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1 An Alignmentof theStars
forDowntown SantaClara``~ -~
~ ~ We have a 60 year-old City Hall that will need to be rebuilt in the next decade
~ It's not a matter if "IF" City Hall will be rebuilts but "When" ~-~ "When" City Hall is Rebuilt -How and where could
it be built to bring the most valve to Santa Clara
and its citizens?
Would the Return of City Hall Downtown Benefit
Santa Clara? -ASK Other U.S. Cities... ,
'= R.O.D. Research revealed multiple American Cities had Returned their City Halls back to their Downtowns
Like Santa Clara, many of these cities had altered or moved their City Hall OUT of Downtown in the 1960s and 1970s
They Then Moved them Back Into Downtown
Since June 2021, We our team has been interviewing leaders from seven cities to understand the "results" after City Hall returned The following are our Findings...
Interviews With Multiple American Cities Who
Moved Their City Halls Back to Downtown
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Finding One:
"Private Investment Always Follows Public Investment"
"Immediately affer Cify Hall moved in, $190 Million in renovation and development went into the downtown during the pandemic" -Mauldin, Massachusetts Private Investment ALWAYS Follows Public Investment -After City Hall was Rebuilt eight major projects were built Downtown -Winter Garden, Florida "All fold, fhe Downtown has drawn in $100 million in investment in the last five years - 30 new businesses open in the Downtown, and17 buildings that have been rehabbed or are about fo begin the process of consfrucf►on" -Sandusky, Ohio Over the last two years, "there has been a Renaissance in Downtown" -Millions of dollars are being invested in Eau Claire's central neighborhood -Eau Claire, Wisconsin
" Construction on the Agora Tower property, a $13.8 million project, began immediately after the City Hall Move - I~eKalb, Illinois
Finding Two:
Building Downtown Reduces the Cost of Construction
All Cify Halls Utilize Downtown Parking Garage During OFF PEAK Hours -Eliminating Future Garage Costs for City Hall
- Both Sandusky and Mauldin (and the Future New Rochelle) City Halls are Mixed Use (Retail on Bottom and Offices above -Greatly Offseffing Construction Costs Example: Mauldin -"The new City Hall project: 320 residential units in two buildings, a 45,000 square foot office space (included within: the New City Hall), more than 22,500 square feet of ground floor retail." Multiple Cities Benefifted from Land Sales of 1950s/ 1960s City Hall properties that were located in RESIDENTIAL areas
~;~~ ~ rrfr~'f~~h -the 1975 Cify Hall blocked citizens from using Main Street; choked off the Train Station and Killed the Town Square. The New City Hall was divided into two buildings connected by a sky bridge which has reconnected the Downtown to the City" Finding Three: Downtown Winter Garden
Turning a City Hall into a Synergistic Center
"The City Hall was not Designed for City Government but to Create Downtown Activity"
"The Lobby is an Art Gallery"
"We structured the Front of City Hall to be an Amphitheatre" "We Designed the Chambers so it could be used for
Community Events"
"We even Painted it White - so we could project light shows for Halloween and Christmas"
-R.O.D. Interview with Tanja Gerhartz (Economic Development Director)
Santa Clara has outgrown its City Hall -
It's Not a Matter of "If," But "When"
City Hall Build in 1963 when
population was 33,000
-~ Population was 130365 in 2019
-~ There are 500+ (non-
Fire/Police) employees
Only - 250 can fit in current
buildings
'~ Council Offices cannot fit
Councilmembers
r~ There are five conference
rooms
Employees are now working in
closets
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The Consultant Answered the Question
But It Wasn't the Right Question
Reasons to "Re-Ask" The Question:
i . A Mixed-Use City Hall located Downtown would defer $Millions though the Added Value of Office or Housing Above
'~. Multiple Sites Exist Downtown for an Eight to Ten Story Structure '.. A Taller Structure Could Produce up to b Stories of Income for City Hall ~~j City Hall's Need: 162K square ft. = 4 stories
i.. Affordable Housing Would Create Government Advocacy for Moving Courthouse ~. A Downtown City Hall Would Eliminate the Need for Another Parking Garage (City Employees would utilize Downtown garage mainly in Off-Hours for the Downtown) Reasons to "Re-Ask" The Question:
A City-Owned Temporary Location for City Hall Exists Today (Commerce Plaza/950 Lafayette)
There are T.O.D. Benefits in Placing City Hall 'h Mile From BART and the SC Station Hub
City Hall employees would guarantee office space usage during these times of leasing uncertainty
Would Any Other Location Stimulate the Development that we have seen in these other American Cities?
Revenues/Benefits IF Built Downtown
The QUESTION: Where in Santa Clara Could (a Needed) City Hall be Built that would create the Greatest Value for Santa Clara and its Citizens?
A City Hall Built Downtown Creates Positive Impacts: Social, Civic, Financial and Environmental (Reduced Car Trips) Benefits ~ ~ Having a City Hall in a Residential Area Creates Negative Impacts that Needs to be Mitigated
The MATH:
Why Building Downtown Makes Sense
G Parking Garage Savings = $25,000,000 -$35,000,000
C Revenues from Selling/99 year lease of Warburton Lands - $8-10,000,000/acre G Revenues generated from Office Space Above City Hall ($35/45 per sq/ft. annually) If Four Floors/ equated to Commerce Building (12,850 sq/ff per floor) _ $2,056,000 annually
- SKIP: Need your help here
~~ Retail Rental - TBD
O As Seen in Multiple other Cities, $100,000,000s of investment following City Hall investment o The forgotten Math: The $180,000,000 -$300,000,000 in taxable revenue that will be now brought back into Santa Clara
There Will Be a Request to Study _Moving t
a Location Other Than City Hall:...
There are Other Locations that can ALSO offer the Construction Economies ~~ Shared Parking
~~ Mixed Use: Office on Top and Retail on Bottom
C~ Locations Such As City Place and 02/Mission College
However, this would Negate the Following Huge Benefit to the City of Santa Clara and its Citizens...
The MATH: -_
Why Building Downtown Makes Sense
Mt View (2015) Taxable
Revenues (No Hotel Taxes)
_ $152.34M/an
- Palo Alto's equates to
$300M+
Assume Downtown Santa
Clara were to bring in
$180M/annually (Not
counting TOT revenues)
IF don't COMPLETE
Downtown for 40 years,
Santa Clara will lose $7.2
BILLION in taxable income
for the city
- - Do~ta~_Taxable Sales ~r►d Comrncrcial
Establishment Breakdown,~,
---
Our Next Stepsk
DCTF and ROD make a motion to officially ask Council:
To Study and Understand How a Downtown City Hall Would Benefit Santa Clara Citizens by stimulating the Downtown economy and development and, due to its location, save taxpayer money Have the questions answered by the group that has been studying this Downtown for three years: W.R.T.
Karen Foils (Put at End
50 Years Earlier: How the Removal of City Helped_
lead to the Death of a Downtown ~~ -=1-~-~-~
~J "If you Remove City Hall From Downtown, it
will Spell the Death of all of the Retailers and
Downtown Santa Clara Itself"
Ex-Mayor Anthony R. Toledo, August 1962
San Jose Mercury News
Sandusky, Ohio Interview: Eric Wobser (City Manager)
Interview 6/19/21
The return of City Hall will act as a catalyst to
further encourage commercial development
across downtown"
"In the last five years (since the City Hall
announcement), we've had over 30 new
businesses open in fhe downtown
We've had 17 buildings that have been
rehabbed or are about fo begin the process
of construction"
"All told, the Downtown has drawn in $100
million in investment in the last five years"
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Downtown Sandusky, Ohio -Background
~~ Original Downtown City Hall Built in 1886
~-Moved City Hall Out of Downtown - May,1958
~~ City Hall to Move Back Downtown June, 2017
Interviewed: City Manager Eric Wobser
Source : I ~islc •~ G ~ hcnmar~ ~_i*~- Hall I Sand~ckv Reai;ler The location of Sa^duskv's City Hall I gas i ~ ion; cd oro~md aulte a bit Ihrouahout .fs '~~i;tcr~
-_ - -- - -- -- - -
~ ~
Sandusky Interview:, Eric_ WobSandusky Cify Manager
Interview 6/19 .. _ .. _ ---. _ .- ,.
"In the last five years (since the City Hall announcement), we've had over 30 new businesses open in the downtown
We've had 17 buildings that have been rehabbed or are about to begin the process of construction, which for a city our size is an incredible amount of investment."
"All told, the Downtown has drawn in $100 million in investment in the last five years,•
"You need a City Champion to create an Amazing Downtown."
Downtown Malden, Massachusetts
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Downtown Malden Massachusetts -Background
Original Downtown City Hall (1857-1975)
City Hall Moved and Building Blocked Pleasant
(Main) Street - 1975
1970s City Hall Torn Down/ Pleasant Street Restored
and New City Hall/Mixed Use Building Completed-
2014
Interviewed: City Controller Ron Hogan
Malden Massachusetts: A 1970s City Hall
Physically Blocks Downtown's Main Street
"For more than four
decades, Maiden's
cavernous
Government
Center literally
divided the
Downtown in half.
Now it is being
knitted back
together"
-The Boston Globe
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Malden Interview: Ron HogaMauldin Acting Controller ,~
Interview 6/24/21 ,
"The City Instantly Knew it made a mistake: The building blocked citizens from using Main Street; choked off the Train Station and Killed the Town Square -Every Mayor tried and failed to tear it down"
"The Citizens hated it and we finally put an RFP out to the development community" "The new City Hall project was aground-up development for 320 residential units in two buildings, a 45,000 square foot office space (included within: the new City Hall), more than 22,500 square feet of ground floor retail."
"Pleasant Street (Mauldin's Main Street) was Returned and divided into two buildings connected by a sky bridge which has reconnected the Downtown to the City" "Immediately affer City Hall moved in, $190M in renovation and development went into the downtown during fhe pandemic"'
"Multiple business immediately open their doors and this would not have happened without this change"
-AdJili~.~r of Source: ir~nstormation ~rderv:av ~n Guv: nfe•:m idialoen ' 7J~alden Redevelenrnent Avfncrity
Malden: A 2019 City Hall Reopens
Downtown's Main Street
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Case Study: ~- -~ ~j° , ~ ~, T~ ~,-_ r-
"The City Hall is fantastic for our business. The new design is bright and beautiful and those who work and do business in City Hall are 30% of our entire business"
Manager, Tour Les Jours
"City Hall has had a big impact on us. Most of our lunch crowd is from City Hall"
" -Manager, 1 10 Grill
We have a huge amount of traffic after hours from City Hall" Manager Faces Brewery
DeKalb, Illinois; Eau Claire, Wisconsin (and several more):
Private Investment follows Public Investment
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O Dekalb, Illinois City Hall Moved out of Downtown - 1967 -Moved .~_ ~ I I~ .~ Back to Center of Downtown in 2020. DeKalb City Manager Bill ~, ,;' Nickias: "It's a commitment to our Downtown...it is so important to ~ ~'I - ~3- a move the city's government closer to Downtown and the heart of the - - j'; ~'~ ~ ~_ ~-I ~ -+ city. .' •a ~ `It~~ ~,~tr 1 4
~=~ Construction on the Agora Tower property, a $13.8 million project in ,;,~ ~ ; ~'_ t.~- ~+t ~ r . ' l,11 - ,~~~, ~. downtown DeKalb, began immediately after the City Hall Move ~- ~~r ",, ' ~. Y ~ ~ ~~ Eau Claire, YVisconsii~ -Restored its City Hall over the last two years ~ '`~` ~~~i ~'"~~~~~~ as (again) a message that they believed in the Downtown" -Aaron y~~i~ Q ~ White- Dir. Economic Dev.
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~ S ~ ~ Since, "there has been a Renaissance in Downtown" -Millions (of) i~ ''~ s~. ~ = ~ dollars are being invested in Eau Claire's central neighborhood i , ~ ~ ' ;, ~ ;- G Multi-story apartment buildings, new commerciali - ~ ~ s~~ I~~ -~~~~~ ~_ ~`~~.k~"-'-"_'' ~ _ ~~ ^ ` - structures(Lismore Hotel, Confluence Project. ~ ~ - _ ~_ - O • Risina A6ovE Auide to ~0?I Conairu~i _~n F i ~.f= i-~ Govm~own..fvolume~re.or~~ Winter Garden, Florida
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Downtown Winter Garden Florida, Background
~~ Original City Hall Built 1937 in Downtown
~~ Moved City Hall- 1979
-Announced Plan to Move City Hall to Downtown
Center-2008
~ ~ Interviewed: Tanja Gerhartz - Dir. Economic
Development
Winter Garden's "New" Downtown City Hal
From the 1950s-1990s, the Downtown
had fallen into disrepair
City Leaders knew that "PUBLIC
investment" would produce "Private
Investment"
The city restored a 1920s Hotel and
Downtown Theatre
The City implemented the "Plant Street
Transformation Project
Construction of a Clock Tower, Garages,
Parks and Fountains
...qnd In 2008, a New City Hall was Built
in the Center of Downtown
Winter Garden -Interview with ~,
Tanja Gerhartz (Economic Development Director) ~ .
"Private Investment ALWAYS Follows Public Investment"
After City Hall was Rebuilt in 2008, Things Took Off" -the following was Built Downtown:
~~ Blpck and Garden Buildings Erected (Private)
~~ Crooked Can Brewery and Plant Street Market (Private) ~~ Boyd Street Parking Garage (Public)
O Infill Housing/East Winter Garden (Private/Public)
~~ Multiple Downtown Housing Projects Approved (Private/Public) ~~Tremaine Boyd Mixed-Use Project(Private)
~~ Park Place Townhouse (Private)
Exchange Building on Plant (Private)
Turning a City Hall into a Synergistic of
Downtown Winter Garden
"The City Hall was not Designed for City Government but to Create Downtown Activity"
_ "The Lobby is an Art Gallery"
~~_ "We structured the Front of City Hall to be an Amphitheatre" " "We Designed the Chambers so it could be used for
Community Events"
~_ "We even Painted it White - so we could project light shows for Halloween and Christmas"
-R.O.D. Interview with Tanja Gerhartz (Economic Development Director)
"City Hall moving back Downtown...will put the
people's house back in the heart of our city,
making a bold statement of confidence in our
Downtown's future."
-Mayor Norm Branson (New Rochelle, New York) -2017
City Hall - a _Sy„mbolic,Centerp_iec_e__of
Downtown
"What type of message do you think it sends when
the City's government is located in the suburbs or
the Chamber of Commerce in a big -box center"
-John Karros - Urbansence