Google 'committed' to massive multi-million dollar complex in San Jose as project is put on hold

Like most internet-based companies - Google is shedding jobs.

Lauren Martinez Image
Saturday, April 22, 2023
Google 'committed' to massive complex in downtown San Jose
A report that Google's multi-million dollar South Bay campus has been put on pause - caused quite the concern.

SAN JOSE, Calif. (KGO) -- A report that Google's multi-million dollar South Bay campus has been put on pause - caused quite the concern Friday afternoon.

San Jose Mayor Matt Mahan held a press conference to reassure the public nothing has changed since last month - when Google announced its assessing its timeline of Downtown West.

"Brought you all here to share that there's actually no news, which in this case is good news. So also just got off the phone with Google's team and while CNBC seems to be about a month behind, there's nothing new- Google remains fully committed to San Jose in the long term," Mahan said.

Google is slated to build a massive mixed-use project of office buildings and housing units on 80 acres around Diridon Station and the SAP center.

Like most internet-based companies - Google is shedding jobs.

"They speed up when there's growth, and when companies are contracting and pulling back a little bit after a period of over hiring, they slow down capital investment- that is the natural cycle here," Mahan said.

MORE: Google invests $3.5B in CA projects including plan to revamp Downtown San Jose

Google announced a multi-billion dollar investment to California today including a major project coming to San Jose.

A Google spokesperson released this statement:

"As we've stated, we're working to ensure our real estate investments match the future needs of our hybrid workforce, our business and our communities. While we're assessing how to best move forward with Downtown West, we're still committed to San José for the long term and believe in the importance of the development."

"This project would be faster or slower based on Google's hiring needs and that's really determined by the larger economy," Mahan said.

Google has a 30 year development agreement. The timeline of when the tech giant decides to build will be determined like any other private property owner.

MORE: SJ approves Google's massive downtown complex, largest single development deal in city history

Google's expansive Downtown West project in San Jose is one step closer to reality.

Already their presence has changed parts of downtown. The 100-year-old Kearney Pattern Works and Foundry closed to make way for the future village.

Google helped relocate the popular -Poor House Bistro - to Little Italy.

MORE: Video shows Poor House Bistro being moved to San Jose's Little Italy after Google buys land

A restaurant in downtown San Jose was transported to a new location in the city on Jan. 8 after Google bought the land it sat on.

In December, crews started demolishing the Sunlite Bakery Bread Depot to make room.

Alex Stettinski, the CEO of San Jose Downtown Association, is hopeful construction will not be delayed too long.

"It's a large space and a vacant space for a longer time is never a good thing. So maybe we can become creative all of us together to find a way to activate the space in a creative manner that makes sense for downtown," Stettinski said.

MORE: 100-year-old foundry closes to make way for Google transit village

In downtown San Jose, heavy industry makes way for high tech.

Like the mayor, he's confident Google will stay committed.

"This is the first time that I've seen this in my life that a group and troupe of soldiers that is really ready to make a difference, and we are all aligned. We all want to turn this around and it takes a village," Stettinski said.