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San José council green-lights downtown housing incentives and infrastructure items
Summary
Council approved incentive packages for multiple downtown housing projects, admitted East Village business-improvement district measures to move forward, and approved infrastructure items including an LS Power franchise and the wastewater plant CIP update.
SAN JOSÉ — The San José City Council on Wednesday approved a series of housing and infrastructure actions intended to accelerate construction and strengthen local infrastructure.
Housing and incentives
Council admitted Core Affordable Housing’s Gateway Tower (220 units, fully affordable) and a historic conversion of the Bank of Italy into about 109 residential units into the city’s downtown incentives program. Both projects received fee and tax exemptions intended to reduce upfront costs and spur construction; city staff outlined exemption options and conditions tied to prevailing-wage and local-hire requirements. Core Affordable Housing said it plans to begin construction this summer.
Separately, the council approved admittance of El Paseo Saratoga, a 772‑unit multifamily project, into the multifamily incentives program; developer representatives said the incentives are necessary to start vertical construction and that the project includes ground-floor commercial space.
Councilmembers emphasized that the packages require project sponsors to meet labor and affordability commitments, and council votes on these items were unanimous.
East Village business-improvement district
Council approved the resolution of intent to create an East Village Business Improvement District to fund cleaning, safety and marketing services along East Santa Clara Street and adjacent commercial blocks. Staff described a two-zone assessment structure and an outreach timeline; business leaders from the district testified in favor.
Energy and infrastructure
Council also approved a franchise concession for LS Power Grid California for work at the Metcalfe substation intended to improve electric reliability in the region. Environmental and community groups urged careful review of local impacts tied to future data-center demand, and LS Power representatives said the project is part of a multiyear, multi‑agency reliability plan.
Wastewater capital program
Public Works staff updated the council on the San José–Santa Clara regional wastewater treatment plant capital-improvement program. Officials said the program has delivered roughly $1.2 billion in projects to date and will continue major work on primary clarifiers, aeration systems, biosolids digesters and pumping stations; staff said the plant now produces roughly 75% of its power on site and that planned investments aim to preserve reliability and comply with tightening nutrient-permit rules.
What’s next
Staff will proceed with project permit and funding actions as appropriate and continue outreach on the East Village district. The City will also advance planned CIP projects and continue seeking state and federal funding support for major plant work.
Votes at a glance: several housing incentive items and the LS Power franchise were approved unanimously; other items (for example the investment-policy debate) had separate votes earlier in the meeting.
