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Santa Clara and San José Reach Settlements over City Place and Santana West Dispute


The Cities of Santa Clara and San José have reached settlement over their disputes related to the planned City Place and Santana West developments. The settlement agreements will allow both projects to begin construction, while also investing in affordable housing and traffic improvements in both cities.

Both projects are near boarders the two cities share. City Place will be located across the street from Levi’s Stadium—5155 Stars & Stripes Dr., Santa Clara. Santana West is to be located within the Valley Fair/Santana Row Urban Village—on the corner of Winchester Boulevard and Olsen Drive in San José.

Santa Clara Mayor Lisa Gillmor and San José Mayor Sam Liccardo released the following joint statement on the settlement: “We’ve reached a fair settlement that will benefit both of our cities’ residents. In addition to allowing these important projects to move forward, this settlement will help our two cities better address the significant affordable housing and traffic congestion problems gripping our region and provides assurances to continue to provide high quality of life for our residents, employees and visitors. We’d like to thank the dedicated City employees from both of our organizations, as well as the City Place and Santana West representatives, for their hard work to reach an equitable resolution to these disputes.”


Among the key elements of the two settlement agreements reached last week:

In regard to Santa Clara’s City Place development, San José agreed to dismiss its appeal of a November 2017 judgment by San Mateo County Superior Court Judge Marie S. Weiner that upheld the City Place Environmental Impact Report (EIR). Related Companies—the City Place developer—will pay San José $4.5 million for the first phase of the project for traffic improvements in North San José; up to $10 million, less credits, for first phase traffic improvement expenditures as the second phase of the project commences; and $5 million in 15 years, reduced partially or entirely by the production of both market rate and affordable housing in Santa Clara.

The settlement does not require Santa Clara to build housing, nor does it create any financial obligation for San José. Both cities have agreed to meet regularly to discuss development and traffic issues—particularly those in North San José that may arise as San José considers more housing developments in the area.

And when it comes to San José’s Santana West development, Santa Clara agreed to dismiss its challenge of the project’s EIR that was scheduled to be heard by Judge Weiner on Jan. 16. The settlement requires investment of traffic improvements in San José totaling approximately $2.5 million before the issuance of occupancy for the first 300,000 square feet of rentable space; $1.2 million for Santa Clara traffic improvements before the issuance of occupancy for the first 300,000 square feet of rentable space; $5 million payment to Santa Clara upon issuance of a grading or building permit for the site, or by July 1, 2022, that will be used for transportation and affordable housing in Santa Clara; payment of a portion of Santa Clara’s attorney’s fees estimated at $145,000; and guarantee that any traffic impact fees that San José waived for this, or other developments affecting traffic in Santa Clara, will be replaced with alternative funding by San José.

The two cities agree to work together to address other issues such as traffic in Stevens Creek corridor.

The settlement agreements were finalized on Friday. San José has dismissed its City Place appeal and Santa Clara has dismissed its Santana West lawsuit.

Note: This press release has been edited for length and clarity.


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