On June 26th, 2018 the City of Santa Clara entered into an agreement giving it the option to purchase a right-of-way easement to park of Franklin and Washington Streets. The easement gives the City right of way for the streets in perpetuity.
Details of the Agreement
Is the configuration of the street set in stone?
No. This is just an option to purchase an easement where Franklin and Washington Streets once ran. We would like to complete the “Downtown Specific Plan” to determine if executing this option is right for the overall plan.
When will the agreement become effective?
This agreement basic agreement is effective today, and the City has 10 years to enter into the easement.
To finalize the agreement and lock in the negotiated price the City must put a down payment into an escrow account.
The City does not take possession of the property until the full amount has been paid, and there is no deadline for the final payment.
What are the costs now and in the future?
The costs to execute the option now would be $2,287,831 million, $700,000 of which is required for a downpayment.
There would be future costs (TBD) to relocate utilities and for improvements to the area within the easement once the City takes possession and rebuilds the street.
The cost increases after July, 2022.
Does the City owe anything if we don’t make use of the option?
No. The City will only be on the hook when the it executes this option within 10 years.
Does this prevent us from creating a downtown specific plan?
No, this has been a catalyst for the city to allocate funding and resources to developing a “Downtown Specific Plan”.
What happens when developers want to work on the properties adjacent to the street?
A developer and/or land owner will have a “Downtown Specific Plan” to follow. This plan lays out community/city expectations for this area. Anything proposed will still be required to be reviewed and approved prior to proceeding with developing.