Is Los Gatos' Netflix Staying or Leaving?

San Jose Councilman Pierluigi Oliverio has openly invited Los Gatos-based Internet video streaming giant Netflix to move to San Jose, should the Town Council's latest approval of a business park is not conforming to its growing needs.

Oliverio, in a letter posted on the sanjoseinside blog, wrote: "As an alternative, the city of San Jose would be ready to act quickly on the entitlement of the Netflix corporate headquarters. Netflix would be welcomed with open arms, and appreciated for the value you bring to the community."

The Council on June 3 voted 4-1 in favor of a smaller version of the project at the intersection of Highway 85 and Winchester Boulevard. It reduced the Albright Way Business Park from the proposed 550,000 square feet to 485,000.

Also, two of its four buildings' heights were lowered from four stories, or 65 feet, to three stories, or 50 feet. One of the lowered buildings was the one closest to Highway 85 and the current Netflix campus at 100 Winchester Circle. The company has already signed a 10-year lease on it and had options on the rest of the project.

The project's originally proposed three-story parking garage will also be capped at 35 feet, with the option of going underground, the Council voted.

"San Jose can also offer additional perks to your workforce that are different from the standard offerings of an office park. For example, Santana Row, located just down the road, would offer a dynamic work environment that does not require your employees to get in car to enjoy all of the amenities just outside of their workplace," the letter continued.

Oliverio also cited another San Jose location next to Meridian Avenue by the Echelon Corporation for Netflix's consideration. On Monday evening, however, Oliverio was absent when Los Gatos Mayor Barbara Spector called his name after reading a speaker card that had been filled out on his behalf.

"San Jose would be proud to have Netflix call our city home. San Jose is a good long-term choice for Netflix, as the majority of your workforce is likely to live in San Jose, which can accommodate more residents than a small town. San Jose could also get creative when it comes to sharing tax revenues generated from your new campus. A portion of these funds could be directed to local philanthropic organizations in the name of Netflix," Oliverio wrote.

At a May 20 meeting to discuss the project, which faced a lawsuit over an inadequate environmental impact report conducted in its first stages, nearly 80 speakers addressed the Council in support or opposition of the project.

Those against the proposal, a large amount of residents who live in the neighboring Charter Oaks townhome complex, say the Los Gatos 2010 General Plan caps building heights at 35 feet. They also wore orange signs at the meeting that had the 350,000 square footage, cited in the latest environmental impact report, emblazoned on them.

Former Los Gatos mayor and current Councilman Joe Pirzynski, who voted in favor of the project, alluded Monday evening to San Jose's interest in recruiting Netflix as well as efforts from other towns to lure the popular company away.

Developer John R. Shenk said Thursday morning via email that he didn't have a comment on Oliverio's letter, but added: "We are focused on assessing the feasibility of the project the Council approved. The impacts are significant and are not known yet. We are working with our team to determine the best plans that respond to the Council direction."

He also said Netflix has shared that it's assessing what the approval means for the company.

Netflix spokesman Joris Evers declined comment. 

On Monday, Shenk said he was pleased the Council took the project as seriously as it did and analyzed all of its impacts and recognized the value of Netflix and having Class A space in town.

However, Shenk expressed disappointment that the Council  didn't accept the project as proposed. "I learned a lot and we're going to go away and study what they've approved," he said, adding that Netflix will have to give feedback about Building 1's lowered height.

The 20-plus-acre property where the Class A office space park will be built is owned by Los Gatos Business Park, LLC, which is owned by The Carlyle Group and Sand Hill Property Co.

ALSO ON LOS GATOS PATCH

• Scaled Back Albright Way Project OK'd Monday by Los Gatos Town Council
• Los Gatos' Albright Way Project Continued Until June 3
• Cherry Pickers to Illustrate Height of Future Los Gatos Netflix Campus