The city of San Jose paid the city of Santa Clara $5 million last week as a result of a 2018 settlement over a development project, according to Santa Clara officials.
In January 2018, the two cities reached a settlement over disputes related to the Santana West Development Project, which is located in San Jose near the Santa Clara city limit.
San Jose will also pay Santa Clara an additional $1.2 million, expected by the end of the week.
The settlement between the two cities included Santa Clara dismissing a challenge to the environmental impact report for the project and to the $6.2 million in payments to Santa Clara from San Jose. It also included San Jose paying a portion of Santa Clara's attorney fees, estimated at $145,000, and an agreement that the two cities will work together to address other related issues such as traffic.
The initial $5 million will be used to support affordable housing and transportation improvements in Santa Clara. The additional $1.2 million will be used for specific traffic and transportation improvements.