County could seek $30 million in damages from San Jose in new
complaint
Morgan Hill – A judge has handed Santa Clara County a victory in its long-running dispute with San Jose over developing the county fairgrounds.
The city sued the county in 2004 in an effort to stop a concert theater project. San Jose alleged that the county needed to abide by the city’s land-use policies because the fairgrounds are located within San Jose city limits.
Last Friday’s ruling, by San Mateo County Superior Court Judge Marie S. Weiner, clears the way for the county to move forward with the theater project the county hopes to use as a cash cow to overhaul the fairgrounds complex. The county is also considering moving the agricultural portion of the annual fair to a South County location.
“The ruling is a major victory for the county and clears the way to eliminate blight at the County Fairgrounds,” County Counsel Ann Ravel said. She added that an appeal would be “outrageous.”
“We hope they will not continue throwing away the taxpayers’ money by filing additional appeals,” she said.
San Jose City Attorney Rick Doyle could not be reached for comment.
The litigation has prevented the county from issuing bonds for the $85 million theater project, but Ravel said the county will move to finance the project even should the city appeal.
“I can sign a letter of no merit,” Ravel said, referring to a legal procedure to secure the bonds, “and I would confidently sign such a letter.”
The county has filed a cross-complaint against the city and may seek as much as $30 million in damages. Ravel said the two-year delay has caused a $17 million leap in the cost of the project. The county also contends that San Jose has breached a 2001 redevelopment agreement by failing to annex county pockets within its borders.
The suit was heard in San Mateo County to avoid a conflict of interest. The county was also sued by the San Jose Downtown Business Association. That case was dismissed last year.
