SOURCE: City of San Jose, California

City of San Jose, California

September 03, 2009 13:10 ET

San Jose Major League Ballpark to Create $130 Million a Year in Economic Benefits and a Thousand New Jobs

San Jose and Region to Benefit From Downtown Professional Baseball Stadium

SAN JOSE, CA--(Marketwire - September 3, 2009) - A new Major League Baseball ballpark in Downtown San Jose has the potential to generate approximately 1,000 new jobs and $130 million in ongoing economic benefit with a positive impact on the City of San Jose's General Fund.

According to a new report released today, "Economic Impact Analysis: Proposed Major League Ballpark," San Jose would see strong financial benefits from the construction and operation of a new professional baseball ballpark associated with the Oakland A's.

"San Jose is ready to play ball," said Mayor Chuck Reed. "It's great news that this privately built and operated major league ballpark will create nearly 1,000 jobs and generate over $5 million dollars a year of revenue for local governments. San Jose would receive over $3 million each year in new tax revenue. In addition, Santa Clara County, schools and other local agencies would receive over $2 million a year in new revenue. That's good news for local governments in these tough budget times," said Reed. "As the largest city in Northern California and one of the most dynamic markets in the U.S., the time is right for professional baseball to turn its attention to San Jose."

Developed by Conventions Sports & Leisure International (CSL) -- a leading consultant in the convention, sport, entertainment and visitor industries -- and presented to the San Jose Redevelopment Agency, the report studied the economic impacts of a new MLB facility that would be built to house the A's and located in the Diridon Station neighborhood of Downtown San Jose.

With a fully operational facility in 2014, the ballpark would produce $130 million in annual economic impact and approximately 1,000 new jobs paying wages of more than $62 million, according to the report. Over a 30-year period, the cumulative economic impact would total $2.9 billion and personal wages paid exceeding $1.3 billion.

Local hotels, restaurants, stores, and nightspots would benefit as well, with the average ballpark attendee expected to spend $47 at businesses outside of the MLB facility.

In addition to the economic impacts to the local economy, the report found that the ballpark would generate $1.5 million per year new tax revenues for the City's General Fund, more than $1.5 million for the San Jose Redevelopment Agency, and more than $2 million for other local agencies including Santa Clara County and the San Jose Unified School District.

The report delved into the fiscal impacts to the City of San Jose, both in terms of taxes collected and in expenses to the City's General Fund. The most significant costs resulting from ballpark operations would be event day activities (primarily traffic management and security), facility operations, and ongoing maintenance. The San Jose City Council has stipulated that both event day and operations costs are to be fully borne by Major League Baseball team. The report determined that the remaining day-to-day costs for public services during non-event times would be relatively minimal at around $50,000 a year.

"A new ballpark would be a crown jewel for Downtown San Jose, and providing much-needed boost to nearby businesses, and with the new high-speed rail and BART stations planned, will have phenomenal access to the whole Bay Area," said Harry Mavrogenes, executive director, San Jose Redevelopment Agency. "Creation of a ballpark will transform a blighted area and encourage further investment in this critical area of Downtown."

Construction of the MLB ballpark is proposed for a 14-acre site located in the Burbank/Del Monte Strong Neighborhoods Initiative (SNI) Redevelopment Project Area. The site is bounded by San Fernando Street on the north, Park Avenue on the south, Autumn Street on the east and Caltrain railroad tracks on the west. The venue would house 32,000 seats, including 80 corporate-sponsored suites, and play host to approximately 81 MLB games per year as other non-MLB events. Total annual attendance is estimated to be 2.1 million.

According to Paul Krutko, San Jose's chief development officer, results from the "Economic Impact Analysis" demonstrate the importance of a city's sports and entertainment offerings.

"With more than a million residents and nearly 7,000 of the world's most important technology companies, San Jose now is hands down the economic powerhouse of the Bay Area. Major league teams, leagues, and sporting events are looking to San Jose to reach the best audience in the nation, a diverse, innovative and highly-educated community with one of the top median incomes in the U.S.," Krutko said. "Sports organizations also want to take advantage of the economic opportunity to build, grow and diversify their fan base among residents who embrace an active, healthy energetic lifestyle."

The report will be discussed by the San Jose City Council at its September 15, 2009 meeting.

"This report quantifies that it makes fiscal and economic sense to bring baseball to Downtown San Jose," Mayor Reed said. "Our residents will benefit, our Downtown businesses will benefit, and surrounding communities will benefit. I look forward to the day when the ballpark is completed and families from throughout our community can enjoy a warm afternoon or evening at the Downtown ballpark."


From its founding in 1777 as California's first city, San Jose has been a leader driven by its spirit of innovation. Today, San Jose stands as the largest city in Northern California, with more than a million residents, and the Capital of Silicon Valley -- the world's leading center of innovation. The city, the 10th largest in the U.S., is committed to remaining a top-ranked place to do business, work, live, play and learn. For more information, visit,


The Agency is dedicated to improving the quality of life for all who live and work in San Jose. Governed by the City Council, acting as the Redevelopment Agency Board, the Agency facilitates and oversees comprehensive programs for development to revitalize and strengthen quality of life and competitiveness for San Jose's downtown, neighborhoods and industrial areas. For more information, visit


The City of San Jose's Office of Economic Development (OED) is committed to a vital, competitive San Jose economy that increases prosperity for people and companies and enhances City revenues. The OED guides the City's economic strategy, provides assistance for business success, helps connect employers with trained workers, and provides art, sporting and cultural resources to our community. For more information, please visit,


Conventions, Sports & Leisure International (CSL) is a leading advisory and planning firm specializing in providing consulting services to the convention, sport, entertainment and visitor industries. CSL was established for the specific purpose of providing a source of focused research and expertise in these industries. Services include new/expanded event facility feasibility studies, organizational reviews/performance enhancement studies, destination masterplanning, industry benchmarking, negotiation assistance and related services. For more information, please visit,

Contact Information

  • Contact
    Michelle McGurk
    (408) 535-4840
    Office of San Jose Mayor Chuck Reed
    Email Contact

    Steven Brewster
    (415) 577-8851 mobile
    San Jose Office of Economic Development
    Email Contact

    Helen Duong
    (408) 795-1807
    San Jose Redevelopment Agency
    Email Contact