Verizon eyes major Sunnyvale expansion following Yahoo deal

SUNNYVALE — Verizon, despite recent job cuts in the South Bay, is eyeing an expansion in Sunnyvale that could include a big, new office building, according to a city planning document.

The document, for a Feb. 6 Sunnyvale City Council meeting about the city’s Moffett Park district, indicated that Verizon is considering development of properties next to buildings occupied by Yahoo. In June 2017, Verizon completed a $4.48 billion purchase of struggling web portal Yahoo.

“With Verizon’s acquisition of Yahoo, Verizon has an interest in building an approved project at the northeast corner of Java Drive and North Mathilda Avenue,” according to a city planning report.

The parcels involved in the project currently contain vacant lots, a parking lot and two existing Yahoo buildings, according to Santa Clara County property records and this news organization’s observation of the site.

“We’re always exploring new opportunities but have nothing to add at this time,” Eric Wilkens, a Verizon spokesman, said in an emailed response to an inquiry about the Sunnyvale development situation.

The property under consideration for development is bounded by Bordeaux Drive, West Java Drive and North Mathilda Avenue.

“The project includes a six-story 508,000-square-foot office building, 24,000-square-foot special use amenities building and one parking structure,” according to the city report, written by Andrew Miner, a Sunnyvale planning officer.

An office building of a half-million square feet could potentially contain 2,500 workers.

Sunnyvale city officials approved the development in 2011 as a result of a proposal from now-acquired Yahoo. However, the permit for that years-old approval is due to expire on Oct. 18 of this year. Verizon, as Yahoo’s successor to the property, may take actions to keep the development permit alive.

“To vest that permit ahead of that date, Verizon is intending to begin construction on at least one building,” Miner wrote in the city staff report.

Verizon’s interest in developing the Sunnyvale site comes amid the company’s move to chop 190 jobs in north San Jose.

The telecommunications company has issued an official notice to the state government that it instituted “permanent” layoffs at two sites it occupies on Trimble Road in San Jose.


The job classifications affected by the cutbacks were in software, hardware and networking.

“Verizon is restructuring and consolidating its operations to maximize the utilization of company facilities and resources,” Verizon stated in the Employment Development Department filing.

The employment cutbacks were expected to have been completed by Verizon sometime during the first week of February.

Verizon’s interest in northern Sunnyvale is within the same Moffett Park business district where Mountain View-based Google has outlined a vision for a series of mixed-use developments that could contain high-density offices, retail and residential projects. Sunnyvale officials recently voted to launch a wide-ranging study of the business park.

It wasn’t immediately clear which of the three structures that are part of the approved Sunnyvale proposal might be Verizon’s first development priority.

“The currently approved plans retain the existing buildings and add an office building, amenity building and parking structure,” Jennifer Garnett, a spokeswoman for the Sunnyvale city manager’s office, said in an emailed response.

It’s also possible that, years after the initial approval, Verizon might submit an altered development plan.

“We won’t know until they submit an application, which they may do in a few weeks,” Garnett said.

Source: mercurynews
Verizon eyes major Sunnyvale expansion following Yahoo deal