November 1st 2024.
San Jose officials are striving to revitalize the downtown area by proposing a new approach to the approval process for major development projects. They recognize that strict city regulations may deter potential projects from moving forward, so they want to create a pathway for developers to pitch their ideas as long as they bring significant benefits to the community, such as a major investment, addressing climate goals, or increasing housing production.
Mayor Matt Mahan explains that while it's important to plan and regulate development, the current zoning system can be too rigid and may prevent innovative ideas from coming to fruition. He believes that by allowing more flexibility and inviting developers to share their ideas, the city may receive proposals that don't perfectly align with existing regulations but could bring great value to the community.
Mahan shares that in recent years, multiple investors have expressed interest in potential projects, but were deterred by the lengthy and uncertain approval process for non-conforming uses. He gives an example of a developer who wanted to build a 20-story high-rise with ground-floor retail, but zoning regulations prevented them from doing so. As a result, the building remains vacant and damaged, instead of providing much-needed housing and retail space.
The proposed program will establish clear submission requirements and objective criteria for evaluating project proposals, such as density levels and housing production. Mahan envisions creative and mixed-use projects that incorporate public spaces, rooftop amenities, and a combination of residential, retail, and entertainment spaces. The key is that these projects must bring significant economic benefits to the city, such as job creation and increased tax revenue.
The proposal has received support from business and labor groups, who believe it could help alleviate the housing crisis and create job opportunities. They acknowledge the difficulties developers face in making projects financially feasible, especially with rising interest rates and construction costs. They see the program as a way to encourage the city to consider non-traditional projects that may have been previously overlooked.
The program will initially focus on downtown San Jose, as the city aims to create a more vibrant and mixed-use environment in that area. Mahan hopes that if successful, the program can be expanded to other urban villages in the future. He also notes that the city's current restrictions on where and when housing and job growth can occur may be hindering development. As the city continues to grow, it's essential to build more dense, walkable communities near transit, rather than continuing to sprawl outwards.
While the city faces budgetary challenges, it's clear that they recognize the importance of spurring development in order to generate revenue. They have already implemented initiatives such as waiving construction taxes and offering leasing incentives to attract businesses to the downtown area. However, they believe this new program could be the missing piece in their efforts to boost economic activity and attract investments.
Mahan concludes by expressing his hope that the city's message of being open for business will resonate with developers and lead to tangible projects in the near future. He acknowledges that the program may need to be adjusted or supplemented if it doesn't yield the desired results, but believes it's worth trying in order to move the city forward.
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