Council directs staff to begin Surplus‑Land Act process for Singleton site after Flea Market status report

The San Jose City Council on May 13 received a status report on transition planning for the Berryessa Flea Market and directed staff to advance an RFP process for the city‑owned Singleton landfill site in accordance with the California Surplus Land Act to determine potential uses and feasibility. The vote instructing staff to pursue the Surplus Land Act path passed 9–1 with Councilmember Dwan recorded as the dissenting vote; the mayor was absent.

What staff reported: Office of Economic Development and Cultural Affairs staff and consultants described four years of work to assist vendors with relocation planning, vendor technical assistance and a vendor transition fund. Key points: - Vendor transition fund: The project developer/property owner committed $5,000,000 toward a vendor transition fund; the city allocated an additional $2,500,000. To date staff reported that roughly 15% of the anticipated total vendor transition funds have been spent on studies, technical assistance and grants. - Technical assistance and loans: Mission Asset Fund provided no‑interest or small loans, financial counseling and attended vendor outreach events; staff reported roughly $134,000 in loan disbursements through February 2025 and more than 1,100 technical‑assistance contacts during the contract. - Studies: The city funded three consultant studies — an economic and cultural impact analysis, operational models analysis, and an alternate‑sites assessment. The economic study characterized the flea market as a major economic hub, generating large visitor counts and merchant sales under current conditions. - Singleton site: Of the eight sites studied, staff said the Singleton landfill is the only long‑term viable option for a relocation large enough to support the market’s scale. Staff warned the site has major constraints: remediation because of prior landfill use is expensive (staff cited consultant estimates of $3–$4 million per acre for mitigation), development costs are likely higher on a landfill site, and the parcel remains subject to the California Surplus Land Act (which prioritizes affordable housing uses). Staff reported the city was denied a Surplus Land Act exemption in April. - Timing: The market owner has postponed any 1‑year closure notice until at least Dec. 31, 2025, so the earliest possible closure under the owner’s current timeline would be Dec. 31, 2026. Staff said no redevelopment application was imminent.

Council action: After public testimony from dozens of vendors, nonprofit partners and community supporters, the council approved a motion directing staff to pursue an RFP process for the Singleton site in accordance with the Surplus Land Act, to coordinate with partner agencies and to report back to the Community & Economic Development Committee with tangible steps and a timeline. The motion passed 9–1 (Dwan opposed; mayor absent).

Why it matters: Vendors and small businesses say the Berryessa Flea Market is an incubator for microbusinesses and a major regional attraction; advocates warned that dispersal without a viable relocation would destroy income for hundreds of families. Staff said no easy relocation exists and that the Singleton site requires mitigation and a statutory process before it can be repurposed.

Next steps: Staff said it will return with a clearance plan for the Surplus Land Act step, further site viability analysis, updates on vendor transition fund disbursements, and continued vendor outreach. The city will also report vendor‑fund spending and outreach outcomes to the council committee.