San Jose committee reviews FY25–27 economic strategy focused on retention, small business and downtown vitality

San Jose’s Unity and Economic Development Committee reviewed a proposed economic strategy work plan for fiscal years 2025–2027 on a presentation led by Nancy Klein, director of the Office of Economic Development and Cultural Affairs. The committee voted to accept the report and cross-reference it to full City Council for review on March 4.

The work plan condenses the city’s previous 12-goal strategy into five priorities: (1) retention, attraction and expansion of companies and sectors that increase jobs and revenue; (2) small business support and neighborhood vitality; (3) workforce training and career pathways; (4) downtown vitality and commercial/residential retention; and (5) strengthening the arts, sports and entertainment “experience economy.” Klein said the plan was built from an updated strategy and comparisons with peer cities.

Why it matters: Committee members framed the plan as a road map to grow jobs, support small businesses and help downtown recover foot traffic. The plan includes measurable targets and key results designed to focus limited staff and budget resources on the highest-impact work.

Key details and metrics - Office of Economic Development and Cultural Affairs (OEDCA) divides its work across business development, cultural affairs, workforce and real estate. Klein said the updated work plan pairs goals with specific objectives and key results. - Work2Future (workforce services) target: support at least 1,400 youth and adults, with a stated aim that 80% obtain employment in “high wage, high growth occupations.” Klein said more than 60% of those clients are unstably housed and 80% are BIPOC; the plan also includes pilot programs such as an in-custody workforce pilot serving 20 youth. - Downtown recovery: Klein cited recent data showing downtown is “58% back to work,” and emphasized tenant retention outreach to reduce vacancies. - Arts and culture: OEDCA funds arts and cultural grants through transient occupancy tax funds; Klein said the program distributes roughly $5 million annually and that at least 35% of funded projects are led by BIPOC artists or organizations.

Committee questions and follow-ups Councilmember Ortiz asked whether the city could do more to reduce permit costs and processing times for small, “mom-and-pop” businesses; Ortiz suggested exploring fee shifts or incentives so small businesses are not disadvantaged by cost-recovery fee structures. Staff described existing programs—small business allies, grant facilitation and streamlined review programs such as STAR and special tenant improvement processes—and said they will continue cross-departmental conversations with Planning, Building and Code Enforcement (PBCE) and Finance to identify additional options.

Committee members also pressed on workforce linkages to major incoming employers and asked how the city can incentivize local hiring. Jeff (Work2Future staff) described the office’s proximity to economic development as an asset for employer engagement and said roughly 83% of placed clients remain employed a year later.

Staffing and implementation Klein and other staff noted a hiring freeze affecting some positions; two recruitments were underway before the freeze. Staff said they will prioritize deliverables and seek cross-departmental partnerships if staffing gaps persist.

Next steps and action Councilmember Casey moved to accept the work plan and cross-reference it to full council on March 4; the motion was seconded and carried unanimously by the committee present.

Ending note Klein said this version of the work plan is an initial (“version 1”) proposal and that staff expect to refine metrics and deliverables before the council hearing in March.