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The San Jose Flea Market and the Opportunity Costs of Smart Growth Authors Sean Campion and April Mo

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The San Jose Flea Market and the Opportunity Costs of Smart Growth Authors Sean Campion and April Mo Transit-Oriented Displacement? The San Jose Flea Market and the Opportunity Costs of Smart Growth Authors Sean Campion and April Mo Cover Photos Left photo - Flickr user Canada Good. Right photo - fleaportal.com The Center for Community Innovation (CCI) at UC-Berkeley nurtures effective solutions that expand economic opportunity, diversify housing options, and strengthen connection to place. The Center builds the capacity of nonprofits and government by convening practitioner leaders, providing technical assistance and student interns, interpreting academic research, and developing new research out of practitioner needs. University of California Center for Community Innovation 316 Wurster Hall #1870 Berkeley, CA 94720-1870 http://communityinnovation.berkeley.edu May 2011 Table of Contents Chapter 1: Introduction and Background 1 Chapter 2: Methods 6 Chapter 3: Survey Results and Discussion 8 Chapter 4: Transit Village Market Study 19 Chapter 5: Recommendations and Areas for Further Study 33 Conclusions 36 References 37 Appendix A 40 Appendix B 49 Appendix C 51 Chapter 1: Introduction and Background Photo credit: sfchamber.visitortourist.info.com As California’s population continues to expand and a commercial center over its decades-long lifespan. For places like the Bay Area metropolitan region experience vendors, it has been an entrepreneurial test ground and new development pressures, land use and transportation a small business incubator (Picazo 2009), and it probably planners, economic development agencies and policy has the highest concentration of small businesses in one makers must carefully weigh the economic and location than anywhere else in Silicon Valley (Pizarro 2010). environmental benefits and costs of growth. If we focus And for shoppers, it offers a wide variety of goods and new growth in higher-density developments served by services, including produce, at low – and in some cases public transit, what might be the impacts of such “smart bargainable – prices. It is likely that a significant proportion growth” on low-income households, the racial diversity of of Flea Market customers would not be able to afford communities, and the viability of small or family-owned shopping for comparable items at other, more established businesses? In San Jose, the largest city in the Silicon Valley retail developments. high-tech industry cluster, there has long been pressure to better match housing availability – for workers of all Following announcement of BART’s plans to place a income levels – with jobs availability. Such efforts seek station at the Flea Market site, the city performed studies to reduce the time workers must spend commuting to pursuant to and produced a plan calling for conversion of and from their jobs, mitigate the air pollution and global the Flea BART station. The city, and the owner-operators warming effects of such automobile travel patterns, of the Flea Market, will need to proceed on these plans preserve greenfield lands in less urbanized locales, improve with deliberation and thought, and consider the disruptive quality of life for workers, and prevent worker productivity effects the market’s abolishment or relocation may have declines attributable to burdensome commute times. These on not only the economic well-being of its merchants, goals can, however, get buried under the counter-pressures employees and patrons, but also on the social fabric of their a city faces to retain and expand its job base, while also communities. increasing tax revenue from non-residential developments such as retail power centers or office parks (Elmer et al. This report investigates the cultural, historical and 2006). economic role of the Flea Market in the San Jose region, and the possible economic and equity impacts to both sellers Toward these multifaceted ends, San Jose has joined a and customers of its potential dissolution or relocation. It growing number of cities that are experimenting with also discusses the market potential for the future transit transit-oriented development around light or heavy fixed- village that has been planned for the Flea Market site, and rail transit stations. Over the long run, the city is looking suggests some management and policy considerations in forward to the addition of four new BART stations that light of the Flea Market’s current performance and possible will comprise the commuter rail agency’s Silicon Valley future shifts of both its economic and land-use contexts. extension into Santa Clara County. The first of these four San Jose stations will be built at the site of the current San Historical Background Jose Flea Market in the Berryessa neighborhood. In 1960, George Bumb opened the San Jose Flea Market for The San Jose Flea Market, which celebrated its 50th weekends-only business on an abandoned 35-acre cattle lot birthday in 2010, has significant historical, cultural with 20 sellers. He was in the solid waste/landfill business, and economic significance to the city, its owners, the where he was witness to the types of things people were surrounding neighborhood, and the customers and sellers discarding, and his flea market idea was inspired by the that make use of it, many of whom are low- middle- nascent swap meets in Southern California (The San Jose income, immigrant and/or minority residents of the city Flea Market 2010). From the beginning, George Bumb and region. Although by some measures, the Flea Market involved his family in the business. They helped to staff could never have been deemed a permanent land use, the first management office – which also served as a it has undoubtedly played more than a fleeting role as concessions stand for sandwiches, basic beverages and 1 candy – a Catholic school he built and operated on the Flea Eastridge Mall (to the south), Campbell/Los Gatos (to the Market site from 1978 to 2004, and eventually a jewelry south), and the Great Mall of Milpitas (to the north). stand near the main entrance of the Flea Market, American Precious Metals (Harper 1999). Institutional Context Today, the Flea Market comprises 120 acres in total, roughly The impetus for plans to repurpose the San Jose Flea 80 of which is devoted to two surface parking lots. It now Market acreage began in August 2000, when Santa Clara also operates on Wednesdays, Thursdays and Fridays, County voters approved a 30-year $0.50 transit sales tax to in addition to the weekends, and averages 300 sellers on pay for public transit capital improvements, including a weekdays and 1,200-1,500 sellers on weekends. Food op- BART extension. By 2007, after several iterations, the Santa tions have proliferated to 30 snack bars, kiosks and sit- Clara Valley Transportation Authority (VTA), got approval down restaurants offering both American and ethnic fare, on the requisite environmental review documents. The as well as roving motorized snack and beverage (including designs call for the Berryessa BART facility to feature an beer-on-tap) carts. Shoppers now can choose from a wide at-grade station, parking lots and a parking structure, and variety of goods and services on offer, from produce to col- new access roads from both Berryessa and Mabury Roads. lectibles, from engraving services to massage sessions, and Under consultation with the Federal Transit Administration from fine jewelry to home improvement tools. On week- (FTA), the VTA applied for New Starts funding, the federal ends, visitors can also enjoy live music performances and government’s primary financial resource for supporting children’s rides, and the occasional craft show, health fair locally planned, implemented and operated transit or auto display. infrastructure capital investments. The San Jose Flea Market is still family-owned and man- At the time in 2007, the Bumbs’ flea market land was zoned aged under the entity The Flea Market, Inc. More than one for agricultural use. When the family learned the VTA will hundred full- and part-time service, construction, mainte- likely need to acquire some of their property, and that the nance, security and clerical staff are employed at the Flea city’s vision was for transit-oriented housing and retail Market. Current ownership of the Flea Market is shared to be built around the station, they decided to apply for a among a few of George Bumb’s sons, and other family zoning change. One expected outcome of a zoning change members continue to own vendor stalls, work at food carts is that any acreage the family will need or choose to sell, and hold managerial positions with The Flea Market, Inc. either to VTA or to a developer, will be appraised at a higher value under a non-agricultural zoning designation Monthly vendors – those that pay monthly rent for a than under an agricultural designation. In consultation specific stall that they operate 1-5 days every week – are with the city’s planning staff, the Bumbs pursued provided with on-site inventory storage facilities. Daily amendments to the general plan and zoning ordinance vendors, who do not have a regular selling schedule, arrive that would change their flea market parcels to Planned with their wares at the start of the day and rent stalls from Development (PD) zoning. on-site management on a first-come first-served basis. Prior to this spring, the Flea Market had “free sell” days only on With word spreading that the Flea Market was to be the first weekend of every month. Now, it appears manage- redeveloped into a transit village around a BART station – ment has been experimenting with more free-sell week- but with no mention of continued Flea Market operations ends, as well as free-sell weekdays. in any of the site plans or sketches – community-based organizations began efforts to educate and organize Customer parking fees are $2 on Wednesdays and Fridays, Flea Market vendors so as to give them a voice in the free on Thursdays, and $5 on weekends.
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