The Santa Clara Valley Transportation Authority (Santa Clara VTA) is moving forward with a plan to relocate its headquarters and other satellite offices to one consolidated space in downtown San Jose, Calif., after a thorough process and economic analysis. Funding approved for the move, through the sale of bonds, will also be applied to facility improvements at all Santa Clara VTA divisions throughout Santa Clara County focused on workers and the workplace environment.
The Santa Clara VTA Board of Directors voted to approve the purchase terms for the new building in a deal that leverages the distressed nature of the current real estate market.
“In an effort to be good stewards of taxpayer funds, we are fortunate to be able to take advantage of the current buyer’s market and at the same time help fill in vacant space in Downtown San Jose to shore up the vibrancy of our county’s largest city,” said Director of Santa Clara VTA Real Estate and Transit Oriented Development Jessie O’Malley Solis. “Being able to secure more funding for workplace improvements at other VTA locations is paramount in this deal.”
The current Santa Clara VTA headquarters was designated by the board previously to be leased for transit-oriented development. Revenues to the agency from leasing that land could be up to $1.5 billion over time.
Overall, this action will provide a variety of benefits for the citizens of Santa Clara County. The purchase will allow Santa Clara VTA to save money in the long term by taking advantage of the depressed real estate market and prevent VTA from having to make major necessary improvements to its existing headquarters. It will also potentially create new housing located near a light-rail station. It will also create a new and dedicated funding stream for transit services through the lease of the existing property.
Santa Clara VTA will move forward with negotiations to secure the purchase of 488 S. Almaden Blvd. in the next 30 to 45 days, with a potential move-in date in 2026. A second site has been identified if negotiations for the first choice are not adequately beneficial to Santa Clara VTA.
