Council approves Berryessa mixed‑use zoning with conditions after wetland mitigation talks

SAN JOSE — The San Jose City Council on Aug. 12 approved zoning and related actions for a multi‑block development across from the Berryessa BART station that includes market‑rate housing and a planned several‑hundred‑unit affordable housing component, while adding conditions to address wetland mitigation and long‑term maintenance funding.

Councilmember Matt M. McCaughey (referred to in the meeting as McCaughey) said the Faccino parcel across Berryessa Road is a critical piece of the Berryessa/North San Jose urban village and described a plan that would allow the developer, Swenson, to break ground on "a couple 100 units of affordable housing" on one portion of the site as early as this fall. He said the developer needs to start construction by Oct. 1 to meet funding obligations.

The development team alerted the city that a drainage ditch on the property has been designated a wetland by the Regional Water Quality Control Board, which would require the project to replace the wetland as part of mitigation. City staff and the developer have been discussing potential responses, including reconfiguring park blocks, creating a small on‑site road to enlarge mitigation area, or pursuing an off‑site mitigation location.

To address ongoing maintenance costs, Councilmember McCaughey's memo directed city staff to study and potentially form a Community Facilities District (CFD) to provide perpetual funding for maintenance. The memo also asked the administration to consider the city serving as the property owner of record for purposes of collecting CFD assessments, and to include the Housing Department alongside Public Works and Finance in planning the CFD and park master plan. McCaughey moved to approve the memo with amendments; the motion passed unanimously.

City public works staff and Parks, Recreation and Neighborhood Services staff told council that the city does not currently have wetland maintenance expertise and that both the scope of maintenance and the annual cost are unknown. "We don't have expertise," a public works representative said, noting staff would need time to study what maintenance would entail and to determine the size of a CFD that would support it in perpetuity. Staff also said the Regional Water Quality Control Board is scheduled to consider the mitigation plan in September and that the board's approval would include a one‑year build timeline tied to ground‑breaking.

Councilmember Kamay and others raised questions about which party — the city, a homeowners association, or a contracted third party — would be responsible for long‑term upkeep. McCaughey's memo allowed for flexibility, saying maintenance could be assigned to the city, the homeowners association for buildings F and G, or a third‑party contractor, and asked staff to prepare options.

Labor groups also testified at the consent‑item hearing. Rigo Gallardo, representing the NorCal Carpenters Union, urged the council to require local apprentice utilization and strong labor standards on the project, saying such requirements help ensure local economic benefits.

The council instructed staff to pursue the study, return with recommended CFD sizing and maintenance options, and, if negotiations with the Regional Water Quality Control Board produced a viable off‑site mitigation alternative, to pursue that option. With those directions and the conditions described in McCaughey's memo, the council approved the land use items involving the Faccino/Berryessa property.

— Ending: The council's action clears the path for the developer to proceed with entitlements; the city will report back with the CFD study, park master plan timeline and recommended maintenance approach.