The Loma Prietan
August/September 1999
Cisco Development Threatens Coyote Valley
by Julie McLaughlin
When most people think of Santa Clara County, they think of large commercial buildings, apartment housing and lots of traffic. South San Jose's Coyote Valley, located just north of Morgan Hill defies these notions with its immense open space and fields of farm land. A pilot flying above would likely think that the agricultural patchwork is a fixture of the land, but anyone driving through can't miss the large commercial signs that foreshadow its destruction.
Coyote Valley is divided into three separate planning areas by San Jose's General Plan. The northern 1400 acres of the valley are already designated for industrial development. The middle 1700 acres are designated as an Urban Reserve to support the many employees that industrial development will surely bring. The southern portion is described as the "Coyote Greenbelt". According to the General Plan, this "Greenline" was installed to "define the ultimate perimeter of urbanization in San Jose... and to preserve open space." There is also the adjacent South Almaden Reserve that will most likely be developed in conjunction with the North Coyote Reserve.
The Urban Service Area boundary runs along the northern edge of the Mid-Coyote area and would require expansion if the Urban Reserve was developed. The development of the Urban Reserve hinges on three conditions put in place by the San Jose General Plan. First, 5,000 new jobs must be created. Second, the city must demonstrate that its fiscal condition is stable, predictable and adequate in the long term. This is determined on a five-year economic forecast projecting a balanced budget or budget surplus for each year. Lastly, there must be proof that the City services are at or above 1993 levels throughout the city.
Recently, Cisco Systems has proposed building a 400-acre campus on the northern industrial area of Coyote valley. Cisco estimates that it will bring 20,000 new jobs to Coyote Valley. The cost of these new jobs is great: a 400-acre campus and adjacent residential area will destroy the remaining agricultural land that once characterized the entire Silicon Valley. To facilitate this new industry, the valley will require several additional freeway interchanges, railroad overpasses, major storm detention systems and sewage lines. To create these services, Cisco will require extensive public subsidies that could amount to $300 million.
This means that Cisco would not be able to meet the first condition required to open the Urban Reserves for use. For Cisco to use the Urban Reserve, the City Council would have to discard the conditions enabling the reserves to be opened for use. If the City Council voted in factor of Cisco, the taxpayers would carry the burden of Cisco's subsidy. This raises serious questions about the necessity of using Coyote Valley, which is not currently equipped to handle industry and housing, as the site for their new campus. Furthermore, Cisco's campus will put immense pressure on the Greenbelt. If the Greenbelt is not secured, it faces urbanization and industry like its agricultural counterparts.
This is not a case of another commercial building in downtown San Jose. This project involves the destruction of agricultural land, the burden of subsidies up to a possible $400 million, the creation of traffic toward Morgan Hill and the associated ills of urban sprawl. As residents of the Silicon Valley Area, we expect constant growth in the San Jose area. But how much development are we willing to support?