April 7, 2007

County board discusses development options for fairgrounds, old City Hall

Renewed calls for development signal collaborative efforts between city, county

By Ali Abdollahi
Staff Writer

The Santa Clara County Board of Supervisors voted March 27 to approve two separate proposals of possible land use options for the area encompassing San Jose’s old City Hall and the Santa Clara County Fairgrounds, respectively.

There is preliminary, yet noteworthy, collaboration occurring between the city and the county regarding the future of both properties. The collaboration is preliminary because there are still several development options being considered for both properties, but noteworthy because of the recent battles that have taken place between the city and county, especially over the fairgrounds. There was even brief discussion of a rumored swap, in which the city would take over the fairgrounds and the county would acquire the old City Hall.

County Fairgrounds
The county had hoped to partner with the nightclub and concert venue chain House of Blues in 2001 to build a 7,000-seat theatre on the fairgrounds property. San Jose had plans for building a similar concert venue downtown, and sued the city in 2004 claiming that the county would need the city’s permission to build the venue, even though the fairgrounds are on county-owned land.

The city agreed to a settlement with the county in 2006, but projected construction costs for the site had continued to rise during the seven years of planning and legal delays, necessitating a $15 million public subsidy from the city to cover construction costs. With the county facing a $238 million budget deficit, the board of supervisors voted to discontinue the project in August 2006.

Several new development options were presented at the March 27 county board meeting. The proposals, which County Executive Pete Kutras said included “no recommendations, just ideas,” included developments for residential use, commercial use, retail use, and several mixed-use combinations of the aforementioned elements.

Kutras also mentioned what he described as a “crying need for a 7,000-seat theatre” in the area. Supervisor Blanca Alvarado, whose district includes the fairgrounds, called the fairgrounds “the heart and soul of the urban core of Santa Clara County.”

“The fairgrounds are the last major public open space in the county,” said Alvarado. “It has been a gathering place for the community, multi-cultural festivals, fairs, and other family-oriented events.” Alvarado also said that identifying development options that would generate revenue for the county was “as important today as eight years ago.”

Specific development options presented for the fairgrounds included the development of 33 single-family homes along Umbarger Road, intertwining mixed-use retail and housing developments throughout the property, and developing the 14-acre Tully Road parking lot as a stand-alone housing or retail project while leaving the fairgrounds as is.

Old City Hall
With the location of old City Hall on First and Mission streets neighboring the expansive county complex, the county discussed several acquisition options regarding the property that Supervisor Don Gage called, “the property next door.”

“We have to identify what our long-term needs will be in the next 20 to 30 years, and our growth issues,” said Gage. “If we don’t purchase (the old City Hall property) we may lose the option to do so. If we need the land, then let’s go get it.”

In a further sign of cooperation between the city and the county, Ed Shikata, deputy city manager of San Jose, attended the county board meeting to answer questions. “We want to engage the county as we look at the bigger work plan, and how we can work together,” said Shikata.

Kutras said that there were a number of “red flags” that may prevent immediate use of the old City Hall, and that retrofitting the structure could prove costly. Some of the options that were presented, however, included a low-income housing development and constructing a new county office structure. The county board approved a work plan for further identifying viable development options for the old City Hall property.