| Q1: |
What are you announcing? |
| A1: |
Hitachi GST submitted an application for a General Plan Amendment (GPA) with the City of San Jose on February 19, 2004. The application proposes that certain portions of the property at 5600 Cottle Road be re-designated from industrial use only to a combination of industrial, commercial and residential uses. On April 8, 2004, Hitachi GST submitted an application for a Planned Development Rezoning. This application shows specific proposed parcels zoned for industrial, commercial and residential use as well as a summary of the proposed number of acres and building square footage intended for each use. |
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| Q2: |
Why is Hitachi GST submitting these applications? |
| A2: |
The nature and scope of activities performed by Hitachi at its headquarters and manufacturing site on Cottle Road continue to evolve in response to the business dynamics of the IT storage industry. Hitachi intends to develop a plan for the best use of the property for the City of San Jose and Hitachi and to maximize the company's business efficiency.
In its current configuration, the site cannot effectively or efficiently support all of Hitachi's business needs going forward. Some of the Cottle Road site facilities are outdated and very expensive to operate. Some are nearly 50 years old and cannot easily be modernized without significant capital investment. With its current building configuration, the site will not support modern industrial or office/R&D uses that are important to the City's employment base. |
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| Q3: |
Why should the City approve the plan? |
| A3: |
Because of its strategic location, the site can support and facilitate a true mixed use, transit-oriented urban village -- a self-sustaining neighborhood with a strong employment base, retail opportunities and a range of housing types including higher densities adjacent to transit stops. Implementation of the proposed GPA would better support the City's Smart Growth, economic development, fiscal, transportation and housing strategies and objectives with a mix of uses, especially employment, retail and housing near transit. The site is directly adjacent to two mass transit nodes (CalTrain and light rail) and major freeways (85 and 101).
The site can also support community-serving commercial uses the City has long desired in this sub-region to produce revenue for the General Fund. In addition, the plan could accommodate important community amenities, including open space, and provide benefit to Hitachi, the City and neighborhoods. |
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| Q4: |
What is the employee population in San Jose and how will they be affected by this move? Are you expecting to eliminate any jobs as a result of this effort? |
| A4: |
Approximately 2,800 Hitachi GST employees work at the San Jose Cottle Road site. No change in job status is planned as a result of the development plans in the GPA application or the possible relocation of any Hitachi GST business operations in the area, on or off the Cottle Road site. |
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| Q5: |
Will any jobs be transferred out of state or country as a result of this action? |
| A5: |
No change in job status is planned as a result of the development plans in the GPA application or possible relocation of any Hitachi GST business operations on site or off site in the area. |
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| Q6: |
How many acres are in the San Jose Cottle Road site and what percentage will be retained for ongoing business operations? |
| A6: |
The Hitachi site currently occupies about 332 acres. Hitachi intends to relocate future operations to a core campus on approximately half the site, allowing current operations to continue and providing the capacity for more intense industrial/office/R&D use and expansion in the future. A new master plan for the site will allow it to be planned for highest and best uses, both for Hitachi's long range business requirements and to meet many of the City's important community development objectives.
The outer portion of the property has the potential for community serving commercial development as well as a range of housing opportunities. Redefinition of the core campus and development of the outer portion properties with complementary uses will put Hitachi in a better position to implement its long term business objectives and achieve its goal of remaining in the City. |
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| Q7: |
What is being done to preserve the orchards at the site? |
| A7: |
A full tree survey was conducted as part of the Environmental Impact Report (EIR) analysis. This master plan is for an urban, transit village. While there will be tree loss, the plan provides ample green areas that include the preservation and relocation of existing trees, and the planting of new trees. |
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| Q8: |
What impact do you expect this plan will have on the surrounding community (e.g., traffic)? |
| A8: |
All of these issues were the subject of the Environmental Impact Report (EIR) for the project. The EIR evaluated the environment, traffic and transportation issues, along with utilities, noise, trees, historical factors, campus entrances, and views. The development will have impacts. As part of the mitigation of those impacts, Hitachi GST is making significant contributions to the area such as a community park with ball fields, historic buildings for community space as well as major traffic improvements. |
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| Q9: |
Do you have any longer-term plans to exit Silicon Valley altogether? |
| A9: |
No. Hitachi has a significant investment in our manufacturing facilities here and we plan to continue utilizing this site to meet production volumes. In addition, our company headquarters is here and our goal is to stay in San Jose. To do so the company needs efficient and effective facilities in the area, on or off the current site, that support our near-term and long-range business needs for corporate headquarters, research facilities, as well as design, development and manufacturing of IT storage products. The nature and scope of the company's business activities continue to evolve in response to the business dynamics of the IT storage industry. |
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| Q10: |
When would the development begin on the site? |
| A10: |
The City of San Jose approved the project in June, 2005. We have now started the development permitting process to allow for site preparation, followed by demolition and construction. This will likely not occur until sometime later in 2006. Redevelopment of the site will take several years. |
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| Q11: |
How long have you been working with the City of San Jose on this project? Is the San Jose Redevelopment Agency involved? |
| A11: |
We informed the appropriate City officials of our plans in 2004. Yes, the RDA will be involved as the property is within a RDA project area. |
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| Q12: |
What actions have been taken to inform local community residents? |
| A12: |
Hitachi's employees live and work right here and we are quite committed to being a great neighbor. Hitachi has contacted surrounding neighborhood associations and has meet with several of them or is in the process of meeting with them. Additionally, Hitachi has held two area -wide community meeting in June, 2004 and February, 2005. The City of San Jose has sent informational post card on the project to nearby neighbors, held an EIR scoping meeting in August, 2004 and two General Plan community meetings in April, 2005. Hitachi looks forward to continuing our collaborative planning process with the City and neighbors. |
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| Q13: |
Does this plan have anything to do with the class-action litigation that has been brought against IBM alleging chemical exposure at the San Jose site? |
| A13: |
No. This plan has nothing to do with the lawsuit. |
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| Q14: |
Why are publicizing this now if you have such a long timeline? |
| A14: |
Once the GPA was submitted on February 19, 2004, the project became public. When the Planned Development Zoning application was filed on April 8th, details regarding parcel rezoning became public. We want our employees, our community and local officials to be informed and fully aware of our plans as far in advance as possible. |
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| Q15: |
What products does Hitachi GST currently manufacture at the Cottle Road site? |
| A15: |
Hitachi GST manufactures Hard Disk Drive components including wafers, disks and heads at the Cottle Road site. |
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| Q16: |
Can you quantify the expected cost savings that will result from the sale of this real estate? |
| A16: |
The financial analysis is ongoing. We cannot quantify the final financial impact at this time. |
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| Q17: |
What type of development (residential, commercial) are you expecting? |
| Q17: |
The overall development will include a combination of the industrial core site along with new housing, commercial, retail and other industrial usage on the outer parcels, consistent with modern mixed-use planning concepts embraced by the City of San Jose and most modern land-use and urban designers. |
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| Q18: |
What is the status of the property under contract to Lowe's Home Improvement? |
| A18: |
Any questions regarding that property should be directed to IBM. |
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| Q19: |
What is the nature of the business at the Cottle Road Jose site? |
| A19: |
Hitachi GST's headquarters are located on the site as well as disk, wafer and media manufacturing facilities. |
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| Q20: |
How does this plan affect the Hitachi SJ Research Center (ARC)? |
| A20: |
Location of the Hitachi research function is being evaluated along with the rest of current operations. |
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| Q21: |
Has an Environmental Impact Report been initiated? |
| A21: |
As part of the approval process, a thorough, exhaustive and complete Environmental Impact Report was reviewed and certified by the City on June 21, 2005. |
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| Q22: |
What is the main significance of the Memorandum of Understanding between the city and Hitachi GST? |
| A22: |
While the MOU is not binding, the intent is to demonstrate that the city is supportive of Hitachi's intent to maintain its current operations and job base in San Jose, as well as its plans to create a mixed use, transit oriented development for the Cottle Road property. The MOU provides Hitachi GST with a reasonable degree of certainty as the company begins to make major expenditures to implement a new workplace plan. Final approval by the city will be dependent on successful completion of all the elements of the standard General Plan Amendment approval process. The MOU is an excellent demonstration of cooperation between the city and business focused on providing mutual benefit to the community and to the company. |
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| Q23: |
Why is Hitachi GST moving its research and headquarters functions to the Yerba Buena facility? |
| A23: |
Relocation of these two important functions is part of creating a modern and efficient workplace structure for the company. The research function is currently occupying leased space at 650 Harry Road, San Jose. The headquarters function is currently occupying space in a building at the 5600 Cottle Road site that is located on the parcels that will be developed for other uses, assuming approval of the Hitachi application for rezoning. |
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| Q24: |
What business operations will continue at the Cottle Road site? |
| A24: |
Plans for repositioning of specific functions are not final. |
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| Q25: |
How many employees will move and how many will stay? |
| A25: |
Approximately 650 research and headquarters employees will relocate to the Yerba Buena facility and approximately 2200 will continue to work at the Cottle Road site. |
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| Q26: |
When will moves take place? |
| A26: |
Relocation of employees to the Yerba Buena facility is targeted to take place during 2006. Most of the affected operations will be completed by the end of 2006. Assuming final approval of the Hitachi application for rezoning in 2005, site preparation of outer parcels can begin at that time, followed by construction of the new development. Full redevelopment of the site will take several years. |
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| Q27: |
Exactly where is the Yerba Buena facility? |
| A27: |
Take the Yerba Buena exit off Hwy 101 heading east. The site is about 4.5 miles off the highway, just past Evergreen College near the foothills. |
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