Downtown San Jose Hard Hit By Sale
By Rodney Foo, San Jose Mercury News, Calif.
Mar. 14–The pending sale of Knight Ridder comes as a particular blow to San Jose’s still-rebuilding downtown, costing it one of its two corporate headquarters, a generous donor to causes such as the Tech Museum and the sign that is one of city center’s landmarks.
McClatchy — which reached an agreement to buy Knight Ridder and plans to turn around and immediately sell the Mercury News and 11 other papers — hopes to achieve $40 million in savings by eliminating corporate overhead. The Sacramento-based corporation is not expected to retain employees or facilities in San Jose.
Knight Ridder employs 105 people in the West San Fernando Street office tower that houses its corporate offices and bears the corporation’s name on enormous twin signs. An additional 130 employees work for Knight Ridder Digital, in a separate building on Market Street. In 1998, after Knight Ridder announced its intention to relocate its headquarters from Miami, the San Jose City Council revamped its sign ordinance to allow the 57,000-pound logos.
But Knight Ridder’s effect on downtown extended far beyond the building. The company and the Mercury News helped get the Tech Museum of Innovation off the ground by pledging $2 million in cash and in-kind services. Last year, Knight Ridder provided seed money for the Grand Prix race.
The city loses a "prestigious corporate headquarters" and Knight Ridder’s "unremitting charitable support," said Bob Kieve, a civic leader and owner of Empire Broadcasting.
But Mayor Ron Gonzales said he hoped other Silicon Valley companies would "step up to the plate" to fill the philanthropic void that will be left by Knight Ridder. The mayor said he senses more concern in the community about the status of the Mercury News than the departure of the corporation.
Janis Schneider, an executive board member for the San Jose Downtown Association said her group "feels like it’s losing a great supporter of our events."
"It’s going to be very difficult to replace that corporate entity in our downtown, that corporate member of our family if you will," Schneider said. "We’re very concerned — who will step into its place with the ice rink?"
The loss of Knight Ridder will have another practical impact — fewer customers to help support downtown businesses and restaurants.
Susan Hyland, general manager of the E & O Trading Co., a popular downtown bar and restaurant, said she’ll miss some of the familiar faces who work at Knight Ridder headquarters.
"Tony Ridder comes in all the time," she said.
"It’s sad it’s another company, another organization, that will no longer be here supporting the downtown businesses. It’s a sad thing but I also like to think that downtown is turning around," she said.
Contact Rodney Foo at rfoo@mercurynews.com or (408) 920-5258.
—–
Copyright (c) 2006, San Jose Mercury News, Calif.
Distributed by Knight Ridder/Tribune Business News.
For information on republishing this content, contact us at (800) 661-2511 (U.S.), (213) 237-4914 (worldwide), fax (213) 237-6515, or e-mail reprints@krtinfo.com.
NYSE:KRI, NYSE:MNI,