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Netflix officially signs on to new Los Gatos campus

By Nathan Donato-Weinstein
 –  Real Estate Reporter, Silicon Valley Business Journal

After years of discussion, Netflix has officially signed on to a new home in Los Gatos.

The streaming video company signed a lease to occupy the first phase of developer LG Business Park LLC's proposed campus project, pending approval of a revised application, developer John R. Shenk said in an email.

The 550,000-square-foot Class A development application could go before the Town Council in early 2013, Shenk said.

Netflix has long been identified as the likely tenant of the project at 90-160 Albright Way and 14600 Winchester Blvd. But the new lease could give the proposal greater weight during the approval process.

"We're happy to have signed the lease that gives us the opportunity to expand our headquarters in Los Gatos," said Netflix spokesman Joris Evers. "Albright Way is a natural site for Netflix because it's adjacent to our current site, and allows us to stay in the community we've been a part of for over 10 years."

The original project was redesigned after being hit with a CEQA lawsuit. The revised application does not include a residential component and is limited to being of similar height as the existing Netflix headquarters, Shenk said.

Shenk said the project would keep Netflix in Los Gatos. He said the town has projected the campus could produce more than $2 million in new annual property tax revenue, which he said would flow to the city and schools.

"The project is consistent with the Town of Los Gatos' General Plan, which specifically calls for this type of job-creating use in the Hwy 85/Vasona light-rail corridor," he wrote in an email. "Providing an increase in commercial uses in Los Gatos will ensure economic vitality for this part of Silicon Valley."

Netflix (NASDAQ:NFLX) is a critical piece of the town's economic makeup. According to previous Business Journal coverage, Netflix's sales tax makes up roughly 10 percent of the town's General Fund revenue, or about $3.4 million. There had been some concern that Netflix would look elsewhere to expand should the project not move forward.

Netflix is currently at 100 Winchester Circle, near the proposed development site.

Note: This story has been updated to reflect the accurate square footage of the revised project.