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Google is cancelling part of its billion-dollar project to develop 20,000 Bay Area homes.
Lendlease, the company Google partnered with to make this happen, announced today that the companies “have mutually reached an agreement to end” the San Francisco Bay Project, which would have built homes in San Jose (Downtown West), Sunnyvale (Moffett Park), and Mountain View (Middlefield Park and North Bayshore).
“The decision to end these agreements followed a comprehensive review by Google of its real estate investments, and a determination by both organizations that the existing agreements are no longer mutually beneficial given current market conditions,” Lendlease says.
In a statement to Gizmodo, Google’s Senior Director of Development Alexa Arena said Google “is looking at a variety of options to move our development projects forward and deliver on our housing commitment.” She didn’t elaborate; Google had already put San Jose construction on hold earlier this year.
San Jose Mayor Matt Mahan tells Yahoo Finance that he’s confident Google will continue with the project. “This news doesn’t change Google’s commitment to San Jose or their timeline,” he said. “It simply gives them the flexibility needed to get the best possible developers on the project to build 4,000 new homes in our thriving downtown.”
In the original plan, Google intended to repurpose $750 million worth of the company’s land for use as residential housing. The goal was to create 15,000 homes for folks at varying income levels, including middle-class and low-income housing. There has been a dearth of such developments, especially in the Bay Area, which has caused a shortage of affordable homes.
Additionally, Google was going to earmark $250 million to encourage real estate developers to build 5,000 more affordable housing units in the area. All told, the projects would’ve added up to more than 15 million square feet of office, residential, retail, hospitality, and community development space—and a $15 billion price tag, according to Yahoo Finance.
Lendlease entered into a partnership with Google to build the project in 2019 with an estimated completion date of 2038.
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