UPDATE: The Samsung item on this week’s agenda has been deferred to March 26.
The city is offering the global semiconductor corporation $500,000 for new equipment, another $500,000 in utility tax rebates, a $3.9 million discount on traffic impact fees, sped-up permitting and a reduced-rate construction tax.
Samsung plans to expand its 300,000-square-foot headquarters, located at 3655 N. First St. in San Jose, to a 680,000-square-foot campus with two 10-story towers. Instead of employing 370 people, the new facility would be large enough for at least 2,000 employees.
Other items of note from the San Jose City Council agenda for March 19, 2013:
• The state-shuttered Successor Agency to the Redevelopment Agency has $90.35 million of variable-rate debt to deal with. The city’s asking JP Morgan to extend its letters of credit for the combined 1996 and 2003 bond debt, which has steadily jumped in interest and is prone to increased rates any time the city’s credit rating gets knocked down.
A memo from the city’s Director of Finance, Julia Cooper, says the situation “demonstrates a long-term relationship with JPMorgan extending for nearly 20 years, but also highlights the increasing market complexity of managing variable rate debt coupled with increasing credit concerns of JPMorgan on the [redevelopment] agency’s financial position.”
To address those concerns, the city in 2011 offered up 18 properties as collateral for the money owed, including the California Theatre, the Billy DeFrank Center and the Marriott and Plaza hotels.
• After months of discussion, the city will consider adopting a final ordinance to extend a business tax amnesty to past-due debtors. The council will also consider granting retroactive amnesty to police officers who would otherwise have owed for working side jobs in traffic patrol, security or other gigs that require them to don city-issued uniforms.
• A property at the corner of Sunny Oaks Drive and Blossom Hill Road deemed surplus by the city is about to get sold for $135,000 to a Mr. J Jesus Magana. Money from the sale of the 0.14-acre property goes straight to the city’s general fund. The city wrote it off as surplus after no developers expressed an interest in building low-income housing there.
• Another tiny parcel—this one only .112 acres off of South King Road—will go for $50,000 to Kevin Vu. The city got this little slice of land in the 1970s, leftover from a road-widening project. Vu plans to build a parking lot on it.
• PG&E gave the city $1.12 million to fund the city’s Silicon Valley Energy Watch, an effort to educate the public about how to save energy. The city program targets hard-to-reach commercial and residential buildings in need of energy upgrades. Between 2010 and 2012, the city helped reduce enough energy to power 4,000 homes for a whole year, saving Santa Clara County customers $5.3 million on their annual energy utility bills.
• The City Manager’s Office will provide a labor negotiations update.
WHAT: San Jose City Council meeting
WHEN: 1:30pm Tuesday
WHERE: City Hall, 200 E. Santa Clara St., San Jose
INFO: Office of the City Clerk, 408.535-1260