447 SOUTH ALMADEN BOULEVARD AND 235 WOZ WAY
PROPERTY ACQUISITION AND FINANCING
Jen Baker, Director, City Manager’s Office of Economic Development and Cultural Affairs Kevin Ice, Assistant to the City Manager, Director of Real Estate, Office of Economic Development and Cultural Affairs
Maria Öberg, Director of Finance
Qianyu Sun, Deputy Director of Finance – Debt and Treasury Management September 30, 2025
City Council/SJFA Agenda Item 1
City Council Agenda Item 8.1
PROPERTY
• 3.56 Acres located at South 447
Almaden Blvd and 235 Woz Way
• Downtown General Plan
• 414 space parking lot
City lease until 2027
• Entitled for 1.4M square feet of office
• Located between Convention Center
and Discovery Meadows/Children’s
Discovery Museum
2 • Purchase Price: $13,500,000
• 20 day closing upon contract execution
• As-Is acquisition:
Title and environmental due diligence are complete
• Closing costs paid according to County custom
• City to assume Disposition and Development Agreement
held by Successor Agency to the Redevelopment Agency
3 KEY TERMS
STRATEGIC
OPPORTUNITY
• Creates 32-acre contiguous City holding
• Bridges Discovery Meadow and
Convention Center
• Can support Convention Center
expansion or other Sports and
Entertainment use
• Provides flexibility in convention
expansion, which may reduce
construction costs
• Advantageous market to act
• Interim use as parking lot
4 COMMERCIAL PAPER PROGRAM
• The City and CSJFA established the program in 2004
• Utilize a lease revenue financing structure, where the City pledges certain assets to CSJFA
• CSJFA can issue up to $175 million of CP Notes (taxable and tax-exempt) up to 270 days
• Maturing notes are either paid in full (principal and interest) or “rolled” to the following maturity date (interest may be capitalized) • Short-term or interim borrowing at variable interest rate • Secured by lease payments, pledged assets and a letter of credit (currently by TD Bank, expires on May 20, 2030)
5 FINANCING OF THE PROPERTY ACQUISITION
• Issuance of taxable CP notes up to for $13.5 million
• The CP notes principal will be amortized over 7 years • Source of repayment – Parking and CCFD Funds
• CP Fees on the Purchase
o Commitment Fee – 0.32%
o Dealer Fee – 0.045%
o Misc. Annual Fees – 0.12%
6 UTILIZATION OF CSJFA CP PROGRAM
7 COUNCIL/SJFA AGENDA ITEM 1 RECOMMENDATIONS
• Conduct a public hearing in accordance with Section 6586.5 of the California Government Code; and
• Adopt a resolution to approve and authorize the issuance of lease revenue commercial paper notes in the amount not to exceed $13,500,000 to finance the purchase of the Property.
UNDER BOTH THE DEBT MANAGEMENT POLICY AND SAN JOSE MUNICIPAL CODE SECTION 4.34.200, APPROVAL OF THE ISSUANCE OF THESE CP NOTES REQUIRES A TWO-THIRDS VOTE BY THE CITY COUNCIL (8 VOTES).
8 COUNCIL AGENDA ITEM 8.1 RECOMMENDATION
• Adopt a resolution authorizing the City Manager, or her designee, to negotiate and execute a purchase and sales agreement for the purchase of the property; and
• Adopt 2025-2026 appropriation ordinance amendments in the Convention Center District Revenue Fund and the General Purpose Parking Fund.
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