Downtown West Development Agreement

Latest News AND UPCOMING EVENTS

The City is currently working on the selection process for the initial members of the Community Stabilization and Opportunity Pathways Fund Commission. Please visit www.sanjoseca.gov/FundCommission for details!

Background

On May 25, 2021, the City Council approved Google’s proposed Downtown West project, including this Development Agreement. The Development Agreement addresses the Council’s top priorities and other topics important to the community, as expressed in 2018 and reinforced through extensive community engagement since then, including:

  • affordable housing

  • anti-displacement

  • economic and educational opportunities

  • parks and open space

  • transportation

  • environmental sustainability

  • business terms, such as the length (30 years), vested project approvals, and timing of delivery

KEY milestones

  • On April 6, 2021, the City released the staff-recommended Draft Development Agreement for the Downtown West project, along with this Info Memo that provides a summary and background information. The release of the Draft Development Agreement marked a key milestone for the project, following adoption of a Memorandum of Understanding (MOU) in 2018, application submittal in 2019, and release of the Draft Environmental Impact Report (DEIR) and Downtown West Design Standards and Guidelines (DWDSG) in 2020. The City conducted public engagement on the Draft Development Agreement, as described below.

  • On April 28, 2021, the Planning Commission unanimously approved staff’s recommendations that the City Council approve the Downtown West project and Amended Diridon Station Area Plan (DSAP).

  • On May 17, 2021, staff posted this Supplemental Memo to provide additional information related to the Development Agreement and staff recommendations on the Community Benefit funds that were unallocated in the Draft Development Agreement.

  • On May 25, 2021, staff took the Downtown West project, along with the Amended Diridon Station Area Plan (DSAP) and Diridon Affordable Housing Implementation Plan (AHIP), to City Council for approval. It went into effect on July 9, 2021.

  • Since project approval in May 2021, Google has fulfilled its initial community benefit commitments in advance of the deadlines, including the first $3 million early payment and transfer of parcels to the City for affordable housing development.

  • In August 2021, Council approved allocation of the first $3 million community benefit payment from Google - see this staff memo for details.

  • On March 1, 2022, the City Council accepted staff’s recommendation on how to spend a $4.5 million community benefit payment from Google. See this staff memo for details. This memo also outlines the set-up process for the Community Stabilization and Opportunity Pathways Fund Commission.

  • The City held a virtual community meeting on May 2, 2022 to provide an update on the process for setting up the new commission and an overview of Exhibit H, followed by discussions to gather feedback and ideas. A second virtual meeting on June 27, 2022 incorporated feedback from the first. Staff considered the input as it drafted the proposed ordinance to establish the new commission.

  • On Wednesday, August 10, staff presented the Annual Compliance Review of Development Agreements at an Administrative Hearing of the Planning Commission. This included a brief update on the Downtown West Development Agreement. The staff report documents how Google is in compliance with the terms and obligations. See the agenda for more information.

  • On Tuesday, August 16, the City Council adopted the ordinance to add the “Community Stabilization and Opportunity Pathways Fund Commission” to Chapter 2.08 of the Municipal Code. See the materials for item 8.1 here.

What are Development Agreements?

Development agreements are common for large, complex development projects that require many years to be constructed. Such agreements serve to provide both the City and project applicant with certainty about the rules, regulations, and responsibilities that govern the project, as well as establishing vested project approvals, such as design guidelines, traffic capacity, affordable housing, parkland, community benefits, etc. In the case of Downtown West, the agreement also includes a significant community benefits package.

Staff provides annual reports to the Planning Commission on the status of all development agreements in the city.

Community Benefits and Shared Goals

The community benefits in the Development Agreement include: additional affordable housing that exceeds the City’s baseline requirements and supports the 25% goal for the Diridon Station Area, a new Community Stabilization and Opportunity Pathways Fund, and an early payment to the City to support job readiness and anti-displacement strategies.

The Community Stabilization and Opportunity Pathways Fund will provide grants for programs serving low-income residents to address the root causes of displacement and economic mobility and support equitable outcomes. The Development Agreement outlines an innovative model for putting decision-making about grants in the hands of local residents and leaders.

While the Development Agreement advances many shared goals and top community priorities, it is just one tool for project implementation. The other project documents, such as the Draft Environmental Impact Report and Downtown West Design Standards and Guidelines, also support the shared goals. The project will result in substantial benefits to the public through not just community benefits, but also through meeting City requirements, environmental mitigations, and discretionary project features.

PUBLIC ENGAGEMENT ON THE DEVELOPMENT AGREEMENT

On April 6, 2021, the City released the staff-recommended Draft Development Agreement for Google’s proposed Downtown West project, along with this Info Memo that provides a summary and background information. The City held a meeting of the Diridon Station Area Advisory Group (SAAG) on April 14, 2021 and a Community Meeting on April 17, 2021 to discuss the Draft Development Agreement (dated April 6, 2021). The City also offered an online comment form on this website. Staff has provided all comments received to the Planning Commission and City Council, for their consideration.

Additional Resources and shortcuts

Project Websites:

Additional information on the engagement process: