Milestones
By Miles H. Barber

Santa Clara has historically been a City of avant-garde thinking and many times action.

When our City bought Great America the critics were almost as vocal as the supporters. Clearly this was a controversial consideration.

There were also critics who voiced opposition to the lease agreement provided to the 49ers on City land which adjoined the Great America Park.

Twenty years ago this parcel was vacant ground which the City had purchased some years earlier for the purpose of building a nuclear power plant.

The power plant was put on hold and was later replaced by a more conventional one now known as the Don Von Raesfeld Power Plant also located on city property.

The early years of the 49ers occupancy seemed like a boon to some and a bogus deal to others. However, in retrospect, the payroll of the team, employees and related commercial services did prove to be a bonus for our City.

Many homes, cars and properties were acquired by these new community members and many still live in the area even though retired.

Joe Montana and Eddie DeBartolo have now approached the City with an offer to negotiate for two parcels of vacant ground between Tasman Avenue and the SC Golf Course. These parcels have been on the market for about 13 years and not one developer thought it worth their time or money.

Again we have critics who consider that offering exclusive negotiation rights to Montana and partners would not be in the best interest of our City.

Our City Manager and Staff also recommended going out for bid to get the best deal.

However, in the very staff report submitted to the City Council, it appears that two different proposals were made to our City on these same parcels over 10 years ago.

At that time exclusive negotiation rights were granted to a hotel chain without an RFP. For a variety of reasons neither parcel deal was concluded and they went back on the market to sit idle for another decade.

With Montana as the spokesman and DeBartolo as the banker, the idea of granting exclusive negotiating rights to them may be a good thing for Santa Clara.

Credit it an issue for even the most worthy borrower in today's market place. Having a bird in hand with their own financing may be better than a pipe dream of a Wanna B. Bigg, who may or may not materialize.

While the possibility may exist, that someone, somewhere out there may want to pay a kings ransom to acquire leasing rights to these parcels, the likelihood is pretty slim.

For example, John Sobrato, one of Santa Clara's major developers couldn't make these two parcels pencil for his development needs.

These two properties had a "For Lease" sign on them since 2000, until the wooden supports rotted and it fell down. And note, this was through a major period of growth and expansion. They have not been exactly the most sought after sites in our City.

If Montana and Associates conclude this deal with a hotel, restaurant and sports lounge, the revenue generated for Santa Clara through sales tax and new jobs would be a terrific asset to have in our income producing portfolio.

Miles H. Barber can be reached at Scweekly2011@yahoo.com