Two tenants from the Homestead Shopping Center — Tous les Jours bakery and Fuheng Herbs — have filed separate lawsuits against former property owner David Bider and Cypress Investments, claiming they were misled and pressured into leaving prior to the site’s sale to residential developer PulteGroup. The property, located at 3521 and 3591 Homestead Road, is slated for conversion into a 147-unit townhome development, including approximately 20 affordable units and limited commercial space.
The legal disputes come as most businesses at the center have already closed or are preparing to vacate. Remaining tenants, including Super Kyo-Po Plaza and JX Cuisine, are expected to shut down around April 19, though developers have not confirmed a firm closure date.
Jeanie Chong, who operated Tous les Jours bakery at the location for more than a decade, alleges her lease was terminated under a redevelopment clause that she claims was misused to facilitate the property’s sale. According to court filings, Chong argues she signed a lease extension in 2023 under economic pressure, without being informed of plans to sell the property for housing development. She states the closure of both her Santa Clara and Fremont locations has caused significant financial hardship and resulted in abrupt job losses for employees.
In a separate complaint, Fuheng Herbs owner Dalong Zhang alleges deteriorating property conditions, including pest issues, blocked access, and roof leaks, while maintenance fees continued to be collected. Zhang also claims tenants were not adequately informed about redevelopment intentions.
Representatives for the former ownership and PulteGroup have not publicly responded to the allegations.
For many local residents, the closure of long-standing businesses marks the loss of a community cornerstone. Super Kyo-Po Plaza, a family-run Korean market, has served customers for decades and is known for its affordability and fresh produce. Residents say its closure will leave a noticeable gap in accessible grocery options.
The redevelopment reflects a broader push across Silicon Valley to address housing shortages. Santa Clara is required to add more than 11,000 housing units by 2031 under state mandates. Local officials have noted that cities have limited authority over private lease agreements, leaving disputes such as these to be resolved through the courts.
