A Downtown Concept Plan for the future redevelopment of a portion of central Santa Clara has been under consideration by the City Council for several years. The City Council has discussed it and heard from the public at several meetings. A 2005-07 City Council Goal was to "develop a timeline and a plan for private investment in downtown revitalization." A 2007-09 Council goal sustained this commitment to "achieve progress on downtown revitalization through selection of a master developer."

The area under discussion is bordered by Benton Street on the north, Lafayette Street on the east, Homestead Road on the south, excluding the University Plaza, Park Central (Prometheus) Apartments, and Palmer Chiropractic Clinic properties on the west by Jackson Street. Properties within the plan area are currently owned by the City of Santa Clara and Santa Clara University, and total approximately 7.3 acres.

The Concept Plan was developed by a committee of community representatives who worked with City staff and a consultant to analyze options and present to the City Council recommendations for how this area should be redeveloped.. The plan was presented to the Planning Commission and the Historical and Landmarks Commission before a Council public hearing which occurred in May 2004.

"A concept plan sets the community's vision for an area so that private developers know the framework of what we want to happen in an area," explained former City Planner Art Henriques. "It is the first step in the public process with many more opportunities for people to comment on plans as they evolve and become more specific."

The future vision for this area of Santa Clara's downtown includes the construction of 125,000 to 150,000 square feet of retail and eating/entertainment establishments, and approximately 50,000 square feet of convertible loft space incorporated into 350 to 400 housing units with associated parking. New buildings could be four floors of residential above retail and up to eight floors at the intersection of Franklin and Washington Streets (see next paragraph). At least one parking structure is being contemplated.

The early committee recommended that streets in the downtown area be changed. Washington Street is proposed to be reintroduced through this two-block area and Franklin Street would be extended across Lafayette Street to the back of the University Plaza property, so that they would intersect. Both would be downtown streets with retail on both sides and on-street parking.

The City Manager was directed to:

• Prepare a report on the Redevelopment Agency's financial ability to pursue the Downtown Revitalization Project as well as the implications of the long-term leases that are currently in place on City property.
• Contact the involved property owners and leaseholders to test their interest and capability to partner in this project.
• Review the current contract and budget with the economic consultant and return to the Agency if an expansion of the contract is needed for upcoming phases of this project if additional tasks and resources are necessary.
• Engage the economic consultant in a complete financial feasibility analysis of the Plan. Staff is continuing to work on this Council goal.

Staff requested qualifications from interested parties in order to select a master developer that would have the capability to implement this $250 million residential/commercial mixed use project. Six proposals were received; one subsequently withdrew. Staff interviewed five development companies in February 2007, considering such factors as demonstrated successful experience in all necessary areas, evidence of financial capacity and track record in securing financing for projects of this scope, background and accomplishments of key members of the proposed development team, and quality and responsiveness to the Santa Clara Redevelopment Agency's "request for qualifications" submittal package. Two of the interviewed firms, CIM Group and Summerhill/Highland, stood out in the critical areas of mixed-use development experience, financing capability, and the overall strength of their development team to be committed to delivering the project. At the April 3, 2007 City Council meeting, the Council/Agency approved staff's recommendation to have these two development companies move forward into the Downtown Revitalization Project Request for Proposal (RFP) stage in the selection of a Master Developer for the Downtown.

In January, 2008, the CIM Group withdrew from the RFP process due to their development commitments in other areas, and also due to the unsettled financial, housing and retail markets. In addition, Summerhill/Highland indicated that these same uncertain market conditions would not allow them the ability to produce a long-term financial pro forma for the Downtown Project that they or the City could rely on.

At their May 13, 2008 meeting, the Council approved holding the Request for Proposal process in abeyance for a period of one year. Staff will return to Council in July, 2009 with a recommendation for how to proceed through the Master Developer Selection Process. It is anticipated that market conditions and the economy will have settled allowing this vital project and City priority to proceed.

More information is available at the Planning Division Office at City Hall, 1500 Warburton Avenue.