Santa Clara City Council Rejects City Manager’s City Hall and Agnews Land Swap

By Robert Haugh

City Manager Jovan Grogan suffered a major political defeat Tuesday night when the Santa Clara City Council rejected his proposal to pursue a land swap that could have moved City Hall to the former Agnews Hospital site.

The Council voted down an exclusive negotiating agreement with Valley Oak Partners that would have started formal negotiations over trading the current Civic Center property for land at 4220 Network Circle, the former Oracle-owned Agnews site.

The vote was a major setback for Grogan.

For months, City Hall relocation has been one of the administration’s biggest behind-the-scenes priorities.

Santa Clara News Online reported in December that the City had set aside more than $20 million to move City Hall to the Agnews campus as part of a possible land swap deal.

Now, five months later, the Council has rejected the first major step toward making that plan a reality.

The proposal would have exchanged 10 acres at the current City Hall site for 27 acres at Agnews. Valley Oak Partners would then use the Civic Center land to build 584 market-rate apartments.

Councilmembers and residents were not convinced.

The Council voted 3-3 for Grogan’s proposal, and it fell short of the four votes needed.

“I think that moving ahead without a full and transparent civic, public process is a generational mistake,” said Mayor Lisa Gillmor

Gillmor, Councilmembers Raj Chahal and Kevin Park voted against.

Councilmembers Albert Gonzalez, Suds Jain, and Karen Hardy voted in favor.  

Councilmember Kelly Cox was absent.

The defeat comes at a bad time for Grogan.

Yesterday, SCNO reported that survey respondents faulted City Staff and Grogan for Downtown delays. 

Several respondents specifically criticized Grogan’s interest in relocating City Hall, saying it had distracted from the City’s long-stalled Downtown revitalization effort.

A resident who requested anonymity said Grogan “wants to move City Hall somewhere else and waste $20M of residents’ money.”

Tuesday’s vote gave those critics more ammunition.

Public commenters said the City never asked residents whether City Hall should move, whether the Civic Center should be redeveloped, or what alternatives should be considered.

The Council eventually voted to create a citizens advisory committee and conduct a City Hall needs assessment.

Park was the lone vote against creating the committee. Park said he worried the committee would create “priorities in isolation” and pull away from a more cohesive design process.

9 comments

  1. We are out in force talking with the voters and getting the same answer out of 4/5ths of them. Those who are running for mayor better get out there and do the same. The citizens are embarrassed they are the only city in the Bay Area without a Downtown. The Downtown was destroyed by others, but the reason Santa Clara remains without its original Downtown is due to the inactions of these current leaders and those they hire. We are done listening. We are counting votes – those who VOTE for the Downtown will be endorsed- those who don’t or can’t will not.

  2. Can someone remind me why Deanna Santana was “Fired”? I mean even Jeff Houston has obviously heard enough already!!!
    Classic picture for sure, maybe when he wakes up we can send him a framed picture to hang on his wall!!!
    Ok, back to something actually relevant.
    All of this, and I mean “All of this” is just smoke and mirrors. Very basic diversionary stuff with just one goal in mind, get our City thinking / planning and stressing on anything else but watching the 40Whiners use our City as nothing more than just a large “Money Grab” opportunity.
    Think about it, every minute our City has spent spent thinking / pondering / planning / and focused on anything other than the 49ers just using our City like a cheap cash register is a real win for the 49ers. Just a sad reminder that no matter what we ever do to help the 49ers, it will never be enough. Dealing with the NFL just means that no good deed will ever go unpunished.
    So just a plain and simple fact, want to rob a store, just start a little tiny garbage can fire in the back room. Everyone will get excited and focused on that one small fire. And at that time you just grab what you want and walk out the front door.
    Tell me this does not make sense?

    Just the Fact’s Ma’am

  3. It is great to see that the land swap did not go through. It would be good if the three council members that voted for it would actually reach out to see what their constituents would like. After all, that’s who they’re supposed to represent.

    Our city is plagued with special interest and empire building. I’m happy to see something detrimental to the city not passing.

    • Good point, Richard. But when has suds jain ever listened to the constituents?

  4. Jain shows once again he is a complete failure and coward. Jain rejected downtown residents. He was Becker’s uniindicted co conspirator. A talking and useless fool!

  5. For years, residents have watched this property sit on the market with no buyers. If it were truly the “great opportunity” Grogan claimed, it wouldn’t still be unsold after four years. Our community deserves transparency, and the reality is clear: the Agnews/Oracle land is worth only a fraction of the current Civic Center site. Swapping them would have meant walking away from an estimated $20–$50 million in value — money that belongs to the people of this city.

    More importantly, this deal would have jeopardized something our community has been fighting for over decades: the return of a real, vibrant downtown. The Civic Center site is one of the last major pieces of prime land. Giving it up would have set our city back for a generation.

    Many residents spoke up because we care deeply about the future of our neighborhoods, our local economy, and our shared identity. I was proud to stand with them at the Council meeting. And I’m grateful that Mayor Gillmor, Councilmember Park, and Councilmember Chahal listened to the community and made the decision that reflects our long‑term priorities.

    This wasn’t just about land. It was about protecting our future and ensuring that residents — not developers — shape the direction of our city.

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