City Council - 2026-02-24
Meeting Intelligence Preview
Meeting Summary
The San Jose City Council meeting on February 24, 2026 focused primarily on housing initiatives and development projects. Council approved funding agreements for two affordable senior housing developments at the East Santa Clara site (700 East Saint John Street and 675 East Santa Clara Street), totaling approximately 130 deeply affordable units. The council also approved a new Lower Income Voucher Equity Program to stabilize a distressed downtown residential asset through master leasing, with preference for public employees. Additionally, the council denied appeals and approved a site development permit for a 132,000 square foot industrial building at 2334 Lundy Avenue and a planned development permit amendment allowing 15 concerts per year at PayPal Park.
Key Decisions (7)
East Santa Clara Senior Affordable Housing at 700 East Saint John Street
Approved funding agreement with Eden Housing for 68 affordable units for seniors at 30-60% AMI. Project has 9% tax credits, county funding, Housing Authority funding, HUD 202 section program, and Bay Area Housing Innovation Fund support.
Trillium Senior Apartments at 675 East Santa Clara Street
Approved approximately $9 million city contribution for 62 affordable senior units at 30-50% AMI in partnership with Santa Clara County Housing Authority. Part of East Santa Clara Master Plan.
Lower Income Voucher Equity Program (LIVE Program)
Approved new master leasing program investing approximately $11.2 million over multiple years to buy down rents in a distressed downtown residential building, targeting 80% AMI with preference for public employees. City expects to recoup investment plus interest upon exit.
Alameda Business Improvement District Establishment
Established the Alameda Business Improvement District and approved levy of assessments for remainder of fiscal year 2025-2026, generating approximately $500,000 for the district.
Story Road Business Improvement District Report
Accepted report on establishment of the Story Road Business Improvement District for marketing, promotion, cleanliness and safety improvements.
Appeal of Industrial Building at 2334 Lundy Avenue
Denied environmental and permit appeals, approved site development permit for 132,000 square foot tilt-up industrial building with 10,000 square foot office on 6.5 acre site. Project includes demolition of existing building, removal of 152 trees, 24/7 operation with 16 loading docks, and new 8-foot masonry sound wall.
PayPal Park Concert Permit Amendment
Denied environmental and permit appeals, approved planned development permit amendment allowing 15 concerts per year at PayPal Park with speakers facing south toward residential neighborhood, replacing original mitigation requiring speakers face north toward airport.
Zoning Changes (1)
2334 Lundy Avenue
Overton Moore Properties
Development Activity (4)
East Santa Clara Senior Housing Phase 1
68 affordable senior units at 30-60% AMI, primarily one-bedroom units, part of East Santa Clara Master Plan redevelopment
Trillium Senior Apartments
62 affordable senior units at 30-50% AMI, 35 one-bedroom and some two-bedroom units, part of East Santa Clara Master Plan
2334 Lundy Avenue Industrial Building
132,000 square foot tilt-up industrial building with 10,000 square foot office on 6.5 acres, 16 loading docks, 24/7 operation, expected 80-125 high-tech jobs, estimated $800,000 year one property tax increase
Stack Infrastructure Data Center
Large new data center currently under construction
Market Signals (5)
Housing Demand
City implementing creative financing tools including master leasing to address distressed downtown residential assets while creating affordable housing, indicating both market stress and policy innovation.
Commercial Demand
North San Jose industrial corridor seeing continued investment with new 132,000 SF industrial building replacing vacant data center, developer citing strong demand for advanced manufacturing space with high power capacity.
Infrastructure
City investing in transit corridor improvements including King Road project spanning multiple miles with bus stop optimization, sidewalk improvements, and bike lanes.
Sentiment
Downtown activation efforts continuing with business improvement districts established for Alameda and Story Road corridors, generating approximately $500,000 annually for district improvements.
Housing Demand
City vacancy rate for positions dropped to 9.06%, lowest among major California cities, attributed to competitive wages and benefits from 2023 contract negotiations.