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State Law Stalls Potential Relocation for San Jose Flea Market Vendors

San Jose’s Berryessa Flea Market vendors have long been searching for a new home, and they believe a city-owned landfill site is their best bet. However, a state law is blocking the move, creating uncertainty for hundreds of small businesses that rely on the market for their livelihood.

The 90-acre Singleton site, a former landfill, is the top choice among eight potential locations identified by city consultants. Its proximity to major freeways and residential neighborhoods makes it an ideal spot for a thriving market. But before vendors can relocate, San Jose must obtain an exemption from the California Surplus Land Act, a law that prioritizes city-owned land for affordable housing.

A Bureaucratic Roadblock

San Jose officials are actively seeking an exemption from the California Housing and Community Development Department, arguing that keeping the flea market operational offers significant economic benefits. However, city economic development & cultural affairs director Nanci Klein revealed this week that initial discussions suggest the state is not inclined to grant an exemption.

“Conversations with staff are ongoing,” Klein said during a Community & Economic Development Committee meeting on Monday.

If approved, the site would still require three to five years of environmental remediation due to contamination from its past as a landfill. The estimated cleanup cost? A staggering $4 million per acre, according to city officials.

Time Running Out for Vendors

Councilmember Peter Ortiz (District 5) acknowledged that even if the site were approved, the flea market vendors would still face years of waiting before the land could be used.

“So it could leave our vendors high and dry for a while during the time in which we’re remediating that site or exploring other solutions,” Ortiz said.

For the 450 independent businesses that rely on the flea market, delays could be devastating. While vendors were initially set to vacate the 1590 Berryessa Road location due to redevelopment plans, an agreement with the city and District 4 Councilmember David Cohen has allowed them to stay until at least July 2026.

But with that deadline approaching, vendors are growing impatient. Roberto Gonzalez, president of the Berryessa Flea Market Vendors Association, is urging the city to work with the state to secure the new site.

“We’re looking for commitment from the city on the relocation process and clarity on the timeline—we need to drive this thing home,” Gonzalez said.

A Costly Mistake?

Councilmember George Casey (District 10) expressed frustration at the slow pace of the process, blaming previous city leadership for wasting time and money on studies that only confirmed what was already known—the flea market is an economic powerhouse.

According to city reports, the flea market draws between 836,000 to 1.7 million visitors per year, generating an annual economic impact of $20 million to $40 million and providing vendors with a total yearly income of about $5.7 million.

“San Jose without a big, thriving flea market would be a great loss,” Casey said. “It’s incumbent on us to do right here.”

Limited Financial Support

So far, just $1 million of a $7.5 million vendor transition fund has been distributed. Another $2 million is expected to be allocated by July. However, Vice Mayor Pam Foley, who chairs the committee, cautioned that vendors shouldn’t expect additional city funding, given upcoming budget discussions for 2025-26.

“I would caution everyone to look at the finances of Singleton,” Foley said. “Knowing what budgetary situation we’re in, we likely will not make a budgetary decision (on this) when it comes to council.”

What’s Next?

With time running out and limited alternatives, vendors are hoping city officials move quickly to secure their future. However, with the state pushing for affordable housing on the Singleton site and cleanup costs presenting a major hurdle, a clear solution remains elusive.

Klein summed up the challenge, stating:

“(The state) told us, verbally, that we would have to offer the site for affordable housing. Which for a number of reasons, we don’t agree it makes sense… It is a challenging set of work to undertake.”

For now, vendors remain in limbo—waiting for the city and state to act before their time at Berryessa runs out.

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