Santa Clara County leaders skeptical of Earthquakes' private soccer complex deal

The Santa Clara County Board of Supervisors has stopped short of letting the San Jose Earthquakes build a private soccer complex at the county fairgrounds under the current proposed terms.

Some county leaders on Tuesday slammed the Earthquakes' proposed terms as a "laughable" sweetheart deal that low-balled the public on community benefits -- and expressed little confidence in the Earthquakes as a "good faith" partner for the county. County leaders and team executives are negotiating a deal to develop four, state-of-the-art artificial turf public soccer fields and a private training center -- including four additional fields for the Earthquakes' professional team and youth academy.

Supervisors publicly weighed the proposed terms for a 25-year lease agreement with the Earthquakes -- giving the team 26 acres of fairgrounds property to develop along Umbarger Road. While the board voted unanimously to continue negotiations with the team next month, Supervisor Joe Simitian said the terms as presented undervalue the fairgrounds property "in excess of $100 million."

"I think the public benefit is minimal -- laughably so, if it weren't so serious," Simitian said. "I'm not convinced the Earthquakes Soccer LLC would be a good faith partner with whom to work -- it pains me to say that but I think that recent history suggests that's the case."

Simitian referred to Earthquakes owner John Fisher. From the dais, he read aloud blistering media reports and newspaper columns referring to Fisher's ownership of the Oakland Athletics baseball team as "one of the worst in sports." Fisher faced Bay Area-wide backlash for his decision to move the team to Las Vegas, where Nevada officials have already approved a $380 million taxpayer subsidy to help pay for the sports team's new stadium.

"All of that is what I have been reading for the better part of a year," Simitian said. "So when I look at a $100 million giveaway, a negligent -- really paltry -- public benefit, and a track record of leaving fans, I can't support it."

Under the current proposal, the Earthquakes would be responsible for $12 million of the $18 million design and construction of the public fields and pay an initial rent of $240,000 per year, with yearly increases of 2.55%, over a 25-year ground lease. San Jose -- whose city council unanimously approved the terms on Tuesday -- would contribute $6 million toward the construction. The lease would have three, 10-year extension options totaling 55 years. The Earthquakes would keep all revenue over the 25-year term, but after that would be required to pay to the county 50% of any net income earned from the management of the public fields.

The team would also provide just 250 hours of free community use of the public fields every year, amounting to less than one hour per day.

For years, county supervisors have courted various athletic interests -- including track and field and Major League Cricket facilities -- to envision a new use for the 160-acre fairgrounds property. That vision has clashed, however, with that of affordable housing and homeless advocates who pushed for a plan in 2021 to open the fairgrounds for RV safe parking sites and prefabricated homes.

Supervisor Susan Ellenberg balanced the need to address the fairness of the deal with the need to convert the fairgrounds from an underutilized space to a community resource.

"I welcome opportunities to change that narrative," Ellenberg said.

Proponents of the Earthquakes project called it a solution to the dearth of adequate recreational facilities and public fields in Santa Clara County, where in some neighborhoods, families have to walk miles to the nearest park or safe field to play on.

Steven Sosa, an Earthquakes coach for the last nine seasons, said providing more fields for the youth is "essential." "It provides kids with a safe, accessible space to stay active, build skills and foster friendships," Sosa said at the meeting. "Physical activity promotes mental health, focus and teaches values like teamwork and responsibility. I have an 18-year-old who has a hard time finding fields to train at and now I have a 1-year-old. I'm tired, and we need fields for them."

Other public concerns centered around the team's proposal to use artificial turf. A joint letter by a coalition of environmental and community groups urged supervisors to prohibit artificial turf in the project. Supervisors agreed that was a concern before the vote.

"Even if this is a nonbinding agreement, it doesn't sit well with me," Supervisor Sylvia Arenas said. "We have not included our community in this conversation. This is not our money -- this is the public's money."

But supervisors weren't ready to shut down the deal altogether.

Simitian agreed there was a "kernel" of a good idea in the project -- on the condition the team came back with a "realistic proposal" that "puts serious money on the table."

Supervisor Cindy Chavez voiced concern that the discussion might move the county "dramatically further away" from the project.

"To me, this is the best opportunity we have had the entire time on the board, to do something at the fairgrounds," Chavez said at the meeting.

This story was originally published in San Jose Spotlight and written by Brandon Pho.

Contact Brandon Pho at brandon@sanjosespotlight.com or @brandonphooo on X, formerly known as Twitter.