SAN JOSE — San Jose leaders today are expected to move ahead with the $47 million sale of the historic Hayes Mansion — a city-owned hotel conference center that’s been a financial drain on the city budget — by approving a parking agreement with its new buyer.
Asha Companies, based out of Washington, D.C., made a bid last year to buy the 6.32-acre property on Edenvale Avenue for $47 million — the best bid out of a handful of offers. City leaders said the sale will help retire $36 million of remaining debt on the Hayes Mansion since the city bought it in 1984.
But the sale is dependent on Asha Companies operating the city-owned Edenvale Garden Park Parking Facility — at no cost to San Jose — and allowing guests and employees to park there. The 15-year agreement would give the company non-exclusive rights to about 300 parking spaces.
San Jose has tried to rid itself of Hayes Mansion for more than a decade. The 1905 home that once was home to local newspaper publishers is costing the city $2 million to $6 million every year since 2003, mostly to pay off debt and operate the hotel.
Last year, San Jose mulled a “lucrative” offer from Global Bancorp Commodities and Investments. The terms of that deal were not disclosed, but city leaders have said past potential buyers were scared off by the mansion’s massive debt, which is nearly double the property’s value.
Councilman Sergio Jimenez, whose district includes Hayes Mansion, supports the sale but asked the hotel developer to “prioritize the retention and fair treatment of employees during this transition.”
“As we move forward with this process and the sale of the Hayes Mansion is finalized we hope
that Asha Companies remains committed to supporting current employees,” Jimenez wrote in a memo co-signed by Councilman Raul Peralez.
Also during Tuesday’s meeting, the City Council is expected to approve Mayor Sam Liccardo’s budget message which shows a $12 million general fund…