tax revenues for critical City services and can serve as a model for a more sustainable future. I look forward to engaging with our community in a robust discussion about how we can realize our shared ambitions for our city.”
With last night’s approval, the City Council, County Board of Supervisors and twelve other taxing entities will commence Compensation Agreement that will allow for the properties to be transferred to the City of San Jose to facilitate development in the Diridon Station Area. In June 2017, the City of San Jose entered into an Exclusive Negotiating Agreement with Google over the potential sale of publicly-owned lands near Diridon Station, as Google explores a potential 6 million square foot mixed-use, transit-oriented office development in the area.
While the compensation agreement serves as an early milestone, it represents just the first of many steps that must be taken in the months and years ahead in the exploration of a potential Google development in Downtown San Jose, according to the city’s statement. In particular, the parties must still discuss and negotiate the terms of a purchase and sale agreement for all of the various publicly-owned properties Google is interested in purchasing.
The next steps now involve sending the agreement to the Successor Agency Oversight Board for approval on February 22nd. At the same time the City will also be launching its community engagement process to provide community input and feedback on Google development concepts