Growing Pains

The stunting of Silicon Valley's growth

Brian J. Taylor from the February 1998 issue

(Page 2 of 2)

But before consummating the deal, Sun had to get rezoning approval from the city, a process that took four consecutive weeks of hearings and over 20 hours of public comment before a final vote was taken. While critics such as Holmes decried the plan on preservationist or environmentalist grounds, many residents of the area near Agnews welcomed the Sun project. They hoped it would bring the neighborhood amenities such as a grocery store, a gas station, an elementary school, and a library.

At the city council meeting, Councilwoman Patricia Mahan criticized the Sun deal for almost an hour, proposing several amendments to help "mitigate" the project's cultural, environmental, and historic impact. A few of them passed, including one requiring Sun to pay somebody $20,000 to write a book on the history of Agnews. It was past 2:30 a.m. when the council finally approved the Sun project by a 4-to-3 vote.

The saga still isn't over. The Agnews Preservation Coalition has filed a lawsuit contesting Sun's environmental impact report, and a signature drive is under way for a city-wide referendum to overturn the council's vote.

The Sun expansion is not the only local project that has encountered resistance from opponents of growth. Residents of Oakland have filed a federal lawsuit to halt port expansion. Plans to expand San Jose International Airport provoked hours of angry public testimony at planning commission meetings, as nearby residents complained about a likely increase in noise levels and what they believe will be a deteriorating quality of life. In November, Palo Alto voters approved a ballot measure to widen Sand Hill Road, a major thoroughfare famous for its concentration of venture capitalists. But the neighboring city of Menlo Park has filed suit to challenge the project's environmental impact report, claiming the likely effects of expansion on traffic and the environment were understated.

The increasingly hostile environment seems to be having an impact on expansion decisions by local businesses. Sun, while still a dominant presence, recently decided to open two new campuses far away: one in Broomfield, Colorado, the other in Burlington, Massachusetts. Far from protesting, these cities welcomed Sun with millions of dollars in tax credits. Sun says development costs were a factor in its decision to expand outside the Valley; land near the company's proposed Santa Clara campus can cost as much as $1 million an acre.

Many other Valley heavyweights, including Hewlett-Packard, Intel, 3Com, and National Semiconductor, are scattering plants across the country and around the world, from Malaysia to Ireland. Intel reportedly received $100 million in tax credits to open a plant in Rio Rancho, New Mexico. "Many companies are choosing not to locate here," says Leslee Coleman, vice president of the Santa Clara County Manufacturers Group, which represents 120 of the largest companies in the area. While she says there is still room for development, Coleman concedes the cost of land and the overcrowded roads pose challenges. Acknowledging the political climate, she says her group supports greenlines and affirms the need to "grow smart."

Jim Tucker, director of economic development at the San Jose Metropolitan Chamber of Commerce, says he's not worried: "This is the Silicon Valley--if you want to be in the mainstream, you come here." But Feinberg, head of the builders association, offers a bleak prognosis:
"Demand is increasing, the opposition is getting stronger, and cities are getting greedier." He warns that cities "better find a way to house the workers if they want economic progress to continue." And while the Sierra Club tries desperately to keep cars off the road, Santa Clara Chamber of Commerce President Betty Hangs notes, "If there was no traffic, there would be no jobs."