Caltrain site where the transit agency intends to develop 1.1 million square feet of office space next to the Diridon train station and near a section of Google’s proposed transit village. The Caltrain development property is outlined in red. Some of the Google-owned future development parcels are marked with the Google logo. Caltrain’s governing board is eyeing the development of office towers that could sprout at the entrance to the Diridon train station in downtown San Jose and next to Google’s proposed transit village.
SAN JOSE — Caltrain’s governing board is eyeing the development of office towers that could sprout at the entrance to the Diridon train station in downtown San Jose and next to Google’s proposed transit village.
The Peninsula Corridor Joint Powers Board, which governs Caltrain, is planning the development of two office towers and a big plaza that could help link the train station with the transit-oriented neighborhood called Downtown West that Google is planning.
“The concept designs include two office buildings with ground-floor retail and other active uses and a large plaza area between the two buildings,” according to a staff report prepared for this week’s meeting of the Peninsula Corridor Joint Powers Board.
Caltrain expects the two towers would total 1.1 million square feet, according to the staff report.
Nearby, Google wants to develop a mixed-use village of office buildings, homes, restaurants, shops, hotel facilities, cultural hubs, entertainment centers and open spaces in downtown San Jose.
The search giant’s interest in building a new neighborhood near the train station and the SAP entertainment and sports complex has, in turn, spurred wide-ranging plans for the development of new office, residential, hotel, restaurant and retail sites.
The Peninsula Corridor board expects to submit a very preliminary proposal in September to the San Jose planning staff as a trial balloon for the proposed towers project.
A formal and detailed application is slated to be submitted to the city sometime during the January-through-March quarter of 2022.
The city’s final decision is expected until sometime in 2023, after which actual development efforts would begin.
Caltrain, though, doesn’t intend to develop the project on its own but will instead seek out a developer to construct the buildings and the plaza.
“The Joint Powers Board will follow its typical practice, and all legal and procedural requirements, to engage a private sector development partner through a competitive process,” the staff report stated.
Caltrain intends to retain the ownership of the land beneath the two office towers. Caltrain would negotiate a ground lease with the developer the transit agency selects.
“The developer would take on all ‘development risk’ by financing, building and owning all improvements,” the staff report stated. “Caltrain would continue to own the development parcels and would collect rent based on the success of the development.”
