After extensive negotiations with Google, the City of San José has published a recommended draft Downtown West Development Agreement. The Agreement establishes a community benefits plan that Google will fund to provide specific programs, services and opportunities to residents of San José. The dollar value of these community benefits is $200 million, targeted towards creating economic opportunity via training, education and jobs, and minimizing displacement, with a focus on those most in need.  

 In the next six weeks, the City Manager, Planning Commission and City Council will be reviewing the staff-recommended draft development agreement and holding public hearings. A meeting with the Station Area Advisory Group (SAAG)will be held in advance of the public hearings to consider the agreement together with the proposed project’s Environmental Impact Report and the Downtown West Design Standards and Guidelines. Approval of these documents by Council would allow Google to plan for construction on the approximate 80-acre site. Over the coming years, Google envisions constructing: 

 7.3 million square feet of office space; 

• 500,000 square feet of retail, cultural, and educational space; 
• 4,000 housing units, and 
• 15 acres of parks, plazas and open space. 

The community benefits identified in the agreement  are consistent with the 2018 Memorandum of Understanding (MOU) between the City and Google and address the following priorities that were consistently expressed by community members over more than three years of community outreach conducted by the City and Google: 

Affordable Housing, Community Stabilization, and Economic Opportunity  

The Downtown West project exceeds the Citywide requirements for affordable housing and supports the goal for 25% affordable housing in the Diridon Station Area through land dedication, use of commercial linkage and inclusionary housing in-lieu fees. and   a range of affordable housing for people of extremely low and moderate income, as well homeless.

Community benefits include a Community Stabilization and Opportunity Pathways Fund. This provides resources to “minimize displacement from rising costs” (community stabilization) and to “maximize opportunities for youth and adults to participate in job opportunities” through training education and support (opportunity pathways).

 The Fund would provide grants for communities that have historically been affected by structural racism and are most vulnerable to displacement, including East San José and the Downtown. In determining the allocation of funds, the process is proposed to address the root causes of displacement and economic mobility and advance racial equity. 

The Fund would provide “Community Stabilization” grants to: 

• Prevent displacement and homelessness through the preservation of existing affordable housing;  
• Increase services and shelter for people experiencing homelessness; 
• Pursue new models of community ownership; and
• increase protections for low-income renters.  

Regarding maximizing economic opportunities, there was general concurrence on the high importance of helping San José residents of all skill and educational levels prepare for and secure good-paying jobs. Accordingly, “Opportunity Pathways” grants would include: 

• Programs and services related to adult and youth occupational skills training;  
• College/post-secondary scholarships;  
• Career exploration for middle and high school youth;  
• Early childhood education; and  
• Small business and entrepreneurship support.  

The Downtown West project will contribute to the Fund as office space is constructed., generating up to $154M if the commercial office capacity of 7.3 million square feet is fully built out. For example, for every million square feet of office that is completed, the project will contribute $21.2M to the Fund. The recommended structure of the Fund features a third-party fund manager and a community advisory committee, with City oversight and support. The committee would be comprised of local residents with lived-experience of displacement, under-employment and homelessness; direct service providers; and technical experts.  The Fund structure is intended to put decision-making into the hands of local leaders and residents. The Committee will determine the grants that are made by the Fund.

“We are immensely proud and excited to offer this community-based model for the Fund,” said Nanci Klein, Economic Development Director for the City of San José. “The Fund will, most importantly, focus on equity. The Fund will be guided by metrics and data and will provide technical expertise that empowers impacted residents.” 

Google has also committed to advance economic opportunity by using progressive hiring practices, prioritizing the hiring of local residents, providing opportunities to local businesses, and offering programs that connect their employees to local youth and adults.

Community Benefits Value and Timing

The table below summarizes the value of the Community Benefits and the timing of their delivery. Some community benefits would be delivered early in the project’s multi-year schedule; others are tied to the development of office space and would be delivered over time. 

* “Final Approval” means following City Council approval of the project documents and resolution of any legal challenge to those approvals.

“No other private project in the history of this City has come close to the potential community benefits that we expect from Downtown West,” said Economic Development Director Nanci Klein. “In working on the Google Project and Development Agreement, scores of City staff across our departments have been involved. We have analyzed and improved the project with the goal of maximizing City resources and the quality of life for our residents for decades to come.” 

Next Steps

The next steps in considering the Development Agreement is a presentation at the Station Area Advisory Group (SAAG) meeting on April 14 and a Community Meeting on April 17. The agreement and full project package are scheduled to go before the San José Planning Commission on April 28 and will be presented to City Council, tentatively scheduled for May 25. 

 Find more details at the community engagement site and the City of San Jose Planning Department's Google Project page.