A business plaza in Santa Clara, California
Franklin Square in Santa Clara. The city has long-term plans to renovate the downtown. File photo.

Santa Clara’s neglected downtown took a key turn toward revitalization in 2023, but there’s been little movement since.

Market conditions and complex policies have slowed the progress since its approval. Frustrated residents want Santa Clara to move on developing six acres owned by the city as identified in the Downtown Precise Plan. The other 21 acres of downtown are private property.

Santa Clara resident Mary Grizzle, co-chair of grassroots advocacy group Reclaiming Our Downtown, said residents want the city to request bids from developers in the area known as blocks A and B, to better understand the land’s value and what’s achievable.

“I want shovels in the ground as soon as possible,” Grizzle told San José Spotlight. “That’s what I’m fighting for now.”

Grizzle said downtown would serve as Santa Clara’s cultural heart, giving residents and visitors a distinct restaurant and entertainment hub in the city’s center.

The 27-acre downtown is bounded by Benton Street and Homestead Road to the north and south, and Lafayette and Madison streets to the east and west. The area was once Santa Clara’s historic downtown, which the city demolished in the 1960s. It directly borders the city’s Old Quad neighborhood, which has many historic homes and buildings.

City spokesperson Janine De la Vega said there are multiple economic barriers slowing redevelopment, including the high cost of construction and financing difficulties. Other projects, such as Related Santa Clara, have come to a stand still as developers try to navigate the uneasiness of potential tariffs and rising interest rates.

“The city has been taking steps to ready the six acres of city-owned property, recognizing that its redevelopment will serve as a catalyst to promote additional investment and transformation in the downtown,” De la Vega told San José Spotlight.

This graphic shows the 10 downtown blocks in Santa Clara planned for redevelopment. Image courtesy of Santa Clara.

District 5 Councilmember Suds Jain, who represents the downtown area, said he plans to ask city staff to look into what’s needed to get started once the City Council is back from its summer recess in August.

Jain worries the city-owned blocks may be affected by the Surplus Land Act, a 2019 California law that requires local governments to prioritize affordable housing on public land. It’s difficult to ensure a completely affordable housing development will have the retail space envisioned in the downtown plan. Jain said he needs more clarity on how the city can navigate state restrictions.

“People are under the impression that it’s up to the city, and it’s not really up to the city, it’s up to developers who want to develop there,” Jain told San José Spotlight. “If developers are eager to build, it depends on which blocks, because if they want to build on blocks A and B, we might have to go through a Surplus Land Act.”

Jain said the city has taken a few steps toward preparing for downtown’s redevelopment, such as not renewing leases for tenants on city-owned land within the project area.

De la Vega said the city needs to do more analyses on how to make sure the community’s vision is filled, and will be reaching out to private property owners to gauge interest in redevelopment.

Some neighbors have noticed signs that redevelopment is on the way. Taplands co-owner Matt Hartenstein said his business’ 10-year lease ran out this year, and during negotiations on a new lease, their landlord would only allow them to sign for five more years.

He wants Santa Clara’s downtown to be a focal point for the city, such as Castro Street is for Mountain View or Murphy Avenue for Sunnyvale.

“There’s no real center for the community or the spirit of the city,” Hartenstein told San José Spotlight. “To me, that’s the real reason why I’m excited about it. Of course my business would benefit from it, but I also feel that we are a part of how the city could grow. I think it’d be great for everybody.”

Reclaiming Our Downtown surveyed residents by knocking on doors and tabling at events throughout the city. Group co-chair Dan Ondrasek said a survey from 2018-19 found 85% of residents prioritized the downtown above other large developments, such as El Camino Real or Related Santa Clara. He added developers have reached out to the group and expressed interest in the area. But De la Vega said the city hasn’t received any development proposals.
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Old Quad Resident Association President Jonathon Evans said people from the neighborhood weighed in on the downtown plan as it was being formed, and want to see the city move forward. Evans said residents will likely have more to say on redevelopment of city land compared to private property.

“We’re aligned on this whole (request) thing for the city property, because we really want to see something happen,” Evans told San José Spotlight. “I don’t want to wait another 10 years before anything’s kicked off, because then that means we spent a lot of time on this precise plan for no benefit.”

Contact B. Sakura Cannestra at [email protected] or @SakuCannestra on X.

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