Cisco Systems Reaches Agreement With State, City on Major Land Purchase.SAN JOSE San Jose, city, United States San Jose (sănəzā`, săn hōzā`), city (1990 pop. 782,248), seat of Santa Clara co., W central Calif.; founded 1777, inc. 1850. , Calif.--(BUSINESS WIRE)--April 17, 1996--Cisco Systems Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :CSCO CSCO Cisco Systems Incorporated (stock symbol) CSCO Chief Supply Chain Officer ) the world leader in internetworking, today announced an agreement with the State of California and City of San Jose on the purchase of approximately 139 acres of land to accommodate the company's future growth. The agreement reflects a unique joint effort by the State and City to retain high-growth companies who can make a positive long-term economic impact in the region. It was announced at a joint appearance at Cisco's San Jose headquarters by California Gov. Pete Wilson For others named Pete Wilson, see . Peter Barton Wilson (born August 23, 1933) is an American Republican politician from California. Wilson served as the thirty-sixth Governor of California (1991–1999), the culmination of more than three decades in the public arena that , City of San Jose Mayor Susan Hammer Susan Hammer was the mayor of San Jose, California from 1991 to 1998. She was voted best local politician six times.[1] Hammer was born in Altadena, California on December 21, 1938. She attended the University of California at Berkeley. and Cisco Systems Chairman John Morgridge. "This agreement signals our confidence not only in our own future, but also in California and the City of San Jose as a place to do business," Morgridge said. "In the highly competitive environment for site location, we have been impressed by the willingness of the State and City to work out a mutually beneficial arrangement to meet our growth needs." This transaction is valued at approximately $90 million for the estimated 139-acre, undeveloped site. The State and the cities of San Jose and Milpitas will together provide approximately $20 million in infrastructure improvements, mostly road work. "This agreement demonstrates the strong commitment by the State to ensure solid, long-term job growth in California," Gov. Wilson said. "We want leading high-tech companies like Cisco to find a healthy business climate in California." "Cisco's decision to continue growing its headquarters in San Jose is further evidence that San Jose truly is the capital of Silicon Valley," Mayor Hammer stated. "Cisco has been an excellent corporate citizen, and we are very pleased to know they will be a major force in the San Jose's economy for years to come." The land is located in northeast San Jose, adjacent to Agnews State Hospital. No specific building plans were announced, pending completion of the sale and land-use planning approvals that are expected to take about a year. However, the company anticipates the site will accommodate the company's growth for five to 10 years. Cisco Systems will act as its own developer. In the last two years, Cisco's employment in the San Francisco Bay Area “Bay Area” redirects here. For other uses, see Bay Area (disambiguation). The San Francisco Bay Area, colloquially known as the Bay Area or The Bay has grown from less than 1,900 to more than 3,200. Assuming current business conditions, the company believes Bay Area employment could grow to nearly 10,000 by January 2000. Additional facts regarding the announcement include: -0- - Cisco Systems' potential addition near term of 3,700 jobs, scaling up to possibly 6,000 jobs, could induce an increase of up to 12,000 indirect jobs throughout the Santa Clara economy. - The economic multiplier effect Multiplier Effect The expansion of a country's money supply that results from banks being able to lend. The size of the multiplier effect depends on the percentage of deposits that banks are required to hold on reserves. of the near-term campus is expected to be over $2.5 billion in related sales output from area businesses. - The State of California's annual sales tax sales tax, levy on the sale of goods or services, generally calculated as a percentage of the selling price, and sometimes called a purchase tax. It is usually collected in the form of an extra charge by the retailer, who remits the tax to the government. revenue is expected to increase by $6.7 million. This will be generated from two sources -- Cisco Systems' direct purchase of taxable goods and the increase in retail sales of taxable goods induced by Cisco's expanding industrial output. - The State also expects to realize a significant one-time collection of sales tax of approximately $4 million from the initial purchase of the furniture, fixtures and equipment Furniture, fixtures and equipment (or FF&E) is an accounting term used in valuing, selling, or liquidating a company or a building. FF&E are movable furniture, fixtures or other equipment that have no permanent connection to the structure of a building or utilities. . - The City of San Jose is expected to increase its General Fund and property tax receipts by more than $2 million annually as a result of increases in sales, utility, property and transient taxes. -0- Cisco Systems was founded in 1984 by a small group of computer systems professionals from Stanford University. Initially operating out of a house in Atherton, the company shipped its first products in 1986 and later opened offices in Menlo Park. In 1994, the company moved to a 46-acre site on West Tasman Drive in San Jose. It currently occupies eight buildings with a combined 811,000 square feet. Four more buildings, totally 553,000 square feet, are nearing completion across Tasman Drive. Plans are being completed for construction of two more buildings at the corner of Tasman Drive and Rio Robles Robles is a common surname in the Spanish language meaning oaks, and may refer to:
Current worldwide employment for Cisco Systems is approximately 5,800. The company's revenues over the most recent four quarters (ending January 1996) were $2.66 billion. With a market capitalization Market Capitalization A measure of a public company's size. Market capitalization is the total dollar value of all outstanding shares. It's calculated by multiplying the number of shares times the current market price. This term is often referred to as market cap. of about $25 billion, Cisco is the third-largest company on the NASDAQ stock market Nasdaq stock market The first electronic stock market listing over 5000 companies. The Nasdaq stock market comprises two separate markets, namely the Nasdaq National Market, which trades large, active securities and the Nasdaq Smallcap Market that trades emerging growth companies. and ranks No. 40 on the BusinessWeek 1000 listing. Cisco Systems is the leading global supplier of internetworking solutions for corporate intranets and the global Internet. Cisco's products, including routers, LAN (Local Area Network) A communications network that serves users within a confined geographical area. The "clients" are the user's workstations typically running Windows, although Mac and Linux clients are also used. and ATM switches, dial-up access servers and network management software, are integrated by the Cisco IOS software to link geographically dispersed LANs, WANs and IBM (International Business Machines Corporation, Armonk, NY, www.ibm.com) The world's largest computer company. IBM's product lines include the S/390 mainframes (zSeries), AS/400 midrange business systems (iSeries), RS/6000 workstations and servers (pSeries), Intel-based servers (xSeries) networks. Company news and product/service information are available at World Wide Web site http://www.cisco.com. Cisco is headquartered in San Jose. -0- NOTE TO EDITORS: Cisco IOS is a trademark and Cisco, Cisco Systems and the Cisco logo are registered trademarks of Cisco Systems, All other trademarks, service marks, registered trademarks or registered service marks mentioned in this document are the property of their respective owners. CONTACT: Cisco Systems, San Jose Bob Michelet or Adam Stein, 408/526-4000 or State of California Kevin Eckery, 916/653-3111 or City of San Jose Kevin Purseglove or Sean Morley, 408/277-4237 |
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