Memorandum — San Jose City Council, April 29, 2025

HONORABLE MAYOR AND CITY COUNCIL
March 25, 2025
Subject: Adoption of a Park Master Plan, Approve a Turnkey Parkland Agreement, and Adoption of an Official Park Name within the “0 Seely Ave Mixed Use Project”

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SUMMARY AND OUTCOME

Approval of the Park Master Plan, Turnkey Parkland Agreement, and adoption of the park name will facilitate the design, construction, future acceptance, and official naming of a new chartered public park and the payment of Parkland Fees.

BACKGROUND

On August 13, 2024, the City Council
1 approved a private development project
(Development) that allows 1,472 residential units (154 townhomes and 1,318 apartment units in four multi-family buildings), ground-floor retail space, a domestic water well, and a public park to be constructed on a 22-acre site located on the northeasterly corner of Montague Expressway and Seely Avenue (0 Seely Avenue; APNs: 097-15-033, 097-15- 034, and 097-66-004) in North San José in Council District 4. The Development will be constructed in several phases over time. The 2.5 gross acre park site is located along the northeast side of Seely Avenue, approximately 500 feet northwest of Montague Expressway (Attachment A – Location Map).

Existing recreational facilities near the site include:

• Iris Chang Park is approximately 0.33 miles northwest of the Development site. It provides passive recreation features such as gardens, public art, and walking paths.

• The Coyote Creek Trail is approximately 0.11 miles to the northeast and provides access to the Coyote Creek Trail from a staircase within Iris Chang Park. The Development site does not include any direct trail access due to lack of support from outside agencies to construct new staircases near the levy. Aside from the trail, this linear park chain does not offer any other active recreational amenities.

• River Oaks Park is approximately one mile to the northwest of the development site. It has active recreational elements that include: a basketball court, tennis courts, public restrooms, playgrounds, picnic areas, and a large lawn.

The property where the Development will occur is an existing historic farm associated with the Sakauye family, who for two generations farmed and owned the land. Notably, Yuwakichi and Tamee Sakauye and their children, including Eiichi Edward Sakauye, Kenji, Kimiko, Ayako, and Isao Sakauye, lived and managed the orchard farm until they were among the many Santa Clara County residents of Japanese descent interned during World War II (1942 to 1945). At that time, it was the policy of the U.S.

1 August 13, 2024 City Council Agenda with Actions:
https://sanjose.legistar.com/View.ashx?M=M&ID=1213452&GUID=F3D520DC-7EF3-43EF-A0A4-DEEEEFADC2BD related to Resolution Nos. RES2024-297; RES2024-298, RES2024-299, and Ordinance No. 31115.

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government to incarcerate people of Japanese descent, including U.S. citizens, in camps in reaction to the Pearl Harbor attacks. Eiichi Edward Sakauye (and his family) were among the people interned in a camp located at Heart Mountain, Wyoming. Mr.

Sakauye wrote Heart Mountain: A Memoir of the Japanese American Incarceration which tells the story of being interned at the Heart Mountain Relocation Center in Wyoming. In the book, Mr. Sakauye reflects on the challenges and hardships faced by him and his family during that period, providing a powerful and personal account of the injustices they experienced. It’s an important contribution to the understanding of the Japanese American internment during World War II. He also wrote Japanese American History: An A-to-Z Reference from 1868 to the Present which is an extensive guide that covers key events, people, places, and themes related to the history of Japanese Americans.

During Mr. Sakauye's internment, the neighboring farm owner, Edward Seely, cared for and protected the farm from being seized or ravaged. Mr. Seely did this because he wanted to repay the Sakauyes for caring for his mother and the Seely farm while Seely was deployed during World War I. This act enabled Mr. Sakauye to regain his land and business after his release from the internment camp. The Sakauye family continued to work the land until Mr. Sakauye’s death in 2005.

The existing project site including seven structures and the associated landscape including fruit trees, planted rows of vegetables, and dirt roads, is eligible for listing on the California Register of Historic Resources as a historic district and the San José Historic Resources Inventory as a Candidate City Landmark District due to the association with Japanese farming in Santa Clara Valley from ca. 1907 to 1941, association with farming in the Santa Clara Valley from ca.1900 to 1940, and the association with Eiichi “Ed” Sakauye. The existing 1920 “Sakauye house” is individually eligible for listing on the California Register of Historic Resources and a Candidate City Landmark due to its association with Eiichi “Ed” Sakauye and Spanish Colonial Revival architectural style.

On June 5, 2024, the Parks and Recreation Commission
2 recommended naming the
park site “Eiichi Edward Sakauye Park” and asked for historical design elements to be included in the park. During the August 13, 20243, City Council meeting, the City Council directed staff to continue discussions regarding design of the park to potentially preserve part of or all the “Sakauye House” on the existing site or relocating the structure to History Park in San José. It was later determined that History Park is the preferred location to safeguard the structure and to avoid potential neglect due to the costs associated with maintaining a historic building in a public park (discussed again in

2 June 5, 2024, the Parks and Recreation Commission Agenda:
https://www.sanjoseca.gov/home/showpublisheddocument/112516/638530256797430000 3 August 13, 20243, City Council Agenda: https://sanjose.legistar.com/MeetingDetail.aspx?ID=1213452&GUID=F3D520DC-7EF3 - 43EF-A0A4-DEEEEFADC2BD&Search=

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the Analysis section below). The park design will include interpretive elements to communicate and reference the site history.

ANALYSIS
Turnkey Parkland Agreement
The Development is subject to the Park Impact Ordinance (San José Municipal Code Section 14.25) and Parkland Dedication Ordinance (San José Municipal Code Section

19.38). Under these ordinances, residential developers are obligated to either dedicate land to the City, construct recreational improvements on public facilities, pay in-lieu impact fees (parks fees), or a combination thereof. Per these ordinances, the overall development is obligated to dedicate 10.76 acres of parkland to the City (parkland obligation).

The Turnkey Parkland Agreement is between the City of San José, SummerHill Epic Way LLC (Townhome Developer), and Seely Development Partners, LLC and Trimble Building A Holdings LLC (Apartment Developer a.k.a. the Hanover Company), a Delaware limited liability company. The 2.5-acre park site is currently owned by the Apartment Developer (Hanover Company), who will design, construct, and dedicate the completed park site to the City.

Since the Development will be constructed in phases over time, the Turnkey Parkland Agreement outlines how the overall development, and each phase of development, will meet its parkland obligation which is to dedicate 10.76 acres of land to the City or pay $38,842,000 in parkland in lieu fees. The Development will meet its parkland obligation by: 1) designing, constructing, and dedicating the fully improved 2.5-acre public park site to the City (worth $19,910,309 in park fees); and 2) paying remaining park fees ($ $11,145,136 in two installments).

The overall development will receive a total parkland credit of $19,910,309 (Turnkey Park Credits) for the design, construction, and dedication of the completed park site to the City. The Turnkey Park Credits consist of $8,410,309) for land dedication and $11,500,000 for the design and construction of park improvements. As each phase of the Development requests building permits, the City will review the parkland obligation for that particular phase and deduct the parkland obligation from the Turnkey Park Credits. Once the Turnkey Park Credits are exhausted, parkland fees must be paid to the City before the City will issue building permits. The payment of those fees will not occur until the last phases of construction and is expected to be issued to the City in two separate payments with the last two phases of construction, likely not until the year 2029 (or later).

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Table 2. Total Park Design and Build Costs

Total Construction Hard Costs $9,052,472.00
Project Contingency $905,247.00
Inflation/Escalation $896,195.00
General Contractor Fee $542,696.00
City Park Design and Review Fees $1,598,554.00
Total All Costs $12,995,164.00

The Turnkey Park addresses the need for a park within the Development and nearby neighborhood. It offers active recreational amenities that are not offered in Iris Chang Park or River Oaks Park. The fully improved park site shall be completed and dedicated to the City within five years of the date of issuance of the first residential building permit for the first phase of Development. For example, if the first building permit is issued on January 1, 2026, the park must be fully constructed and dedicated to the City before January 1, 2031. The park is anticipated to be fully open to the public by 2030. The Turnkey Parkland Agreement also includes a provision that allows the Townhome Developer to pay any remaining parkland fees owed by the townhomes to the City to cure any default. Staff agreed to this provision since the Apartment Developer (Hanover Company) is responsible for the design, construction, and dedication of the completed park site to the City, and there were concerns from the Townhome Developer that it would not be able to move forward with its phase of the development in the event the Apartment Developer (Hanover Company) fails to deliver the park under the five-year deadline in the agreement.

The payment of the remaining park fees (approximately $11,145,136 in two separate installments) is anticipated to be designated to support the design and development of a regional park on the Agnews Developmental Center site, which is approximately 1.7 miles northwest from the project site. On June 30, 2014, the Santa Clara Unified School District and the City closed escrow on the former Agnews Developmental Center site, of which the City acquired approximately 21.6 acres of the 81-acre site. 5 Existing buildings
on the site need to be demolished and soil remediation needs to occur to clear the site for the future development of a park. Until funding is available, the site will remain secured and be managed as a land banked property.

5 California Department of General Services 2014 Surplus Real Property Annual Report to the State Legislature, Asset Management Branch Real Estate Services Division, December 2016: https://www.dgs.ca.gov/-/medi a/Divisions/DGS/LegReports/Accessible- Reports/2014/2014-Surplus-Property-Report-Issued-121814.pdf

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Park Master Plan

City staff worked with the developer to determine if the historic Sakauye House could be preserved within the park. It was determined that History Park in San José is the preferred location to safeguard the structure and to avoid potential neglect due to the costs associated with maintaining a historic building in a public park. History Park 6 is
operated by History San José7. This nonprofit organization is dedicated to preserving, interpreting, and sharing the history of San José and the Santa Clara Valley. History Park is one of the key properties managed by History San José. History Park is an outdoor museum featuring a collection of historic buildings, artifacts, and exhibits that tell the story of the City's past, particularly the late 19th and early 20th centuries. The City Manager’s Office of Economic Development and Cultural Affairs oversees the contracts with History San José to help manage some of the City’s Cultural Facilities8.

This approach balances the desire to preserve the historic structure with practical considerations for its ongoing care. History Park houses several Migrant Worker Houses from the Sakauye Farm that Mr. Sakauye supported9. Relocating the Sakauye House to History Park provides a more controlled setting where conservation efforts can be applied consistently, and the public can engage with its history in context with the worker houses in a more accessible, integrated and educational setting.

After it was determined that the Sakauye House could not be accepted into the new park, the Hanover Company committed to temporarily relocating the Sakauye House out of the path of development to facilitate future relocation of the Sakauye House to History Park. History San José pledged a $200,000 contribution and is working with the developer, the Preservation Action Council of San José, and the community to raise additional funds to support the relocation and rehabilitation of the Sakauye House to History Park. Outside efforts are being made to privately raise additional funds to support this effort independently of this agreement. Moving and paying for the Sakauye House to be relocated to History Park requires a separate agreement between the City and History Park. The City Manager’s Office of Economic Development and Cultural Affairs is working with other City departments on seeking City Council approval for the move of the Sakauye House. Future City Council action items, including any budget- related action items, will be determined once the funds needed are raised and the appropriate mechanism to move the house is determined.

The conceptual Master Plan (Attachment B – Conceptual Park Master Plan) was developed with community input and coordination efforts between the developer, the Parks, Recreation and Neighborhood Services Department, and the City Facilities Architectural Service Division in the Public Works Department. The standalone park will

6 History Park Visitor Information: https://historysanjose.org/plan-your-visit/history-park/ 7 History San José webpage: https://historysanjose.org/ 8 City of San José Cultural Facilities: https://www.sanjoseca.gov/your-governm ent/departments-offices/cultural-affairs/cultural- facilities
9 History San José , History Park – Migrant Worker Houses: https://historysanjose.org/plan-your-vis it/history-park/migrant-worker- cabins/

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not be next to any residential uses and is surrounded by neighborhood streets and vehicular parking spaces.

At a minimum, the fully improved park will include: 1) a large turf lawn area; 2) children play areas, including elements appropriate for 2-5 years of age and 5-12 years of age; 3) a dog park with separate areas for large dogs and small dogs; 4) a public plaza; 5) pollinator gardens; 6) sports courts; 7) pedestrian and bike paths; 8) outdoor fitness area; 9) a historic interpretative plaza; and 10) thematic design and interpretive elements that reflect the history of the site and that highlight Eiichi Edward Sakauye and the Japanese farming history of the property.

The developer submitted 35% construction drawings to the City which show the location of park design elements that will reflect the history of the site and honor Mr. Sakauye.

Staff will coordinate with the Japanese American Museum, the Sakauye and Seely families, and History San José to develop the content for the design elements and to properly tell the story of the site and highlight Mr. Sakauye.

Park Naming

City Council Policy 7-5 (Policy 7-5), Naming of City-Owned Land and Facilities, establishes guidelines and procedures regarding naming City-owned land and facilities that are not public streets. Per the policy, the official names must be reflective of one of the following criteria:

• Geographic location;
• Prominent geographic feature or local reference point; • Adjoining subdivision/community;
• Historical event;
• An individual who has made significant contributions to San José, the State, the Nation, or the World and who has been deceased for at least five years; • An individual via a donation or sponsorship agreement; and/or • A group via a donation or sponsorship agreement.

Policy 7-5 encourages names that reflect the City’s ethnic and cultural diversity. Staff recommends names that speak to the cultural significance of the historic farm, as well as names that align with the City’s Racial Equity commitment to recognize and highlight residents from all backgrounds and identities to create connection, understanding, and belonging across communities. Attachment C – Online Survey Results, documents the outcome of all public outreach efforts to name the park and also includes other potentially qualifying park names that can be considered.

The proposed park name, “Eiichi Edward Sakauye Park” meets the Policy 7-5 in that it reflects the name of a historically and culturally significant individual who made substantial contributions to San José. In addition to his advocacy for awareness about

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the Word War II internment, and progressive farming techniques, Mr. Sakauye was actively involved in various local organizations, including the Japanese American Citizen League, the California Pioneers, the Milpitas Historical Museum, and the Santa Clara County Pear Association.

Policy Alternatives

Alternative #1: City Council could reject the Parkland Agreement and/or any of its current terms.

Pros: Redrafting the Agreement and Master Plans could result in an alternative design or other method to comply with the Parkland Dedication and Park Impact ordinances.

Cons: The Agreement is the result of a three-year negotiation between the developer and the City. If not approved, this could negatively impact financing to construct the overall development. Additionally, the planned park reflects input from the community and a collaborative design process between the developer Photograph: Eiichi Sakauye, prominent San José pear grower back on his San José ranch from Heart Mountain Date: 1945-07-09 Contributing Institution: UC Berkeley, Bancroft Library http://www.oac.cdlib.org/ark:/13030/ft9d5nb5vx/?order=2

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and City staff. The dedication of land, the construction of a new park, and the entire development project would be delayed or jeopardized.

Reason for not recommending: The proposed turnkey improvements are consistent with the Planned Development Re-zoning and approved Planned Development permit the City Council adopted, the Master Plan and Park Name the Parks and Recreation Commission and the community support. The improvements create a quality park with public amenities designed to support the development and the greater community.

Alternative #2: City Council could select an alternative park name from the list of eligible names generated through the public outreach process.

Pros: The City Council could adopt a different name from the list of qualifying names received through a public survey process and from the community.

Cons: The City Council would be selecting a name other than the one recommended by the Parks and Recreation Commission.

Reason for not recommending: Members of the Sakauye family support the name “Eiichi Edward Sakauye Park.” It is consistent with public input and the Parks and Recreation Commission’s recommendation.

Racial Equity Impact Analysis

The nam
e, “Eiichi Edward Sakauye Park,” would be the first park site in San José to be named after an individual Japanese American. There are two existing City facilities named in recognition of the City’s Japanese American heritage: the Japanese Friendship Garden in Kelley Park and the Shirakawa Community Center, named for former Councilmember George Shirakawa Senior. Naming this park site “Eiichi Edward Sakauye Park” would mark the first time an entire park site is named for a Japanese American.

EVALUATION AND FOLLOW-UP

Approval of the Turnkey Parkland Agreement by the City Council will authorize City staff to continue to work with the developer to the oversee the design, development, and construction of the turnkey park improvements and accept all improvements after final inspections have been completed. Public Works Department staff, in coordination with Parks, Recreation and Neighborhood Services Department staff, will review and approve the project construction documents and will work with the developer to refine the design to meet all City construction standards and to be in conformance with the 35% construction drawings currently on file with the City.

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COORDINATION

This item has been coordinated with the City Attorney, City Manager’s Office of Economic Development and Cultural Affairs, Planning, Building and Code Enforcement Department (Planning Division), and Public Works Department.

PUBLIC OUTREACH

An online community meeting and two online public surveys were conducted to engage the community in the master planning and park naming.

The community was notified of the community meeting via:

• Mailed post cards to residents and property owners within 1,000 feet of the site; and

• Electronic notices provided via Council District 4 Office, surrounding neighborhood associations, social media, including Facebook and Nextdoor.com, Parks, Recreation, and Neighborhood Services webpages, and the Park Advocates and the Parks Foundation social media platforms.

The first online public survey (January 19, 2023 to February 5, 2023) consisted of a master plan component and a park name suggestion component. For the master plan, participants were offered the opportunity to provide input on the conceptual design options and to provide name suggestions through ranked choice voting.

The community voiced interest in active and passive recreational amenities. The Master Plan is consistent with community input in that the park will include a large open lawn area, a walking loop, sports courts, fitness equipment, playgrounds, garden areas, seating elements, and plaza spaces that can be activated with events.

A majority (68.6%) of community members who participated in online public surveys expressed a preference to name this park “Sakauye Family Park” in reference to the Sakauye family and historic farm.

This memorandum will be posted on the City’s website for the April 15, 2025 City Council meeting.

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COMMISSION RECOMMENDATION AND INPUT

The Parks and Recreation Commission considered the Park Master Plan and staff recommended name, “Sakauye Family Park” during the June 5, 2024, meeting10.

Members of the Sakauye family, the Preservation Action Council of San José, and other community members submitted public comment letters and spoke during the meeting.

The commenters asked to have the Sakauye House preserved on site and to specifically name the park “Eiichi Edward Sakauye Park” (instead of “Sakauye Family Park”).

Staff explained that the request to retain the Sakauye House in the park was not supported due to the cost and complications associated with owning and maintaining a historic building in a public park. Staff did not have any concerns with naming the park after Mr. Sakauye. After much discussion, the Parks and Recreation Commission recommended the City Council adopt the Park Master Plan with the understanding that design elements highlighting Mr. Sakauye, and the history of the farming site, will be included in the park and to not retain the historic house as part of the park design.

Commissioner Woolfe motioned to recommend the official park name to be the full name the “Eiichi Edward Sakauye Park”, which was seconded by Commissioner Brennan. The motion carried (9-0-2, Campbell and Morrow absent).

Commissioner Woolfe then motioned to accept the Montague and Seely Park Master Plan with the recommendation that the plan be revised to include meaningful historical elements and references throughout the site, which was seconded by Commissioner Villarreal. The motion carried

11. The motion carried (8-0-2-1; Campbell and Morrow
absent; and Nguyen abstain)

CEQA

Environmental Impact Report for the 0 Seely Avenue Mixed Use Project File No. ER21- 284 (Resolution No. RES2024-297), and File Nos. PDC21-035 (Ordinance No. 31115); PD22-002 (Resolution No. RES2024-299) and PT22-003 (Resolution No. RES2024- 298).

10 Parks and Recreation Commission Agendas and Minutes: https://www.sanjoseca.gov/your-governm ent/departments- offices/parks-recreation-neighborhood-services/get-involved/boards-commissions/parks-recreation-commission 11 June 5, 2024 Parks and Recreation Commission Minutes:
https://www.sanjoseca.gov/home/showpublisheddocument/115714/638658002780400000

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PUBLIC SUBSIDY REPORTING

This item does not include a public subsidy as defined in section 53083 or 53083.1 of the California Government Code or the City’s Open Government Resolution.

/s/
Jon Cicirelli
Director, Department of Parks,
Recreation, and Neighborhood Services

The principal author of this memorandum is Rebekah Ross, Supervising Planner IV, Parks, Recreation and Neighborhood Services. For questions, please contact by email [email protected] or by phone (40
8) 535-3828.

ATTACHMENT

A. Location Map
B. Conceptual Park Master Plan
C. Online Survey Results

1. Staff Analysis of Name Suggestions

2. Name Nomination Forms Received

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Attachment A: Location Map

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Attachment B – Conceptual Park Master Plan

San Jose City CouncilApril 29, 2025

San Jose City Council
April 29, 2025