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San José council approves exclusive negotiations with Prologis for 159-acre RWF site
Summary
The City Council voted unanimously Nov. 18 to authorize the city manager to enter exclusive negotiations with Prologis for 159 acres at the Regional Wastewater Facility, beginning an extended review and design process that will include CEQA review and community outreach in Alviso.
The San José City Council voted unanimously on Nov. 18 to authorize exclusive negotiations with Prologis for development of 159 acres at the Regional Wastewater Facility (RWF), following staff recommendations and public testimony from labor and community groups.
The action starts a multi-year process in which Prologis — selected through a request-for-qualifications (RFQ) panel — will negotiate terms for an exclusive agreement to develop the site and prepare design and financing plans. Kevin Ice, assistant real estate director, said the RFQ invited three qualified respondents and the panel recommended Prologis as the preferred developer and Catellus DK as the alternate. “Prologis' concept divided the site between data centers and advanced manufacturing, and the company proposed to self-finance 100% of infrastructure costs,” Ice said during the staff presentation.
Why it matters: the property is jointly owned by San José and Santa Clara and sits in an industrial buffer around the regional wastewater plant. Staff and council framed the decision as a first step that preserves the city's ability to negotiate environmental protections, community benefits and labor standards while capturing lease revenues and other tax-equivalent receipts to support city services.
Council members and public commenters discussed environmental and labor issues. Community speakers urged stronger requirements on water use, wildlife habitat protection and clean energy; labor representatives and construction trade unions said the project could generate union jobs and urged project labor agreements. As one public speaker said, “This project represents a major opportunity for San José to drive good jobs and community benefits,” supporting the staff recommendation.
Next steps: the exclusive-negotiation agreement authorizes staff to begin negotiations with Prologis and return to council for project milestones including CEQA review, detailed design and any lease or ground-lease approvals. Councilmembers emphasized that environmental review and future actions will be required before any construction occurs.
Vote: motion approved unanimously. The staff recommendation, the council group memorandum and related community memos will guide negotiations and expected conditions for labor, water, habitat protection and energy standards.
