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News Release: Santa Clara Receives $5 Million from Settlement Agreement over San Jose’s Santana West Development Project & $1.2 Million More to be Paid

Funds to go towards affordable housing and transportation improvements

Post Date:08/05/2019 3:30 PM

FOR IMMEDIATE RELEASE: Monday, August 5, 2019

CONTACT: Maria Le, Communications Coordinator, 408-615-5517 or


SANTA CLARA, Calif. – The City of San Jose made a $5 million payment to the City of Santa Clara last week as a result of a January 2018 settlement agreement over the Santana West Development Project. Santa Clara will use the $5 million to support affordable housing efforts and transportation improvements in Santa Clara. City staff will make recommendations to the City Council on potential projects in the coming month, with an additional $1.2 million payment expected by the end of the week from San Jose for specific traffic and transportation improvements.

In January 2018, the City of Santa Clara and the City of San Jose reached settlement over their disputes related to the Santana West Development Project, located in San Jose and near Santa Clara city limits.

“We are pleased to receive this $6.2 million to invest in the Santa Clara community on affordable housing and transportation improvements.  We are looking forward to implementing the specific traffic and transportation improvements and proposing a recommendation for the $5 million to the City Council that invests in our community.”  City Manager Deanna J. Santana stated. Highlights of the Santana West settlement agreement include:

  • Santa Clara agreed to dismiss its challenge of the environmental impact report for San Jose’s Santana West project. The settlement requires investment of traffic improvements in San Jose totaling approximately $2.5 million before the issuance of occupancy for the first 300,000 square feet of rentable space;
  • $1.2 million for Santa Clara traffic improvements at the time of a grading permit for the first 300,000 square feet of rentable space;
  • $5 million payment to Santa Clara upon issuance of a grading or building permit for the site, or by July 1, 2022, that will be used for transportation and affordable housing in Santa Clara;
  • Payment of a portion of Santa Clara’s attorney’s fees estimated at $145,000; and,
  • Guarantee that any traffic impact funds that San Jose would waive for this, or other developments, that affect traffic in Santa Clara will be replaced with alternative funding by San Jose.
  • The two cities agree to work together to address other issues such as traffic in Stevens Creek corridor.

About the City of Santa Clara

Located at the heart of Silicon Valley about 45 miles south of San Francisco, the City of Santa Clara truly is “The Center of What’s Possible.” Incorporated in 1852, Santa Clara covers an area of 19.3 square miles with a population of 120,000. Santa Clara is home to an extraordinary array of high-tech companies, including Applied Materials, Hewlett-Packard, Intel, Nvidia, Oracle, and Ericsson. The City of Santa Clara is also home to Santa Clara University, California’s Great America Theme Park, and Levi’s® Stadium, home of the San Francisco 49ers and Super Bowl 50. For more information, go to



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