November 8, 2007

Planning staff updates council on new soccer stadium

Unanimously approve Willow Glen Spur Trail

By Carol Rosen
Editor

There were few questions during Tuesday’s Planning Staff update to build a soccer stadium near the airport. When the time came, the council voted unanimously in favor of continuing the project and to allow the development proposal to appear separately from other development plans.

The council earlier this year agreed that all development measures would come before the council on a specific day. But Chief Development Officer Paul Krutko said his group is not certain they can meet the March date. “It’s a complicated project and we need to give [the] Planning [Department] as much time as they need,” he said, adding that two separate environmental analyses must be completed further complicating the process.

The plan, presented last summer by Lew Wolff, a developer and owner of the San Jose Earthquakes soccer team, asks the council to rezone nearly 75 acres in Old Edenvale, the iStar property, to housing from industrial/commercial. Wolff plans to use the money generated from a housing development to build a 15,000- to 20, 000-seat soccer stadium along with a hotel, retail and parking along Coleman Road, across from the airport. The city-owned land was purchased from FMC Corporation and its value has increased. The city would not pay for the stadium, but Wolff would pay to lease the land.

This is the first time since taking office that Reed has agreed to convert industrial/ commercial land to housing. The difference appears to be in the possible numbers generated from the swap, and the fact that the city will not have to pay for construction or maintenance.

Krutco made several plugs for the benefits of the plan. He said the idea will generate jobs, capital investment, property tax, transient occupancy tax, ground lease revenue and sales tax. “The potential proceeds with the transaction means the value will be more than the city originally paid for the property,” Krutko said.

“Soccer contributes to knowing the way to San Jose,” Wolff said. He added that he plans to work with the city to ensure that San Jose “doesn’t get stuck [with paying any bills].

While council members still had questions, for example Councilmember Madison Nguyen questioned whether the housing market would be stable enough to generate the funds needed—approximately $80 million—to build the stadium and complex given that it currently is in the doldrums.

Wolff said the $80 million might be on the higher end. The housing market typically moves in cycles, he added, and may be on its way up when the homes are built.

When Councilmember Sam Liccardo further questioned the department’s need for another date, Krutko answered “we want to bring this forward in a deliberately open, transparent way. The staff has concerns about getting through the environmental process.”

Reed expressed solid support for the plan. He noted the different conditions between the HP Pavilion and Convention Center models. “I prefer the HP model. The important part is how we structure the relationship. We are moving in a good direction.”

Five members of the public came forward to discuss, with several agreeing with the project.

Pat Dando, president and CEO of the San Jose/Silicon Valley chamber of Commerce told council members the plan will “make the city a better place. “We’ll see the same return that the HP Pavilion has brought; jobs, money and great community value. The challenge before you is having the wisdom to recognize an extraordinary benefit,” she said.

One speaker suggested it might not be a good idea to take the land from the airport for possible expansion down the road. However, Aviation Director Bill Sherry said the land had been purchased when the airport expansion was a much larger plan. “Since then we have rephased and redesigned the project and that land isn’t needed.

"This is the most extraordinary opportunity this city has ever had or is going to have," said Don Gagliardi, president of Soccer Silicon Valley, a booster group. He noted the “committed fan base, It’s important to many in San Jose and across the Bay Area,” he said.

Willow Glen Spur Trail
There was only positive support for the Willow Glen Spur Trail when Councilmember Pierluigi Oliverio introduced the measure. He noted that others in the area, most notably County Supervisors Blanca Alvarado and Ken Yeager, indicated their support, and that the trail—also called the Three Creeks Trail—would connect Districts 3, 6 and 7.

With council members agreeing that buying up these railroad parcels will add to the city’s Green Vision as well as providing additional quality of life to residents along the routes, it wasn’t too hard to see that the measure would be passed unanimously.

In fact it was Nguyen who gave it a big push. “This measure is not something that just can be enjoyed by affluent neighborhoods, it allows lower and middle class residents the same advantages of fresh air and exercise in a beautiful environment,” she said. “Trails such as these benefit all citizens.”

Nearly 15 members of the public spoke in favor of the idea.

“I’m supporting the measure,” said Reed. “It’s very important. I’d like to see a trail connecting Lexington Dam with Anderson Reservoir. I look forward to being on this trail soon.

Just prior to the vote, Oliverio asked if there were any laws against a donor coming forward with money and asking the trail segment to be named for that donor. City Attorney Rick Doyle announced there are “no legal prohibitions,” so anyone who wants to name a trail just has to come up with the money.