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San Jose Development Updat e

WGNA Board Meeting Willow Glen Branch Library Ma r c h 9 , 2 0 17 Agenda

● SJ economic update ● Major developments’ status and lookahead ● Downt own updat e ● BART progress ● ● Incentives/ initiatives ● Cool tools Office of Economic Development: Mission

Economic Strategy Policy Development Attraction/ Retention W or kf or ce D evel opment Arts and Culture City Real Estate A s of Jan . 1, SJ h ad :

~2 M SF+ squar e f eet of Cl ass A of f i ce under const r uct i on

815,000 SF of retail under construction (inc. Westfield)

831,000 SFindustrial under construction

3 , 116 residential unit building permits issued since July 2015

9,500 r esi dent i al uni t s pr oposed or appr oved as of Feb. 2016 ( many mor e now)

1, 70 0 hot el r ooms pl anned What ’s t he t rend?

FY16/17 FY 16/17 YTD Growth Projections: 400,000 more by 2040 (and 120K resi units) SJEconomy: By t he Numbers (www.sjeconomy.com/ indicators) SJEconomy: By t he Numbers Current Project Updat es Sant ana Row Expansion ● Expansion includes an addi t i onal 516,000 SF of office, 55,000 SF of retail, and 370 r esi dent i al units ● 700 Sant ana Row (pictured): new 284,000 SF Class A office building ● Expect ed f i ni sh: Early 2019 ● Ground broke Still to come: 258 units (Lot 12) - entitled and ready to D ecember 2016 go. 900 (226K office) entitled Ameri ca Cent er -Pa r t De u x

457,000 SF Class A office

Lar gest -ever Vi ew Gl ass installation

LEED Gold

Fut ur e expansi on capaci t y Brokaw Road Campus

116K SF u n d er construction

Tenant uncl ear … Expansion ● $600M, 650,000 SF expansi on of exi st i ng W est f i el d Val l ey Fai r ● New 150,000 SF, 3-l evel Bloomingdale’s store ● Space f or 90 new r et ai l er s ● Showpl ace I CON ci nema ( on Sant a Cl ar a si de) ● Outdoor dining and lounges ● Expect ed compl et i on i n 2019 Phase 1 under way: 357K SF Coleman Highline $14M underground tunnel to Caltrain started October.

Better connects access for pedest r i ans and cycl i st s t o t he Cal t r ai n, ACE and Capital Corridor platform, and El Cami no Real .

Retail, hotel in future plans. B a y 10 1

64,000 SF 2-story card club

174 r oom Embassy Sui t es

FUTURE: 9-story office (242,000 SF) What t o Wat ch for in 2017: Evergreen Arcadia 80 acr es j ust sout h of East r i dge M al l

344,000 SF retail

250 residential units (SFD) What t o Wat ch for in 2017: Diridon

Phase I: 490,000 SF

T ot al : 1M SF

35,000 SF retail

325 apar t ment s What t o Wat ch For in 2017: Comm Hill

First phase of 2,000 units under construction from KB Home

H uge i nf r ast r uct ur e i nvest ment from KB

1.44M SF industrial with CEQA cl ear ance on 55 acr es cl ose t o popul at i on cent er What t o Wat ch for in 2017: Camera 12 sale

Of f er i ng went out this month

Of f er s due M ar ch 30

Sale is for land only - building owned by For est Ci t y and subject to long-t er m GL .

U npr i ced What t o Wat ch for in 2017: Apple site What t o Wat ch for in 2017: BART

Ber r yessa st at i on near l y done. Opening still slated for late 2017.

Shoul d not be af f ect ed by W ar m Spr i ngs/Fr emont del ay

Fl ea mar ket si t e t o be upzoned f or mor e commer ci al /of f i ce adj acent t o station

BART Phase 2 ( t o D ownt own/Sant a Clara) EIR now out for comment

M easur e B i ncl . $1.5B f or f i nal phase Berryessa St at i on Area

Fl ea mar ket si t e r ezoned for 3,000 units in 2008

M or e commer ci al /of f i ce bei ng st udi ed f or ar ea closest to station

See SPU R r epor t f or i n- dept h l ook at neighborhood/issues Finishing t he BART line

Fi nal phase cost : $4.7B $750M t o come f r om Cap and Tr ade Fundi ng

Measure B (approved in Nov.) provides $1.5B Draft EIR now on the street. Meetings this month. Comment per i od open. Another $1.5B to come from federal “New Starts” program Station options - where to put the stations?

Downt own Updat e

~1,900 units recently built

About 5,500 high- and mi d-rise resi in planning or under construction

1.7M SF of f i ce appr oved

Si l ver y Tower s - 640 units under construction The Pi erce at SoFA: Now Leasi ng

● New 232 unit luxury residential building ● Locat ed i n t he vi br ant SoFA District ● 4,300 SF of ground- floor retail fronting S. 1st St. ● Cont empor ar y desi gn with unique ar chi t ect ur al f eat ur es

Downt own High-Rise Projects

“ Post and San Pedr o Tower ” “ Par kvi ew Tower s” 0 Post St. 252 N. 1st St . 182 Residential Units 220 Residential Units 7,767 SF Ground-Fl oor Ret ai l 14,555 SF Ground-Fl oor Ret ai l Downt own High-Rise Projects

“ SJSC T ow er s” “ The Gr aduat e” 39 N . 5th St . 300 S. 2nd St . 610 Residential Units 260 Residential Units 19,500 SF Ground-Fl oor Ret ai l 16,400 SF Ground-Fl oor Ret ai l Downt own High-Rise Projects

“Alterra” “Sobrato Block 3” 1st and Fount ai n Al l ey 150 S. 2n d St . 324 Residential Units 393 Residential Units 5,000 SF Ground-Fl oor Ret ai l 7,150 SF G r ou n d -Fl oor Ret ai l Downt own High-Rise Projects

“ Gat eway Tower ” “Greyhound Station” 470 S. M ar k et St . 70 S. Al maden Ave. ~270 Residential Units 708 Residential Units Ground-Fl oor Ret ai l 20,000 SF Ground-Fl oor Ret ai l Downt own high-rise incentive 12-story residential buildings that break ground by July 2018

50% r educt i on i n par k f ee (currently $21,400 per unit)

Reduce const r uct i on t ax by 50%( cur r ent l y about 4% of building construction value)

D ef er payment unt i l COP, r at her than due at building permit i ssuance Nort h San Jose: Ret ail and Amenit ies

St udy under way t o det er mi ne how t o dr aw i n r et ai l ameni t i es t o N or t h San Jose

W hat t ype? Locat i ons? D emand?

Gi ve us your f eedback! Tenant t rends

Medical office

W ar ehouse/di st r i but i on

Automotive-r el at ed

Food/ent er t ai nment Cit y Incent ives and Init iat ives

“So, what do you have t o of f er ?”

San Jose Rest aurant St reamlining Pilot Coor di nat es wi t h Sant a Cl ar a Publ i c H eal t h

Pr e-screens applications for problems, eliminating f ut ur e headaches

Rest aur ant s can be cl ear ed f or bui l di ng per mi t i n weeks, not months

I nf or mat i on: Pr ogr am M anager Ron D avi s, r on.davi s@sanj oseca.gov St at e Programs: Compet es Tax Credit

● Income-t ax cr edi t f or co’s t hat want t o come, st ay or gr ow i n Cal i f .

● FY2016-17: $243.3M avai l abl e

● N ext appl i cat i on per i od: M ar ch 6-M ar ch 27

● N egot i at ed agr eement based on var i ous f act or s:

○ Jobs cr eat ed/r et ai ned

○ Empl oyee compensat i on

○ Strategic importance of the company to the region/state

○ Extent of unemployment/poverty in location

● Local exampl es: Cool t ools for sit e select ion

I nt er act i ve maps f or zoning, general plan, traffic counts, downtown parking, ur ban vi l l ages, A PN s, road conditions and mor e. http://csj- mapsgallery.appspo t .com/i ndex.ht ml General Plan Zoning Weekly Project Fili ng Emai l

Get pr oj ect submi ssi ons, zonings, other permits in your i nbox ever y week.

ht t ps://www.sj per mi t s.or g/ per mi t s/gener al /emai l f or m .asp New count y t i t le record syst em

M or e sear ch opt i ons, “more Googly” in its sear ch r esul t s.

http://scccroselfservice.org/web/