Ordinance to Establish the Community
Stabilization and Opportunity Pathways
Fund Commission
August 16, 2022
Nanci Klein, Director of Economic Development
Lori Severino, Assistant to the City Manager
Rosalynn Hughey, Deputy City Manager
Background
• May 2021: City Council
approved Google’s Downtown
West development project
• Development Agreement
outlines up to $200 million in
Community Benefits
• Equity focused, based on
extensive outreach process
from 2018-21
ST. LEO’S
DUPONT/
MCEVOY
GARDEN
ALAMEDA
DELMAS PARK
AUTUMN-
MONTGOMERY
Diridon
Station
Note: Illustrative massing reflects the combination of density allowed in project’s zoning and applicable Downtown West design standards and guidelines
DWDSG ILLUSTRATION
2 Community Stabilization and Opportunity
Pathways Fund
Exhibit H of the Development Agreement established the
framework for the Fund:
• Up to $154.8 million to the new Fund, with
contributions made as office is built out ($21.20 per
gross square foot)
• Grants to programs serving disadvantaged
communities in San José
• Guided by a third-party Fund Manager and 13-member
community advisory committee (“Commission”)
Image Credit: SEIU 521
Image Credit: LifeMoves
3 Fund Program Areas
Community Stabilization: displacement/
homelessness prevention, affordable
housing preservation, homeless
services, housing innovation research,
and stabilization of small local
businesses
Opportunity Pathways
: adult and youth
occupational skills training, college/post-
secondary scholarships, career
exploration for middle and high school
youth, early childhood education, and
small business and entrepreneurship
support
Image Credit: Rebuilding Together SV
Image Credit: YearUp
Image Credit: SJ Mayor’s Office
Image Credit: First Community Housing
4 Governance Objectives
• New model for decision-making
• Empower residents of impacted communities
• Bridge lived experience perspectives with
those of local leaders, direct service providers,
and technical experts
• Data-driven framework for establishing and
evaluating outcomes
• Appropriate “checks and balances” and
transparency
• Flexibility 5
Commission Composition/Requirements - Exhibit H
• 13 voting members
At least 5 with lived experience and 8 with technical expertise • Non-voting members: 3 City representatives, 1 Google, and potentially representatives from other major funders
• San José resident or worker
• Collectively reflect the City's diversity
6 Staff Recommendation (items not included in Exhibit H) • Four-year terms
• Option for reappointment, but for no more than 2 consecutive terms • To achieve staggering, 6 of the initial 13 members will serve 2-year terms and 7 will serve 4-year terms
• One alternate member that can serve in place of a voting member in the event of an absence
7 Staff Recommendation, cont.
Stipends:
• Each of the voting members (including the alternate) that meet the Lived Experience criteria will receive a $200 stipend if they attend a monthly Commission meeting
• Option to opt out
8 Staff Recommendation, cont.
Appointment of Members:
• Voting members and the alternate member shall be appointed to the Commission upon the City Manager’s recommendation to the City Council and the City Council's approval of such recommendation.
This section also applies to any vacancy to the Commission. • The City Manager will appoint non-voting ex-officio members. 9 Staff Recommendation, cont.
Selection Process:
• City Manager’s Office (CMO) will conduct the application and evaluation process.
• CMO will recommend a slate of 13 members (including the alternate) and present it to City Council for appointment. 10 Community Engagement
In developing the proposed ordinance:
• Two virtual community meetings
May 2 and June 27, 2022
• Gathered input on term staggering, stipends, and the member selection process
11 Next Steps
Fall 2022
• Conduct application and evaluation process
• Recommend slate for Council appointment
• Procure a consultant to assist with facilitation of the Commission 2023
• Onboard commissioners; capacity building
• Work with Commission to conduct RFP process for the Fund Manager • Begin the first 5-year Strategic Plan, with community engagement 2024
• Present the Strategic Plan to Council for approval
• Receive first $15 million contribution from Google, begin grant making 12 Back-up slides
Grant Making Process and Basic Roles
City adopts ordinance creating the Commission, appoints members based on criteria outlined in Development Agreement
With the Commission, City selects a Third-Party Fund Manager Fund Manager prepares initial 5-year Strategic Plan with Committee for Council approval
Fund Manager works with the Committee to prepare RFPs for grants, administers grant application/evaluation process
Fund Manager recommends qualified grant recipients to the Committee, consistent with the Strategic Plan
14 Commission Composition/Requirements - Exhibit H
“Local Lived Experience” includes individuals with personal knowledge of the root causes of displacement gained through direct, first-hand involvement.
• Shall live or operate a small business in a census tract categorized as ‘high-risk’ or ‘undergoing displacement’ by a credible, regularly updated source, including at least 2 from East San José and at least 1 from the Greater Downtown Area
• Should represent a range of experiences the Fund is intended to address (e.g., housing insecurity, neighborhood instability, homelessness, low-income, unemployment, and barriers to opportunity and economic mobility)
15 Commission Composition/Requirements - Exhibit H
The other eight (8) members of the Commission shall have significant professional experience and subject matter expertise (e.g., through service delivery, policymaking, academic, or institutional capacity), in one or more of the following fields:
• Affordable housing
• Tenant advocacy and support
• Homeless support services.
• STEAM education
• Workforce development
• Community development,
neighborhood leadership
• Minority-owned, disadvantaged, small,
or micro business retention and growth
• Philanthropy, fundraising, grant-making
• Nonprofit management
• Academic and/or research expertise in
relevant fields
16 Provisions already in Exhibit H
1) Fund purpose, program areas, and initial allocations 2) Grant Making Process (5-year Strategic Plan)
3) Administrative structure and basic roles
4) Committee Composition
5) Committee Selection Process
6) Public engagement
7) Checks and balances
17 DTW Community Benefits Summary
30 Additional Moderate-Income Units integrated with market-rate housing $7.0M Land Transfer to the City for development of affordable housing (subject to subsequent approvals) $8.4M
Community Stabilization and Opportunity Fund (community advisory committee)
up to $154.8M
as office is built
Payments to the City overtime for Economic Opportunity, Community Stabilization, Neighborhood Programs, and Early childhood education/ childcare up to $22.3M
as office is built
Early Payment for Community Stabilization, Job Readiness, Neighborhood Programs, and Fund set-up $7.5M
Total $200.0M
18