Berryessa Flea Market Status Report
City Council
May 13, 2025
Item 8.1
Presenter:
Blage Zelalich, Deputy Director
City Manager’s Office of Economic Development and Cultural Affairs
Background: City Council Direction - June 2021
Vendor Transition Fund
Flea Market Advisory Group
Five-Acre, On-site Urban Market
Economic/Feasibility Studies
Support Berryessa
Flea Market vendors
through the
redevelopment of
the site
Vendor Outreach and Resources
2 Vendor Outreach, Engagement, and Support
• Direct stall-to-stall outreach
• Text messaging
• E-mail communication
• Advisory Group check-ins
• Online resource hub at
sjeconomy.com/FleaMarketVendors
3 Milestone Thru February 2025
Outreach Events 65
Outreach Attendees 267
1:1 Technical Assistance 104
Group Technical
Assistance
165
Loan Applications
Approved
53 Total Loans Disbursed $131,500
Mission Asset Fund engaged to
provide services along with direct
outreach to the vendor community
.
Market Studies
Economic and Cultural Impact
• Major economic hub: attracts 836K-
1.7M visitors annually and generates
$20M-$40M in sales
• Supports 1,000+ jobs
• Low stall rents facilitate incubation of
several successful businesses
• Family-friendly attraction in San Jose
with diverse offerings and cultural
significance
4 Operational Models Report
• Generates $5.7M annually - low overhead,
prime location, diverse revenue streams
• Relocation challenges include high land
costs, vendor loss, and replicating success
• Markets without long-term leases or
property ownership have struggled
• Future models could include a smaller
market at the current site, a downsized
location, or a multi-use space
Market Studies
• Eight locations were analyzed based on trade area, demographics, traffic patterns, facility size, parking, access, and feasibility.
Five-acre market on the current site Evergreen Center
Singleton landfill Former Sears at Eastridge Mall
Remillard landfill Santa Clara County Fairgrounds
Santa Teresa/Great Oaks City-owned land near Morgan Hill • Three most viable options face issues like space limitations, environmental concerns, and ownership restrictions.
5 Alternative Sites Assessment
Market Studies - Alternative Sites Assessment
Former Sears at Eastridge
• Considered for short-term use, but has space
and renovation challenges
• Uncertainty around the current Flea Market's
closure and timing of funding for tenant
improvements
• Owner desires an immediate arrangement
Santa Clara County Fairgrounds
• Transition in Fairgrounds operating personnel
• County's ownership and redevelopment
proposals limit City involvement
6 Market Studies - Alternative Sites Assessment
Singleton Landfill
• City-owned site best long-term option
• Requires 3-5 years of environmental mitigation
at $3-4 million/acre for flea market use
• Additional construction costs significantly higher
on landfill sites
• California Surplus Land Act requires prioritizes
affordable housing development
• City denied an exemption from the Housing and
Community Development Department for
employment and revenue-generating
development
7 Vendor Transition Fund
Transition Fund Contributions $7.5 million
Early Funding – Property Owner
City of San Jose
$500,000
$2.5 million
One-year closure noticed issued –
Property Owner
$2 million
Flea Market ceases operation –
Property Owner
$2.5 million
8 Berryessa Flea Market Status Report
City Council
May 13, 2025
Item 8.1
Presenter:
Blage Zelalich, Deputy Director
City Manager’s Office of Economic Development and Cultural Affairs