When Trammel Crow went ahead with a mixed use office and residential development in the Diridon Station Plan area without providing extra parking for the Sharks, the Sharks sued the city.   Now the city has a settlement offer, where Trammel Crow will provide $4M for the city to buy land North of the SAP Center for public parking, and to give the Sharks an option to purchase the land if the city wants to sell it in the future.

The land north of the station is land that was slated in the Diridon Station Area Plan for jobs – an innovation, R&D area. If the land stays parking, this agreement surrenders the purpose of the Diridon plan as a jobs center.  If and when developers want the land for offices in the future, the Sharks have the option to buy the land and take all the profit from office development near a major transit hub.

The city has an agreement with the Sharks to provide continuous parking in the Diridon area for most of their fans to drive, even as the city has goals to turn the area into an urban, walkable area.

Having the Sharks business stay car-centric even as the area urbanizes around it is harmful to the City. The City should work with the Sharks to reduce the need for parking, just as the City of San Francisco worked with the Giants to transition from 90% driving at Candlestick Park to 50% driving at urban AT&T park.

Also, giving the Sharks the upside if and when the parking lot turns into valuable offices is – highly generous.  Can the City make a deal where they share in the upside if and when the land is sold? The City badly needs the revenue on parks and streets and other city services.

If you want to see the City keep the mission of the Diridon Station Area Plan, and keep some of the revenue if the plan’s goals as a job center are fulfilled, send a quick note to Council with contact info below. 

And if you are in San Jose happen to be able to come down to City Hall to make public comment, the agenda will likely come up after 12 today (see agenda) , after a minimum wage discussion that might take a while. Watch on video and come down when the item is up.

The Deal according to the staff report:

Trammel Crow will contribute $4 million dollars to the City to be restricted for the acquisition of certain properties to the north of the SAP Center for the use of public parking. City will make good faith efforts to purchase these properties with the provided funds. If the City is able to acquire all the properties, the City will also lease certain adjoining SSE properties for $1 /month and construct a surface parking lot that will be operated by SSE for the purposes of public parking. It is important to note that the City Council had previously set aside funds for additional parking at the SAP Center in the General Purpose Parking Fund that can be used for the construction of a surface lot. SSE also gives the City an option to purchase the SSE properties if the City constructs a parking garage or upon termination of the Arena Management Agreement. City gives SSE an option to purchase its properties if the City decides to sell, lease or otherwise transfer the property it owns during the term of the Arena Management Agreement. The City will also make efforts to secure additional parking for SSE employee parking. Following the City’s receipt of the settlement payment, this Office will work with the Budget Office to bring forward appropriation actions for the City Council’s approval, likely as part of the 2016-2017 Mid-Year Budget Review.