San Jose approves agreement for sale of Airport West property

In a unanimous vote, the San Jose City Council approved a memorandum of understanding which will pave the way for the sale of the Airport West property to a group of investors led by Lew Wolff and John Fisher, owners of the San Jose Earthquakes. A portion of the property is slated for a new stadium for the team.

The site, located at 1125 Coleman Avenue in San Jose, totals 74.8 acres. In addition to the 13.5 acre portion which will be designated for the stadium and its associated parking, the proposed development of the property includes 1.514 million square feet of office and research and development space, 300 hotel rooms, and up to 75,000 square feet of retail.

The city council’s action allows the city to negotiate and execute an option agreement and a sale agreement for the property. Negotiations that have taken place over recent months have already formed a broad outline of both the option and sale agreements. Under the terms which were approved today, the parties have until June 30 to finalize the option and purchase agreements on the property.

Under the terms of the proposed option agreement, the developers will make a $3 million option payment to the city in June, with a total of three additional payments to follow every six months afterwards or until the purchase closes escrow. These payments will be applied to the property’s purchase price unless the deal fails, in which case these fees remain with the city. The proposed purchase agreement calls for the potential purchase of the entire Airport West property for a total of $150.8 million.