March 13, 2008

City Council approves soccer stadium analysis

Votes on city pool fees, defers Coyote Valley Specific Plan actions

By Carol Rosen
Editor

City Council members spent a good part of Tuesday’s meeting discussing soccer and swimming, with members unanimously voting to accept a very detailed cost/benefit analysis for the soccer stadium and agreeing on fees for city pools.

One item on the agenda, Coyote Valley Specific Plan actions and the revised environmental impact report were deferred until the April 8 session.

Last fall, the council voted to proceed with a plan from developer Lew Wolff to rezone the industrial iStar property in Edenvale to housing allowing him to build homes that would pay for the cost of a soccer stadium on the former FMC land on Coleman Road across from the airport.

The detailed cost/benefit analysis described three scenarios, one of not proceeding, one including the conversion of the iStar industrially zoned property to residential and another converting the industrial lands to retail and office.

The economic analysis indicates San Jose’s Redevelopment Agency would garner from $5.4 million to $6.5 million annually if the stadium deal works out. However, building the new homes would pull money from the city's general fund, which faces a projected $137 million deficit over the next four years.

The loss to the general funds column of up to $1.1 million annually comes from city services that residential areas require. Industry and retail would provide more tax dollars, but redevelopment funds aren’t allowed to offset the general fund loss.

Out of the four members of the public commenting on the analysis, former city budget director Bob Brownstein, felt the report raised questions on the percentage of people attending the games. Brownstein is now policy director for Working Partnerships USA, a labor supported operation,

“It’s not clear to me how the numbers were calculated. Id’ like to get a better sense of how the mushing is done,” Brownstein said. However, "Even $2 a ticket would produce an impact on the general fund equal to half of a serious shopping center, and that would make the project a win-win.”

The report indicates the stadium would provide $62.3 million a year into city coffers through the stadium’s affect on hotels, restaurants and shops. Some of this would come through various entertainment uses for the stadium including concerts and exhibition soccer games.

With approval of the report, the council directed city staff to continue negotiating with Wolff. The proposal will return to the council in June for further discussion.

Pool fees
The council also discussed changes to fees and charges for the citywide aquatics program. City staff had suggested proposed fees of $2.25 per child and $3 per adult. Councilmember Sam Liccardo however, wanted to charge $1 per child and $3 per adult.

Liccardo’s suggestion failed 3-8, with Liccardo, Madison Nguyen and Kansen Chu for it. Instead, the city voted on fees of $2 per child and asked the staff to look into offering several free entry vouchers for children taking swimming lessons.

Councilmember Judy Chirco noted that while Liccardo’s ”heart is in the right place,” given the city’s budget problems this is not the time to start reducing fees.

New solar company
In another decision Tuesday, council members unanimously approved a $700,000 subsidy for Stion Corporation to move to Edenvale.

Mayor Chuck Reed noted his approval stating the company will further the green vision the council adopted last fall. The subsidy is expected to provide up to 25,000 new jobs over the next 15 years.

However, Councilmember Pierluigi Oliverio questioned approval given that the city already has supported three other solar companies to the area and Liccardo questioned how many will survive as the industry develops.

"Certainly this is exciting," Liccardo said. "The question I have is whether we become overly dependent on companies in the same space. There are several horses in this race to see what is the dominant solar technology."

While Stion President Chet Farris agreed that some companies may fail, he claims Stion’s product has a “unique position.”

Council members agreed to give Stion $700,000 for equipment costs and aid the company’s application for $100,000 in training funds.

Stion was founded in 2006. It plans to develop higher efficiency thin-film solar modules reducing solar panel and system costs. It currently has 35 employees and raised $15 million in capital last year for product development.