“The cost to rehabilitate the structure could be as much as $8 million and would prolong the useful life of the facility for only another five to eight years,” said Marvin Rose, Director of Public Works.   “This does not seem to be a cost-effective solution. We have known for some time that it would be necessary to make repairs to the structure, but the facility has always been considered serviceable.  We now think it’s necessary to look at options that may potentially result in either closing or demolishing the structure.”

According to Rose, the structure is not in any immediate danger of collapsing.  The issue is the continued structural deterioration that at this point would require immediate and expensive improvements to the parking structure.  Without making these improvements, the structure is approaching the time when it can no longer be used.  Rose recommends that parking use of the structure be curtailed within the next few months.

Robert Paternoster, Director of Community Development, has been in contact with the owners of the mall, the major department stores, and other financial stake-holders who would be directly affected by any action relating to the parking structure.  Approximately one-third of the structure is owned by the mall, with the remainder being owned by the City of Sunnyvale Redevelopment Agency.  Remedying the situation is complicated by the fact that the mall is presently in court-ordered receivership and its owners have filed for protection under Chapter 11 bankruptcy.  

“Our initial meeting with the stakeholders showed they had a strong preference for demolition of the structure rather than merely closing it,” said Paternoster.  “We want to continue to work with all the affected parties, including the larger downtown community, to address what our next steps should be.”  

Public Works and Community Development staff will continue analyzing options for how best to resolve the issues presented by the Parking Structure situation and will provide ongoing status reports to City Council.