Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Housing Development topic
No spam. Unsubscribe anytime.
Council advances multiple housing incentives; Gateway Tower and Bank of Italy moves toward construction
Summary
Council approved inclusion of Gateway Tower and the Bank of Italy conversion into downtown incentive programs and admitted El Paseo to the multifamily incentive program, advancing hundreds of housing units and several development fee/tax-waiver packages.
San Jose's City Council approved several development incentive actions on April 1 designed to accelerate housing production downtown and in key growth corridors.
Gateway Tower: The council admitted Gateway Tower (Core Affordable Housing) to the Downtown Residential Incentive Program. The 15'story project would deliver roughly 220 affordable units, funded through a complex package of city, county and state subsidies. Developers said construction is expected to start in mid'2026. "We're looking forward to break ground this summer," said Aaron Barger of Core Affordable Housing.
Bank of Italy conversion: Council also approved admission of the historic Bank of Italy building for conversion to about 109 residential units under the downtown program. The project, which is subject to historic preservation exemptions for some fees, will convert the landmark building to housing and remove a long-vacant property from the downtown inventory.
El Paseo (multifamily): The council admitted El Paseo, a large 772'unit development proposed by Sand Hill Properties, into the Multifamily Housing Incentive Program. Developers said the proposal includes roughly 39 income'restricted units and approximately 30,000 square feet of ground'floor retail; project leaders said they expect to pull permits in spring so towers can begin rising by mid'year.
Staff described the package of planned waivers and fee reductions for each admission (exemptions from certain local construction taxes, partial park-in-lieu reductions, and parking-fee waivers tied to labor standards in some cases). Housing Department staff framed the approvals as part of a broader set of incentive tools aimed to move projects from entitlement to shovel-ready construction in a constrained financing market.
Councilmembers welcomed the projects as tangible production steps. "These projects will bring hundreds of units into downtown and signal that incentives are working," said Councilmember Tordillos. Developers and housing staff stressed that public subsidy and fee flexibility remain necessary to unlock many large projects.
What happens next: Developers will proceed with permitting and financing steps. Council approvals admit the projects into incentive pipelines; specific construction and financing remains contingent on final lender approvals and building-permit issuance.
Sources: City Council hearing and Housing Department presentations.
