SALINAS, CA-In a possible retreat from legal threats, city officials here are discussing a possible settlement with its northern neighbor, the City of San Jose, with regard to Cisco Systems’ planned 688-acre Coyote Valley campus.

Salinas and other nearby cities say the 20,000-worker business park would impact traffic, environment, and housing affordability in the area. Salinas and others have for months threatened to file suit were the project approved, which it was. But on Monday, city officials in Salinas and San Jose began discussing possible compensation for the project’s effects, including housing and transportation subsidies, in order to head off at least one lawsuit.

Other entities such as the Association of Monterey Bay Area Governments, Santa Cruz County, and the Audubon Society still appear ready to file suit. They are facing a Dec. 7 deadline, according to San Jose officials. Cisco has also said it would be willing to negotiate a settlement with the Audubon Society in order to avoid a lawsuit. However, the group declined the offer.

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