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Is Irvine Company looking to acquire Santa Clara's Great America theme park?
The Irvine Company, which already is spending billions on massive projects all over Santa Clara, may be looking at the ultimate land play there: The 116-acre Great America theme park.
Metro Silicon Valley's Josh Koehn reports in a cover story on Santa Clara politics today that Mayor Jamie Mathews "took part in a private meeting sometime in the last two years with executives of the Irvine Company, in which he led a presentation that included a model of the Great America theme park grounds where rollercoasters were replaced with high-density housing, retail and office space." The piece suggests that Irvine may be working with the San Francisco 49ers on a major development play. Great America is located next door to Levi's Stadium.
I can confirm that Irvine Company has floated redevelopment plans for the Great America site with city officials more than a year ago, but it's unclear how serious those plans were, whether they still exist, and what the reception would be from city council members, who would have to approve them. Since then, Irvine has not showed off the proposal, sources have told me, and nothing was ever formally turned into the city planning department.
City Manager Julio Fuentes did not deny discussions had taken place when I got the chance to ask him about it on Wednesday.
"I think there have been a number of companies over the years that have always been interested in that property," he said. "What we???ve discussed is a number of things with developers, with potential developers with a lot of what ifs."
The land underneath Great America had been owned by the city, but following series of events is now owned by the Successor Agency to the Santa Clara Redevelopment Agency. It's part of a huge sell-off of former redevelopment holdings that's happening this year.
The Metro story's larger topic is growing scrutiny around the stadium, its finances, and relationship between the city and the 49ers, as well as the future of City Manager Julio Fuentes. It's worth a read in its entirety, and you can do so by following this link.
Redeveloping Great America would potentially add a huge amount of office, retail and hotel development in an area that's seen massive projects proposed in the last few years, including a veritable new city on city-owned lands just north of the stadium.
Irvine company spokesman declined to comment. A 49ers spokesman didn't immediately comment.
Mayor Matthews told me in an email: "I don't remember them ever making a presentation or seeing any plans. I certainly didn't lead any discussion."
Get the business scoop you need to start the day with our free Morning Edition email.
But as I reported back in December, the Great America parcel is most definitely in play. The ground on which the theme park sits had been owned by the city's redevelopment agency. After the state blew up redevelopment across California, cities have been forced to transfer those assets to "successor agencies," which are selling off those land holdings to the highest bidder. (Technically, those successor agencies are not controlled by the city, and are instead managed by an independent oversight board.) Offers will be accepted sometime this year.
Great America's owner, Cedar Fair, has a right of first refusal for the site, which has a proposed sale value of $155 million. In December, Great America General Manager Raul Rehnborg told me that the company was considering exercising it. (The theme park operator's lease with the city runs through 2074.) So any designs by Irvine on the site would need to get Cedar Fair on board in some way ??? either by agreeing to sell its lease to Irvine or by entering into some kind of partnership. (For instance, it's possible Great America could shrink in some way, thereby sticking around in some fashion and freeing up land for development.)
Rehnborg reiterated his comments to me again today, highlighting plans to add new attractions, shows and events.
"In light of the fact that our ground lease runs through 2074 we have the necessary control of the property to pursue our long-term vision," he wrote. "In addition, we have also created enough financial flexibility to exercise our right of first refusal for the purchase of the property and that option will be considered as the land sale process moves forward."
Irvine's interest in Great America is not surprising. The company in recent years has burst onto the city's development scene in a big way, with millions of square feet of office and thousands of residential units under way. ( Click here for my cover story from 2015 about the company's growth there.) Great America represents one of the largest possible development plays left in the largely built-out city.
As for the 49ers potential involvement? It would make plenty of sense: Sports teams are more and more getting into the development business. Just look at the San Francisco Giants' massive "Mission Rock" proposal in that city, which would include 1,500 apartments and 1.3 million square feet of commercial. And the 49ers have looked at development before: Last year, the team tried to lease the city's Youth Soccer Park next to Levi's Stadium, a move that generated a huge backlash. While the team said it planned to use it for parking, sources tell me the long-term play was real estate development. (It's worth noting that the team's training center next to Levi's, which could also be part of a future redevelopment, is cut off from the main thoroughfare, Tasman Drive, by the soccer park.)
But there are good reasons for Santa Clara to not smile on any potential Great America dreams. The city is currently working through the development plans for a massive city-owned golf course and open space park with the Related Companies just north of Levi's Stadium. The plan includes millions more square feet of office and retail for the site, which Related would lease from the city. Allowing a mega-project with Irvine Company would likely not be welcomed by Related as it would create more competition for a finite number of tenants.
And, a caveat: Irvine Company looks at a lot of deals, and only executes on some of them. The company, which is controlled by its billionaire owner, Donald Bren, is among the most aggressive buyers of real estate in Santa Clara and Silicon Valley, but not every possible transaction, well ... transacts.
In any event, it's probably only a matter of time before Great America and other sites around the stadium redevelop. Silicon Valley is growing, land values are rising, and pressure is increasing to use property to its highest and best use.
Nathan Donato-Weinstein covers commercial real estate and transportation for the Silicon Valley Business Journal.
The Irvine Company, which already is spending billions on massive projects all over Santa Clara, may be looking at the ultimate land play there: The 116-acre Great America theme park.
Metro Silicon Valley's Josh Koehn reports in a cover story on Santa Clara politics today that Mayor Jamie Mathews "took part in a private meeting sometime in the last two years with executives of the Irvine Company, in which he led a presentation that included a model of the Great America theme park grounds where rollercoasters were replaced with high-density housing, retail and office space." The piece suggests that Irvine may be working with the San Francisco 49ers on a major development play. Great America is located next door to Levi's Stadium.
I can confirm that Irvine Company has floated redevelopment plans for the Great America site with city officials more than a year ago, but it's unclear how serious those plans were, whether they still exist, and what the reception would be from city council members, who would have to approve them. Since then, Irvine has not showed off the proposal, sources have told me, and nothing was ever formally turned into the city planning department.
City Manager Julio Fuentes did not deny discussions had taken place when I got the chance to ask him about it on Wednesday.
"I think there have been a number of companies over the years that have always been interested in that property," he said. "What we???ve discussed is a number of things with developers, with potential developers with a lot of what ifs."
The land underneath Great America had been owned by the city, but following series of events is now owned by the Successor Agency to the Santa Clara Redevelopment Agency. It's part of a huge sell-off of former redevelopment holdings that's happening this year.
The Metro story's larger topic is growing scrutiny around the stadium, its finances, and relationship between the city and the 49ers, as well as the future of City Manager Julio Fuentes. It's worth a read in its entirety, and you can do so by following this link.
Redeveloping Great America would potentially add a huge amount of office, retail and hotel development in an area that's seen massive projects proposed in the last few years, including a veritable new city on city-owned lands just north of the stadium.
Irvine company spokesman declined to comment. A 49ers spokesman didn't immediately comment.
Mayor Matthews told me in an email: "I don't remember them ever making a presentation or seeing any plans. I certainly didn't lead any discussion."
Get the business scoop you need to start the day with our free Morning Edition email.
But as I reported back in December, the Great America parcel is most definitely in play. The ground on which the theme park sits had been owned by the city's redevelopment agency. After the state blew up redevelopment across California, cities have been forced to transfer those assets to "successor agencies," which are selling off those land holdings to the highest bidder. (Technically, those successor agencies are not controlled by the city, and are instead managed by an independent oversight board.) Offers will be accepted sometime this year.
Great America's owner, Cedar Fair, has a right of first refusal for the site, which has a proposed sale value of $155 million. In December, Great America General Manager Raul Rehnborg told me that the company was considering exercising it. (The theme park operator's lease with the city runs through 2074.) So any designs by Irvine on the site would need to get Cedar Fair on board in some way ??? either by agreeing to sell its lease to Irvine or by entering into some kind of partnership. (For instance, it's possible Great America could shrink in some way, thereby sticking around in some fashion and freeing up land for development.)
Rehnborg reiterated his comments to me again today, highlighting plans to add new attractions, shows and events.
"In light of the fact that our ground lease runs through 2074 we have the necessary control of the property to pursue our long-term vision," he wrote. "In addition, we have also created enough financial flexibility to exercise our right of first refusal for the purchase of the property and that option will be considered as the land sale process moves forward."
Irvine's interest in Great America is not surprising. The company in recent years has burst onto the city's development scene in a big way, with millions of square feet of office and thousands of residential units under way. ( Click here for my cover story from 2015 about the company's growth there.) Great America represents one of the largest possible development plays left in the largely built-out city.
As for the 49ers potential involvement? It would make plenty of sense: Sports teams are more and more getting into the development business. Just look at the San Francisco Giants' massive "Mission Rock" proposal in that city, which would include 1,500 apartments and 1.3 million square feet of commercial. And the 49ers have looked at development before: Last year, the team tried to lease the city's Youth Soccer Park next to Levi's Stadium, a move that generated a huge backlash. While the team said it planned to use it for parking, sources tell me the long-term play was real estate development. (It's worth noting that the team's training center next to Levi's, which could also be part of a future redevelopment, is cut off from the main thoroughfare, Tasman Drive, by the soccer park.)
But there are good reasons for Santa Clara to not smile on any potential Great America dreams. The city is currently working through the development plans for a massive city-owned golf course and open space park with the Related Companies just north of Levi's Stadium. The plan includes millions more square feet of office and retail for the site, which Related would lease from the city. Allowing a mega-project with Irvine Company would likely not be welcomed by Related as it would create more competition for a finite number of tenants.
And, a caveat: Irvine Company looks at a lot of deals, and only executes on some of them. The company, which is controlled by its billionaire owner, Donald Bren, is among the most aggressive buyers of real estate in Santa Clara and Silicon Valley, but not every possible transaction, well ... transacts.
In any event, it's probably only a matter of time before Great America and other sites around the stadium redevelop. Silicon Valley is growing, land values are rising, and pressure is increasing to use property to its highest and best use.
Nathan Donato-Weinstein covers commercial real estate and transportation for the Silicon Valley Business Journal.
http://www.bizjournals.com/sanjose/news ... laras.html
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