San José — As staff briefed the council on development cost drivers, several panelists and public commenters pressed the city to address small‑site economics, fee structures and labor protections.

Panelist Joss Veros and other market‑rate developers said the study’s two‑acre example site understates the constraints faced by small infill lots in established neighborhoods, where typical R‑1/R‑2 parcels range from roughly 0.14 to 0.46 acres and combined parcels often remain under 0.5 acres. "The two‑acre model allows larger builders to achieve economies of scale; that doesn’t reflect most of our in‑fill sites," Veros said, urging a fee‑scale framework for parcels under 0.5 acres. (Joss Veros, SEG 1219–1231)

Public commenters and union representatives offered consistent recommendations: defer some impact fees until certificate of occupancy (so fees are paid when impacts materialize), create a city liaison or navigator to help small developers use state exemptions (for example, AB 130 eligibility), and tie incentives to labor standards so project savings also benefit workers. Rigo Gallardo of the Carpenters union urged that incentives be coupled with strong wage and training provisions. (Rigo Gallardo, SEG 2260–2279)

Council response and staff direction: councilmembers Tordillos, Campos and others asked staff to expand analysis of small‑site typologies and to model fee alternatives (per‑unit vs. per‑square‑foot vs. scaled structures). Staff confirmed an internal workflow is examining tariff structures and that city workgroups (PVC/CED) are analyzing structural options and external improvement costs.

Outcome: councilmembers requested follow‑up data and sensitivity testing for small‑site economics ahead of the Jan. 27 policy package; no actions or votes were taken at the study session.