Item 8.1:
Allocation of Community Benefit
Payment from Google
Tuesday, March 1, 2022
Nanci Klein, Director of Economic Development and Cultural Affairs Lori Severino, Assistant to the City Manager
Background
• May, 25 2021: City Council approval of the Google’s Downtown West project o Development Agreement outlines up to $200 million in Community Benefits, including $7.5 million in early payments to the City
o Council approved the allocation of the early payments by category (Supplemental Memo dated May 17, 2021)
• August 2021: Council approved specific programs for the first payment of $3 million
• December 2021: Google made the second payment of $4.5 million in advance of deadline (subject of this Council item)
Approved Allocations (5/17/21 Supplemental Memo)
$4.5 Million of Early Funding
$3.25 Million: Scholarships and Job Training (including scholarships/training for at-risk youth/ adults; childcare to support workforce participation) $1 Million: Neighborhood Programs to Support Economic Recovery/Resilience (in and around the Diridon Station Area)
$250,000: Funding to Initiate Community Stabilization and Opportunity Pathways Fund, including first Five-year Strategic Plan (Governance/Management)
Staff Recommendation for the $4.5M
Program Amount
San José Aspires program $1,500,000
Paid work experience and occupational skills training program $625,000 Childcare subsidies for training program participants $600,000 College and career pathways coordinator $525,000
Gardner neighborhood programs (specifics to be determined through outreach process) $1,000,000
Community Stabilization and Opportunity Pathways Fund set-up work $250,000 Total $4,500,000
Supplemental Memo, 2/25/22
• Google has agreed to make the first contribution to the Fund earlier than specified in the Development Agreement.
• Specifically, they will make a $15 million contribution to the Fund within 120 days of starting construction on the first office building (rather than at its completion).