By Polina Runova
The company Plotter Pros resides in a building that doesn’t look like much from the outside. Its walls are a simple white, periodically coated in murals by graffiti artists. The whole building is located in a small alley off of the main street, Alameda, in downtown San Jose.
Despite its plain appearance, it turns out the building has more to it than meets the eye. Peter Inshaw, president of Plotter Pros explained that the building “was actually a community center. It was built in the 30s as a roller rink. It’s been a bunch of things that involve the city.”
Plotter Pros, a commercial printing company, is only one of the downtown businesses that might be affected by Google’s expansion in the area. Concerns include rent increases, displacement, and possible loss of valuable buildings.
Today, the building in question is not only home to the company Plotter Pros but also a studio that Mr. Inshaw rents out to artists. He believes the building has done enough for the community to be considered of historical value.
At first Mr. Inshaw had thought that it would be preserved, as “it’s a historical building.” Now he believes this is not the case. “Other historical buildings are being levelled,” he said, mentioning another building that has been around since the 1800s. Today it is a “big hole in the ground.”
Despite his concerns, Mr. Inshaw believes that Google’s expansion might bring benefits as well. “The good part is that it’s revitalizing downtown, which has been stagnant with no plan,” he said. “Actually connecting all the transit has been something a long time coming.”
Referring to both unprotected historical buildings and rent increases, Mr Inshaw said he remains unsure about whether the benefits of the downtown remodel will outweigh the negatives.“I just don’t know the long-term cost of it.”
Although not many people besides Mr. Inshaw expressed a concern for historical buildings, many share a worry about rent. “Those are probably the two biggest concerns,” Mr. Inshaw said. “We lose the building, or can’t afford to be here.”
Google plans to move into downtown San Jose
Nanci Klein is San Jose’s Director of Real Estate and Assistant Director of Economic Development. She explained that Google’s plans for San Jose include “up to 6.5 million square feet of office development,” as well as “a range of housing units.” She added that Google intends to provide amenities, not just office space, in order to make downtown San Jose an area where people can work, live and engage in recreational activities.
Ms. Klein said that “San Jose wants both jobs and housing” and that Google is willing to help provide both. “Many cities have 2.5 to 3 jobs to employed residents. San Jose is approximately 0.76 jobs to employed ratio,” Ms. Klein said. That is an issue that the city hopes to fix through their collaboration with Google.
Ms. Klein explained that there are several negatives that come with San Jose’s lack of jobs. People need to commute in order to go to work, which “puts a lot of people on the roads, and creates more greenhouse gasses.” Giving people work near the place they live would benefit the environment.
Additionally, Ms. Klein said, “There’s a lot of benefit and quality of life for people working closer to where they live.” She explained, “If you just have office [space] and everyone leaves at 6 or 7 in the evening, it’s pretty quiet. But if you have a mix of uses, which incorporate jobs and residential, it can be very, very lively.”
There are still several things that need to happen before Google can start breaking ground. “There is an entitlement process, which we hope will be completed by the end of 2020. Then there will be the process of design and building permits,” Ms. Klein said. She added that this estimate could change, depending on the economic state of the country. “Things can be approved, but if the community, the United States, or the world is in a down trend, that will potentially limit what time frame is needed for beginning construction.”
Ms. Klein said that, for the past years, it has been difficult for the city to “provide fundamental services to our residents and our businesses.” The city of San Jose is hoping that working with Google will help to “provide as much equitable development and quality mobility, to have the array of jobs, to make them available to San Jose residents,” Ms. Klein explained, adding that, “It’s a really important part of our economy and community.”
People of downtown react to Google’s plans to expand
Denise Luna is a manager of an auto repair business called Babe’s Muffler and Brakes. Ms. Luna is new to the area, and has heard “little” about Google’s plans to expand. “I just heard the rents might go up,” Ms. Luna said. “Around here, they are already expensive as it is.” Although not terribly worried about her business’ displacement, Ms. Luna has noticed that some people were “already moving out.” She added “that right there, could affect our business, because we get a lot of people who live around here to do business with us. They move out – there goes our business.”
Others are hoping that, on the contrary, Google’s expansion will bring about more jobs and opportunities for business. Eric Johnson is the owner of a bookshop called Recycle Bookstore. Mr. Johnson is expecting that the expansion will bring more activity to downtown San Jose. “The more density you have, the more activity you have,” Mr. Johnson said. “And that tends to be, on the whole, a good thing.”
Mr. Johnson has also noticed the increase in rents, but he hopes Google will also bring an increase in business, which will allow him and others to cover the increasing rents. “Sometimes a small business can pay a little more rent, it depends on whether or not the area increases the business at all.”
Google’s expansion has already affected other cities
Google first came to Mountain View when it leased office space from SGI’s campus, back in 2003. The campus was purchased a couple years later, and then transformed into Google’s corporate headquarters, Googleplex. When the plans for Google’s expansion in Mountain View were first suggested, people had mixed feelings about this development. Some were hoping for more business, while other feared rising housing prices and displacement. Now, roughly fifteen years later, local businesses confirm that Googleplex came as a mixed package.
The Google campus is pristine. The trees are aligned; the hedges are trimmed; and the sidewalks are clean. Everything appears to be taken care of. Nearby, a construction site is fenced off where Google is working on another building. However, just a few streets down, everything looks different.
Smaller businesses, while agreeing that Google has brought some benefits, admit that many people are now struggling to keep up with rising rent prices. Some businesses have trouble finding new employees, as many people have been forced to move because of the rising rent prices.
“Finding employees is very difficult,” Joy McCarthy said. “They can’t find housing in the area.” Joy McCarthy runs a cleaning service called The Maids. It is a family business, currently owned by her mother. Ms. McCarthy, in addition to running The Maids, is also a renter. As a result of Google’s expansion, Ms. McCarthy notices that “rents have definitely climbed significantly.”
Concerns with housing seems to exist all around town. A local business owner, who asked to remain anonymous, said that small companies like his family business are less and less likely to be able to “afford to work our family business in the area”. These are people who have been in Mountain View for ages. “I’m born and raised here, so I’ve been here almost 40 years, and I’ve absolutely seen a major change. My father’s been here 65 years, and he can obviously tell you times have changed.”
Although the family business has been in the area for what can seem like forever, it is possible they might have to leave the area because of the rise in rent pricing. “Major developers see more value in retail office space, or commercial office space, vs warehouse space,” the family business owner said. “Small companies like myself, we rely on being able to operate in a warehouse capacity.” This is why the owner foresees that they “will likely be forced to move within the next three or four years.”
Not everything people say about Google is negative, however. “As a matter of fact, we do work for Google. When Google buys some of these buildings here and in the peninsula area, we are hoping that we get contracted to go do some of that flooring work,” the family business owner said. “So there is benefit in providing when they’re building new homes, when they’re building new office space. It is bringing more job opportunities to those local businesses.”
Another local business says they got more good out of Google’s expansion than bad. Omega Printing is a commercial printing company, located nearby Googleplex. Jesselyn Hernandez, a graphic designer at Omega Printing said “for us, we’re printers, so it’s actually a positive, because the new starter companies, we start printing for them.” She added that once these startup companies, “start growing bigger and bigger, they go somewhere else because we’re this small little business”.
Google’s expansion in Mountain View has indeed been attracting many beginning companies to the area, and in this way provides business for the local companies. Ms. McCarthy agreed that every now and then there’d be “a little more business from people moving in and out.”
“It depends on who you ask,” Ms. Hernandez said. She explained that, overall, there are both benefits and negatives to Google’s expansion. “For us, like I said, the pros are overcoming the cons. For new people, that are coming into the city, I would gauge more negatives.”
Google’s plans to expand in San Jose affecting Willow Glen
Although Google’s expansion is going to take place in downtown San Jose, the indirect impact could be felt all the way in Willow Glen.
Mark Larson, a film history teacher at Santa Clara University, lives a 15-minute walk from downtown Willow Glen. He brought up the idea that Google’s expansion will bring about a change in the community’s mindset.
Willow Glen hasn’t been affected by “anything that they’ve done concretely, of course, because no one’s broken any ground or anything,” Mr. Larson said. However, Mr. Larson added, “I think it’s the psychological effect, where this giant company comes into your town and sort of starts taking it over. I think that affects how you think, and the space that you live in, and the idea of community.”
Mr. Larson suggests that whenever a big company such as Google comes to a community, many things change. “You lose the character; you lose the history; you lose the small businesses that can’t keep up; or you lose the employees for your restaurant or for your little shop that you’re trying to run because they can’t afford to live in the community.”
Mr. Larson explained that, once Google moves in, whenever he goes to the Diridon train station in downtown San Jose, he’ll “have to walk through their whole campus, their whole corporate headquarters, just to go to the train.” Mr. Larson feels downtown San Jose will become a completely different place. “I won’t be in San Jose; I’ll be in Google Land.”
It appears downtown San Jose isn’t the only place where Google is making its presence known. “Here in Willow Glen, where we live, we’re famous for our nice little downtown, Lincoln Avenue, where all the shops are,” Mr. Larson said. Recently, however, there’s been a change.“We saw this sign that went up, put up by Google, saying ‘Google Glen’,” Mr. Larson said. He feels that Google is “putting their imprint on our little community here, our little neighborhood. And that’s upsetting because you want to have your own identity, whatever we decided we wanted to be.”
Mr. Larson added that although the mental effect is the most prominent one, there are other concerns in the Willow Glen area as well. “We do rent our home, and we’re absolutely scared out of our wits that our landlords will sell the house because of the Google effect,” Mr. Larson said. If that were to happen, he fears he and his family would “ have to move somewhere.” Mr. Larson explained, “That’s happened to so many people that we know; you hear about it on the news. We’re very scared of that, and we’ve never had to worry about that before.”
Local news stories support Mr. Larson’s story. For example, the Mercury News reported that about a year ago, Decron Properties, a real estate investment firm, bought an apartment complex in Willow Glen. Mercury News wrote, that because of increasing prices in the housing market, “apartments are becoming increasingly attractive alternatives.”
The apartment complex is only “a short rail ride from Google’s proposed transit village in the downtown area.” Mercury News reported that David Nagel, president of Decron Properties, said “The proposed Google campus was a compelling reason for us and our investors to acquire this well-located property.” It appears Google’s expansion is affecting the decisions of other large companies, even those located away from downtown San Jose.
“I really don’t have a solution to it,” Mr. Larson admitted. However, he did say, “I think one thing that would help, though, is if people had more of an awareness for their community, about the impact it might have, for their own sense of identity.” Mr. Larson believes it’s important to keep the people informed. Sometimes communities “get very excited about stuff like this,” Mr. Larson said. “I think they rush too quickly into accepting it.”
Changes await Downtown San Jose
“There are going to be so many changes that come,” Ms. Klein said. She anticipates new amenities and resources to come into the area “in terms of retail, in terms of BART, in terms of additional streetscape, additional places for people to gather,” as well as “jobs, housing, and affordable housing.”
“It might pretty much upscale the area,” Mr. Johnson, owner of the Recycle Bookstore said. “The fear would be that smaller businesses that survive on slightly lower rents might be priced out of the area.”
Mr. Johnson also said, ”You have development and it tends to uplift America sometimes as well.” He can imagine both positive and negative outcomes from Google’s expansions. “It’s kind of up to the city to kind of balance and see what the effect on the community is going to be,” he said.
Ms. Klein agrees, that the city has “the opportunity and the responsibility to do it in a way that is positive for the community.” She added that the city hopes “to mitigate and minimize any potential negative impacts from the project.”
For example, Ms. Klein brought up that “there is very much a concern that bringing 20 to 25 thousand additional people down to San Jose can cause pressure.” Many people are expected to come into the area Google plans to move into. “It’s an interesting statistic that was shared with me recently, “Ms. Klein said. “The number of people that are projected to go through Diridon [in one day] by, say, 2040 will be the same number that go to the San Francisco Airport in a day.”
The general increase of activity in San Jose means there are going to be “more people who want to be in the area, who are willing to pay more for houses and/or rental apartments in the area,” Klein said. “City of San Jose is paying a lot of attention to issues relating to any potential displacement.”
Ms. Klein adds that there is a big difference between Google’s Mountain View expansion and Google’s San Jose expansion. “In Mountain View they are very much a campus,” Klein said. “In San Jose we are working with them to be integrated into the city and that will make a tremendous amount of difference into what is created.”
Ms. Klein explains that the city is trying to protect both the people, and the culture of the city. This includes buildings in the area. “In San Jose, like many other places, there are buildings which are landmarks which will absolutely be retained,” she said.
She also added that some buildings, might be “adapted” into the developing area. For example, “there are buildings where only what is retained are the facades, so that the building can be redone to make it much more efficient,” while “in some instances there is development over those buildings, so you have what’s referred to as air rights,” Ms. Klein said.
Ms. Klein explained that this is “not because of the Google project, but just part of regular development considerations,” and that similar remodeling is happening “in many, many cities throughout the country”.
There might be many changes coming to San Jose, but Ms. Klein believes the city will keep it’s own cultural personality throughout the development. “San Jose is blessed with a wide ranging diversity, and that’s the kind of city that we want to continue to be,” she said.
“I am personally not terribly worried about this.” Mr. Johnson said. “Cautiously optimistic, let’s put it that way.”
“People will adjust and figure it out,” Mr. Inshaw, president of Plotter Pros, added. The community of downtown San Jose is “just kind of waiting to see,” he said. “It’s years away, but it’s already having an effect.”
Feature Image (at the top of this post): A street going through the Google Campus in Mountain View is labeled Google. PHOTO CREDIT: Polina Runova