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San Jose selects Prologis as preferred developer for 159-acre RWF site, authorizes exclusive negotiations
Summary
The City Council picked Prologis as the preferred developer for 159 acres at the San Jose–Santa Clara Regional Wastewater Facility, authorizing an exclusive negotiating agreement (ENA) and directing staff to pursue environmental, labor and community safeguards as part of future project design and CEQA review.
San Jose—s City Council voted unanimously on Nov. 18 to select Prologis as the preferred developer for 159 acres at the San Jose–Santa Clara Regional Wastewater Facility and authorized the city manager to enter an Exclusive Negotiating Agreement to start design, financing and CEQA work.
The council endorsed staff—s recommendation after a lengthy presentation from city real-estate and planning staff who said the site has a 250-megawatt power commitment from PG&E and is suited to a mix of data centers and advanced manufacturing. Manuel Pineda, deputy city manager, described the package of next steps: an ENA that can run two years with optional extensions, followed by CEQA review and a future ground-lease authorization brought back to the council.
Why it matters: Staff estimated the development could generate tens of millions of dollars in annual utility taxes and possessory-interest revenues for the city at full build-out, while proponents said the project would create construction and maintenance jobs. Kevin Ise, director of real estate, said the RFQ process received three qualified responses and that Prologis—s concept would split data-center buildings into separate parcels with independent substations to comply with California rules.
Public reaction was mixed. Labor representatives from the South Bay Labor Council and multiple trade unions urged the council to require project labor agreements, local-hire goals and workforce pathways. "We strongly urge the council to approve the project and require good union construction jobs and pathways for local and economically disadvantaged workers," said Jack McGovern of the South Bay Labor Council. Environmental and neighborhood groups warned about water, habitat and sea-level-rise risks, and urged stronger, enforceable safeguards before large-scale development.
Council direction and conditions: Councilmembers combined staff recommendations with a set of council memos emphasizing (a) engagement with the Alviso community, (b) protection of adjacent burrowing-owl habitat and coordination with habitat agencies, (c) requirements to prioritize San Jose Clean Energy and recycled water where feasible, and (d) negotiations on labor and community benefits. Councilmember Cohen moved the combined motion; the council approved it unanimously.
Next steps: If the ENA is executed, Prologis will refine project design, submit environmental review documents and negotiate terms of a ground lease; the council will review any final development agreement after CEQA. Staff signaled that Santa Clara city council must also approve parallel actions for the joint RWF lands.
Provenance: The RFQ selection was introduced by staff beginning in the presentation at the start of Item 8.2 and concluded with the council—s vote to authorize negotiations and the ENA.
