The property acquisition would save $112 million over 30 years and secure long-term ownership of a major healthcare facility
January 13, 2026
SANTA CLARA COUNTY, Calif. – On Tuesday, January 13, the Board of Supervisors approved County Administration’s recommendation to purchase the future site of Valley Health Center San José at 1410 S. Bascom Avenue, to acquire the new clinic site rather than leasing it. The acquisition of the property would result in more than $112 million in savings over 30 years and allow the County to own a major health care facility designed to serve tens of thousands of residents a year. Funding for the acquisition of 1410 S. Bascom Avenue will come entirely from the issuance of lease revenue bonds, also approved by the Board on Tuesday.
“This decision today ensures sustainability and long-term community health,” said Board President Otto Lee. “Given the financial challenges ahead, acting now to reduce monthly costs and secure a critical healthcare asset is both prudent and forward-thinking. This is a true win-win for our County.”
The recommendation by County Administration to purchase the property replaces a long-term lease the Board previously approved in 2022 for the 230,000-square-foot medical office building. Under the lease, the County would have paid an average of $25.5 million in annual lease costs over a 30-year period. By purchasing the facility using lease revenue bonds, the County will be able to lower its yearly payments to $20 million while building ownership and equity in a critical public asset. In addition, through negotiations with the developer, the County secured a $13.8 million reduction in the purchase price by exercising an early option to buy prior to the lease commencement date. The total savings over the 30-year period is $112 million.
The purchase directly benefits the County’s financial position during a period of extraordinary fiscal pressure. The County faces a projected $1 billion annual loss following the passage of H.R. 1, creating a significant ongoing deficit for the County’s hospital and healthcare system even after voters approved Measure A, which will generate $330 million annually.
“As stewards of taxpayer dollars, it is critical that we continue to optimize County operations to deliver the greatest value at the most efficient cost,” said County of Santa Clara Executive James R. Williams. “County Administration’s recommendation to purchase this site is part of our ongoing efforts to streamline and restructure operations in light of the fiscal crisis we face due to unprecedented federal budget cuts. Through these recommendations, the Board is taking action to strengthen the County’s financial position while ensuring the delivery of critical healthcare services to our community in a state-of-the-art space. We will continue to pursue every action we can to responsibly reduce costs, increase revenues, and deliver effective and efficient services during this time of unprecedented withdrawal of federal funding.”
Valley Health Center San José is a newly constructed, 10-story medical office building with 600 structured parking spaces and modern clinical floors designed to consolidate services currently spread across the Santa Clara Valley Medical Center campus. Construction of the shell and core of the site was completed in October 2025, and tenant improvements are expected to be finished soon, allowing the County to bring services online in early 2026. The County entered into the lease agreement for the construction and use of the site in 2022 after a facility needs assessment showed significant costs for rehabilitation of outdated clinical spaces around the Santa Clara Valley Medical Center campus.
ABOUT THE COUNTY OF SANTA CLARA, CALIFORNIA
The County of Santa Clara government serves a diverse, multicultural population of 1.9 million residents in Santa Clara County, Calif., making it more populous than 14 states in the United States. The County provides essential services to its residents, including public health protection, environmental stewardship, medical services through the County of Santa Clara Health System, child and adult protection services, homelessness prevention and solutions, roads, park services, libraries, emergency response to disasters, protection of minority communities and those under threat, access to a fair criminal justice system, and many other public benefits.
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Media Contacts: María Leticia Gómez/Peter Gallotta, Office of Communications and Public Affairs, (408) 299-5119, sccpublicaffairs@ceo.sccgov.org
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