Silicon Valley Business Journal
From the article:
The state of California has turned down a $76 million offer for about 54 acres of land in north San Jose in hopes of luring a higher bidder.
The Department of General Services on Monday said it was seeking offers for the entire 81-acre site that makes up the former Agnews Developmental Center. The site is located at 3500 Zanker Road, in an area thick with buildings owned by Cisco Systems Inc.
By doing so, the state is essentially rejecting an earlier proposal from the Santa Clara Unified School District. The district and the city of San Jose had teamed up to offer $76 million for 54 acres of the state-owned land on which a new school and city park would have been built. The school district's contribution was pegged at $64 million, while the city had offered $12 million.
The school district said the school site was necessary to serve the thousands of new rooftops and their families that have emerged in the area over the last several years. Assemblymember Bob Wieckowski agreed, and introduced legislation that would have required the state and school district to reach a deal. That bill, AB 503, has since been amended instead simply to encourage both sides to strike an agreement, said Jeff Barbosa, Wieckowski's communications director.
Now the state has apparently decided to shop the site in its entirety more widely. DGS began accepting letters of interest on June 4, according to a news release, and interested buyers have until Oct. 3 to submit proposals for purchase and development.