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Google Reassessing Timeline for Massive San Jose Campus

Google is now reassessing its timeline for a massive campus in San Jose. With the wave of tech layoffs in the past few months, some have wondered if the project dubbed “Google West” is in jeopardy.

The project included 80 acres focused around Diridon Station and if the project is delayed, that could also mean the city has to wait longer to receive millions of dollars of community funding promised by google.

The company has already begun demolishing buildings near the site to make way for San Jose West — a mega project that includes 7.3 million feet of office space, 5,900 homes as well as shops and restaurants.

But now Google says it’s reassessing its timeline for the project.

In a statement, Google’s downtown west development director said, “we’re working to ensure our real estate investments match the future needs of our hybrid workforce, our business and our communities. While we’re assessing how to best move forward with downtown west we’re still committed to San Jose for the long term.”

It’s no surprise to the city’s mayor.

“This is not unexpected. Frankly, we know this project would take many years to build so we are going to wait and see how quickly they are willing to go,” said Mayor Matt Magan. “Google is still making investments and housing in our city which is a good sign. “

Nanci Klein, San Jose’s director of economic development says Google has already given the city millions as part of the project.

He said, “7.5 million is already provided to us for helping with housing and jobs for the city.”

Google is also supposed to give $155 million for a community fund that will be used to pay for education and job training for those who might be displaced by the project.

But the company is not required to provide that money until employees move into the new offices downtown and if that’s delayed so is the funding.

With Google recently laying off 1,600 workers across the Bay Area, and many still working from home, some real estate experts we talked with suggest Google may not need as many offices in the future.    

But Klein says even if Google were to sell some properties, the new owners would have to stick with the original agreements the city made with google.

The mayor also says the fact that the state just awarded VTA $375 million to extend BART to downtown San Jose, only makes this project more appealing to Google.

Source: NBC Bay Area

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