The Santa Clara City Council defeated a motion to swap land with a developer to build a new city hall on land formerly owned by a local tech giant.
In a split vote, the council failed to approve a proposal to enter into an exclusive negotiating agreement (ENA) with Valley Oak Partners (VOP) to trade land at the city’s current city hall location for land formerly owned by Oracle.
The proposal would have seen the city trading 10 acres of land at its city hall location for 27 acres at the site of the former Agnews Hospital, located at 4220 Network Circle. VOP would use the land for the development of 584 market-rate apartments.
“We are looking at an exchange in which the city would possibly acquire and reuse portions of the Agnews campus for future civic operations, adaptive reuse of the existing structures on the site for office employees, preservation of historic resources and expanded civic functions at the site,” said Elizabeth Klotz, assistant city manager. “In return, the exchange would allow [Valley Oak Partners] to develop housing on the current civic center site.”
Many worried the site’s historic designations could prove to be a problem for the city. Several council members said they were unsure about the ENA.
City Manager Jovan Grogan emphasized the need for the council to pursue a new city hall, adding that the city estimates spending $18 million over the next 10 years leasing space for city hall employees.
Although the ENA wouldn’t have obligated the city to pursue a particular course of action, the council still felt uncomfortable with it.
Mayor Lisa Gillmor said the site was prematurely categorized as surplus land before “meaningful public planning” could take place, calling the process “backward.” She said the city hasn’t “done the basics.”
“We are jumping through hoops for a bad real estate deal,” she said.
While nobody disputed the need for a new city hall, some council members saw the land swap as a bridge too far.
Council Member Suds Jain called city hall “dilapidated” and “a mess.”
Public commenters also largely opposed the move.
“The community was never asked whether city hall should move, whether the civic center should be redeveloped, or what alternative should exist,” said David Kertes. “The public should help shape the vision before the deal structure is created, not after. The city is granted exclusivity far too early.”
While the council defeated establishing an ENA with VOP, it instead voted to establish a citizens advisory committee and do a needs assessment of city hall.
Council Member Kevin Park was the lone dissenting vote on establishing the citizens advisory committee. He said he worried that establishing the committee ahead of other work “pulls away from cohesive design” and that it amounts to “creating priorities in isolation.”
Council Member Kelly Cox was absent.
Santa Clara City Council Consent Calendar Spending
The council approved the following spending via the consent calendar:
- A $10.3 million contract with MCK Services, Inc. for street rehab and pavement maintenance.
- A two-year $766,100 contract with Alliant Insurance Services Corporation for insurance broker and services.
- A $564,194 contract with Colony Landscape and Maintenance, Inc. for thatch removal at the Youth Soccer Park.
- A five-year, $2.29 million contract with Univar Solutions USA for the supply and delivery of bulk chemicals.
The next regularly scheduled meeting is 7 p.m. Tuesday, May 26, in the Council Chambers at City Hall, 1500 Warburton Ave. in Santa Clara.
Members of the public can participate in the city council meetings on Zoom at https://santaclaraca.zoom.us/j/99706759306; Meeting ID: 997-0675-9306 or call 1 (669) 900-6833, via the City’s eComment (available during the meeting) or by email to PublicComment@santaclaraca.gov
Contact David Alexander at d.todd.alexander@gmail.com
Previous Santa Clara City Council Posts:
Santa Clara Approves Bonds to Fund Below-Market Housing Project
Santa Clara Updates Fee Schedule
Super Bowl, World Cup Reimbursements Flow Back to the City
Surveillance Contract Approved but not Funded
