Searching for Goog

Last week, Apple announced that next year’s MacWorld would be its last.  In a related article, the SF Chronicle reported that several other large trade shows have been cancelled, and that the city would take a direct financial hit as a consequence.  The article offered a quote from an industry expert who declared the days of large-scale trade shows to be over.

Meanwhile, San Jose continues to make plans for a $300 million expansion of the convention center.  Rather than spending $300 million on the expansion, why not entice Google to buy the Sobrato Tower (now owned by Oracle) with a $100 million subsidy?  Think about it…a Google move to the downtown would be a huge (and permanent) financial shot in the arm for the hotels, restaurants, and merchants. 

Google has plans for a huge expansion near their existing campus.  But, Google is also very committed to protecting the environment and establishing eco-friendly policies.  Is it really “eco-friendly” to tear up the earth, pour acres of new concrete, and produce tons of new steel when they don’t have to…when a structure that would meet all of their needs already exists?  How great it would be for Google to have a signature building within walking distance to a convention center! 

Someone should crunch the numbers here.  Would a $100 million subsidy to bring Google to the downtown generate more activity than a $300 million expansion of the convention center?  And, if the days of the large trade shows are indeed over, isn’t a $300 million investment in a bigger facility a real gamble?

17 Comments

  1. Pete,

    Googles new campous is going to be made of bamboo, re-forested wood, recycled cans and recycled plastic. 

    So no worries of environmental damage and concret!

  2. Patient,

    You make an excellent point.  But, alas, the RDA is not interested in sensible, yet boring, investments in infrastructure.

    As far as I can tell, there are two rules regarding use of RDA funds: 1) there are no areas outside of Downtown that are worthy of large projects; and 2) any suggestion made by the citizenry will be met with excuses as to why it’s illegal to use funds in such a manner. 

    I’m not ashamed to say that, were I given the chance, I’d vote to disband Redevelopment Agencies statewide and redeploy the tax increment funding to higher and better uses.

  3. Pete, you are right on with your thought process.  (Although Google sounds like shooting for the moon, good luck!)

    All the subsidies to expand the Convention Center, build high rise condos, giving face-lifts to buildings, etc. have absolutely no effect on the viability of our city.

    Companies and jobs do!  Keep up the good work and do everything you can to bring large scale employers to the city.

    Once the people and companies are here, the rest of the feel good RDA project will happen…and probably happen without the RDA.

  4. The City has provided incentives and invested in many projects over the last few years, but there is one project that needs more attention…

    This month is the four year anniversary of the closure of San Jose Hospital.

    The hospital employed hundreds of people and served as the anchor of a thriving medical services district in downtown San Jose.

    Large scale healthcare facilities generate jobs, tax revenue, and serve a critical function as a community asset.

    Clinics that employ hundreds of medical professionals and serve tens of thousands of patients have opened recently all over the Bay Area – why not in San Jose? A small scale hospital is under construction in San Carlos – why not in San Jose?

    Of all the economic development and RDA projects in San Jose, healthcare development should be the number one priority – especially considering the gap left by the closure of San Jose Hospital. Given $300M, would you rather see it invested in something like a new downtown hospital or healthcare facility, or for expanding the Convention Center? Where are our priorities?

  5. Mr. Campbell,
    I find it hilarious that you based your entire post on 1) the current bad economy, which is (yes) cancelling trade shows but won’t last forever and 2) the words of some so-called “industry expert.”  I myself find the $300 million INVESTMENT into our convention center to be money well spent; which will pay off big in the future.  By the way #5, we didn’t need you in San Jose anyway.

  6. First of all, the title of the piece should read, “Searching for Google.”
    Tony D:  I hope you’re right, that it isn’t the end days of big trade shows, but when MacWorld (one of the biggest and the best) calls it quits, that causes me to pause.  Perhaps we should remember, that the same folks who promised that the Grand Prix would generate millions, are now saying that a $300 million expansion is a sure win. What’s the harm in making a play for Google?  (What a partnership that would be!)

  7. Everyone, if Google were to come to San Jose the best location is the Reid-Hillview airport in East San Jose.

    Aside from the fact that the 180 acres wasted on RHV would now be put to a constructive use, and bring in much needed tax revenue for the county and city, there are other benefits.

    East San Jose would benefit by workers buying, currently, inexpensive houses with decent size lots, and being able to walk or bicycle to work.  Of course, as the area improves the increased property tax revenue helps our struggling county.

    Light rail down Capital Expressway would actually be useful.

    Eastridge Mall would benefit by the additional buying from the workers and new residents.

    The Mercedes and Infinity dealerships across the street would sell more cars.

    The school system would improve as better students and concerned parents become involved with the system.  A better school system would then benefit the less fortunate students.

    San Jose would improve as East San Jose becomes a more desirable location.

    Traffic on 101 would improve as workers who used to head north to Mountain View now exit onto Capitol Expressway.  Southbound 101 from Santa Clara on south is the reverse commute in the morning so workers coming from the north have an easy commute.  And in the evening the commute north is the reverse commute.

    Using the land wasted on RHV for a postive change in society is to great an opportunity to miss.  Since general aviation is an overwhelmingly recreational, and luxury, activity, the airport is virtually unused now.  Even the rich realize that wasting money on general aviation does not make any sense these days.

    This is the perfect time to improve society and benefit all of us.

    Let’s bring Google to East San Jose.

  8. Pete,

    I think your point is great.  The only problem is that it makes to much sense, and in this City, if it makes to much sense, it won’t happen.  Plus, the Mayors office, The RDA along with the City Managers office has there priorities all backwards.  You’ll be lucky to get a pulse of out of our current mayor. Unless you’re connected like our good old friend Tom.

    Great point though!

  9. #14

    Google’s billionares already have private use of Moffett Field, while all of us mere millionares have to use the rest of the airports.

    Of course, if RHV were developed for Google they could use helicopters to go between Moffett and their campus.

    “In the annals of perks enjoyed by America’s corporate executives, the founders of Google may have set a new standard: an uncrowded, federally managed runway for their private jet …”

    http://www.nytimes.com/2007/09/13/technology/13google.html

  10. Recently visited the Computer History Musuem located near the Google Campus.  Google is spread all over east of 101 and north of Moffett.  Driving around the area at lunchtime you see Google employees everywhere.  They all are look young 20 and 30 year old “nerdy” types. 
    What an asset Google and their bright young employees would be for Downtown San Jose.

    I greatly enjoyed my visit to the Computer History Museum.  The large collection of early computers brought back memories.  I still have some of these anatiques including a SWTP printer, Curta, Marchant and Monroe crank calculators.  I still have my K+E slide rule from my days at SJSU.

    Seeing a demonstration of Charles Babbage’s Difference Engine No. 2, designed 160 years ago, is worth the visit by itself. This fantastic machine will be here only till May. 
    Unlike the Tech, the CHM does not charge admission.
    pgp3

  11. MacWorld is not ending. Apple is simply not going. They are so big now that they don’t even have to promote themselves there. The cult is strong enough.

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