The San Jose Sharks’ parent company and the City of San Jose have reached a proposed settlement over a lawsuit concerning Trammel Crow’s Diridon project.
In June, Sharks Sports & Entertainment filed a lawsuit challenging the city’s environmental approval of Diridon, which will be built on a parking lot near the SAP Center. The planned development will have 1 million square feet of office space, ground floor retail and 325 apartments.
Parking was at the heart of the Sharks concern over Diridon, which would take away around 800 spaces.
The proposed settlement still needs to be approved by the San Jose City Council, which will hear the item on Tuesday. In exchange for the Sharks dropping the lawsuit, Trammel Crow would give the city $4 million to purchase “certain properties” north of the SAP Center to be used for public parking, according to a memo from San Jose City Attorney Richard Doyle.
The memo states that if San Jose is able to purchase all the targeted properties, the city will lease some of the properties to the Sharks for $1 per month and construct a surface parking lot.