TO: HONORABLE MAYOR FROM Rosalynn Hughey
AND CITY COUNCIL
SUBJECT: MONTEREY CORRIDOR WORKING DATE: September 2, 2022
GROUP REPORT
Approved Date
9/9/22
RECOMMENDATION
(a) Accept the Monterey Corridor Working Group Report.
(b) Direct staff to return to City Council with an update on progress in six months.
OUTCOME
The Monterey Corridor Working Group Report is the culmination of an extensive study to promote economic vitality, catalyze economic development, and promote livability and a sense of place along the Monterey Corridor, from Alma Avenue in Council District 7 to Blossom Hill Road in Council District 2. Acceptance of the report will enable City staff, transportation agencies, and other partners to implement strategies and use the report as a marketing tool.
BACKGROUND
At the January 10, 2019, City Council meeting,1 the City Council approved Mayor Liccardo’s recommendation to create the Monterey Corridor Working Group (Working Group) and appoint Councilmembers Maya Esparza and Sergio Jimenez to lead the Working Group.
The Working Group was tasked with addressing the potential benefits, challenges, and effects of the convergence of the High-Speed Rail project, increased Caltrain service, homelessness, and land use and redevelopment opportunities—including the General Plan Four-Year Review process and the Santa Clara County Fairgrounds. Staff was directed to work with the Councilmembers and the Mayor’s Office to seek resources—such as Metropolitan Transportation Commission planning grants—to further the Working Group and City Council’s goals and develop a two-year work plan. Staff was also directed to invite relevant stakeholders, including the California High-Speed Rail Authority, Santa Clara Valley Transportation Authority
1 https://sanjose.legistar.com/View.ashx?M=F&ID=6975471&GUID=25C64889 -348D-45E2-B272-A523E97384B9 COUNCIL AGENDA: 9/20/22
FILE: 22-1369
ITEM: 3.4
HONORABLE MAYOR AND CITY COUNCIL
September 2, 2022
Subject: Monterey Corridor Working Group Report
(VTA), Union Pacific Railroad, and Caltrain to Working Group meetings, and to provide meeting notices to nearby neighborhoods.
Led by Councilmembers Esparza and Jimenez, the Working Group membership includes a Council District 2 resident, a Council District 7 resident, and a representative from the following organizations:
• Coastal Lumber
• Granite Rock
• HomeFirst
• Mechanical, Electrical, Plumbing, and Fire Sprinkler Union • Monterey Corridor Business Association
• Santa Clara County Fairgrounds
• Silicon Valley Leadership Group
• The Plant Management
• VTA
Staff from the City Manager’s Office; Office of Economic Development and Cultural Affairs (OEDCA); Housing Department; Department of Transportation (DOT); Department of Parks, Recreation and Neighborhood Services (PRNS); and Department of Planning, Building and Code Enforcement (PBCE) provided strategic support to the Working Group.
ANALYSIS
The Monterey Corridor has the ingredients to be a “grand boulevard.” It has beautiful neighborhoods with engaged residents, thriving industrial businesses, commercial activity, amenities such as the Santa Clara County Fairgrounds, and opportunities for redevelopment.
However, the corridor is also challenged with illegal dumping, encampment activity, and graffiti.
The Working Group embarked on its work in the summer of 2019 and reviewed existing conditions and activities related to land use and business and economic development, transportation, beautification, and a sense of place. Briefings were provided on the industrial market, development opportunity site analysis and mixed-use densification, business retention and marketing strategies, and BeautifySJ efforts. After evaluating the information, the Working Group identified desired outcomes and proposed approaches to improving the corridor. Through this effort, the Working Group developed a vision and three strategic directions.
Vision
The Monterey Corridor will be a welcoming and connected community that celebrates the diversity of its people and the economic and cultural assets that support its residents and businesses. Its history is important and bolsters its significance as the Southern Gateway into the City.
HONORABLE MAYOR AND CITY COUNCIL
September 2, 2022
Subject: Monterey Corridor Working Group Report
Strategic Directions
• Promote Economic Vitality: The Monterey Corridor contains light- and heavy- industrial land, supporting opportunities for businesses. A growing sports and recreation sector could develop into a tourism district which would help to spur additional economic activity.
• Catalyze Development Opportunities: Continued investment in new construction and renovation can support the area’s existing facilities and economic viability.
• Promote Livability and Sense of Place: Although the Monterey Corridor is an industrial center and thoroughfare, it is also a community of existing residents and businesses. Enhanced identity and sense of place are necessary to retain and attract residents, newcomers, and visitors while improving the quality of life of its residents.
The Monterey Corridor Report outlines a vision and strategic directions that can guide investment and development along the Monterey Corridor. The report envisions a future in which residents and visitors can travel safely along the Corridor, participate in a community with diverse cultural, retail, sports, and entertainment offerings, and have access to living-wage jobs and economic opportunities. The City of San José can shape and guide how infrastructure projects, development, and investments benefit the community—residents and businesses.
Progress During the Pandemic
The COVID-19 global public health emergency temporarily redirected Working Group members and City staff to support response efforts. Working Group meetings were paused from April 2020 to March 2022. Despite the pandemic, some work continued, resulting in the following accomplishments:
• OEDCA brought on a new Monterey Corridor Business Manager to support the formalization of a business association and targeted outreach efforts; • VTA consolidated transit routes 66 and 68 and created the 568 Rapid route which travels along Monterey Road to and from the Gilroy Transit Station to the San José Diridon Station;
• Council District 7 and OEDCA launched a gateway branding banner campaign in 2021, which resulted in the installation of 80 banners spanning the length of the Monterey Corridor;
• OEDCA continued engaging with developers and property owners to discuss opportunities for improving or redeveloping key sites along the corridor; • PBCE applied for and the City received Priority Production Area designation through the Metropolitan Transportation Commission; the designation prioritizes industrial areas and makes the City eligible to apply for grant funds for planning and infrastructure projects; • OEDCA initiated a Monterey Corridor website, currently under development, that promotes the area as a business location;
HONORABLE MAYOR AND CITY COUNCIL
September 2, 2022
Subject: Monterey Corridor Working Group Report
• PBCE secured funding through the state Department of Housing and Community Development’s Local Early Action Planning Grant and initiated the Capitol Caltrain Station Area Plan in March 2022;
• BeautifySJ expanded staffing to address beautification efforts citywide, including along the Monterey Corridor;
• BeautifySJ successfully negotiated an agreement with Union Pacific Railroad to introduce beautification efforts within the property along the corridor; • California High-Speed Rail Authority approved the environmental impact report for the San José to San Francisco segment of the project;
• DOT received funding to design and conduct environmental analysis for the rail project’s grade separations; and
• DOT began planning and design work on quick-build projects to improve transit speeds, add protected bike lanes, and improve pedestrian crosswalks along Monterey Road. The specific list of projects is included in the report’s Attachment A.
Projected Implementation Timeline and Work Plan
The Projected Implementation Timeline and Work Plan outlines the Working Group’s next steps and the timeline over the next five years. Working Group members developed recommendations that correspond with the three strategic directions: Promote Economic Vitality, Catalyze Development Opportunities, and Promote Livability and a Sense of Place. Each recommendation aligns with new or existing transportation, economic development, beautification, and land use programs, projects, and services.
Strategic
Direction Recommendation Estimated
Start Date
Estimated
End Date Lead
Promote
Economic
Vitality
Increase business
engagement through
additional retention
visits and follow-up
Fall 2022
Contract
ends April
2023/budget
required to
extend
OEDCA
Consultant
Strategically promote
grant programs and
resources such as the
Storefront Grant
Program
Summer 2022 Ongoing OEDCA Business
Development Staff
Build the capacity of
businesses to create a
business association
Spring 2022 Spring 2023 OEDCA
Consultant
Support growing
business clusters such Ongoing Ongoing OEDCA Business
Development Staff
HONORABLE MAYOR AND CITY COUNCIL
September 2, 2022
Subject: Monterey Corridor Working Group Report
as sports and
recreation*
Foster retail
opportunities* Ongoing Ongoing OEDCA Business
Development Staff
Partner with the VTA
on its Community-
Based Transportation
Plan
Spring 2022 Spring 2023 VTA/DOT
Design quick build
improvements to speed
up transit and improve
safety
Ongoing Spring 2023 VTA/DOT
Actively preserve and
promote light and
heavy industrial land
uses
Ongoing Ongoing OEDCA Business
Development Staff
Catalyze
Development
Opportunities
Promote and attract
potential investors and
job-producing
opportunities to
vacant/underutilized
development sites*
Ongoing Ongoing OEDCA Business
Development Staff
Continue to promote
the Monterey
Corridor's unique
Opportunity Zone
Fall 2022 Ongoing
through 2026
OEDCA Business
Development Staff
Complete Capitol
Station Area Plan and
Submit to City Council
for Action
March 2022 June 2023 PBCE
Citywide Planning
Promote
Livability
and Sense of
Place
Engage the
neighborhood and
business community to
support blight
reduction efforts
Winter 2023 Summer
2023 PRNS/BeautifySJ
Proactively seek
funding for tree
planting and street
improvements
including pedestrian
safety amenities for the
public right-of-way
Unfunded Unfunded DOT
HONORABLE MAYOR AND CITY COUNCIL
September 2, 2022
Subject: Monterey Corridor Working Group Report
Complete the planning,
design, and
environmental
clearance for grade
separations at Skyway,
Branham, and
Chynoweth Avenues
Fall 2022 Winter 2024 DOT
Participate and
advocate for the
prioritization of public
art when the High-
Speed Rail Corridor
Planning committee
resumes
Unknown/
Dependent on
HSR
Unknown/
Dependent
on HSR
OEDCA/Cultural
Affairs Staff
Use existing
communications
channels to educate the
community about
positive changes in the
corridor*
Partially
Funded/
Ongoing
Partially
Funded/
Ongoing
PRNS/BeautifySJ,
Monterey Corridor
Website, all
departments as
appropriate
Explore opportunities
to enhance the
Corridor's Sense of
Place (i.e., banners,
murals, wayfinding)
Partially
Funded/
Ongoing
Partially
Funded/
Ongoing
City Council
Offices/OEDCA
Cultural Affairs
*Additional funding is required if focused and proactive implementation is desired.
Note: Estimated Start and End Times are subject to change based on the availability of resources.
CONCLUSION
The proposed work plan and timeline cover key elements of the Monterey Corridor including economic development, land use, transportation planning, community identity, and quality of life issues. Working Group members identified opportunities to retain existing and attract new businesses while strengthening the Monterey Corridor business community. The recommendations direct the City of San José and its key partners to take steps to create a future where the Monterey Corridor is an inviting destination for residents and visitors who can participate in diverse cultural, retail, and workforce opportunities.
EVALUATION AND FOLLOW-UP
City Council action will close out the initial direction related to the Monterey Corridor Working Group. Following the City Council’s review and acceptance of the report, the Administration
HONORABLE MAYOR AND CITY COUNCIL
September 2, 2022
Subject: Monterey Corridor Working Group Report
will continue implementing and executing recommendations with available resources. During the implementation process, staff will report on the work in progress as appropriate; staff intends to return to City Council after six months with a progress report.
CLIMATE SMART SAN JOSE
The recommendations in this memorandum align with one or more Climate Smart San José energy, water, or mobility goals. In the immediate term, there are no direct impacts on the environment. Long-term plans as indicated in the Monterey Corridor Working Group Report, can facilitate the reduction of energy use, and increase the demand for renewable energy. If implemented as envisioned, the High-Speed Rail project and the increase in the frequency of Caltrain service will encourage greater public transportation use while reducing greenhouse gas emissions. The Vision Zero efforts intend to improve traffic safety and reduce vehicle miles traveled along the Corridor. The Caltrain Station Area Plan has the potential to encourage greater interest in development along the transit corridor, with the potential of increasing transit-oriented development.
PUBLIC OUTREACH
Working Group members held 10 meetings from March 2019 to June 2022. The meetings were open to the public, whether held in person or virtually. Recordings of virtual meetings are available on the City of San José’s website. For more details about the public engagement process and meeting topics, refer to the Monterey Corridor Working Group Report, Introduction chapter.
COORDINATION
The Monterey Corridor Working Group Report was developed in coordination with Working Group members. Preparation of this memorandum has been coordinated with the City Attorney’s Office.
COMMISSION RECOMMENDATION/INPUT
No commission recommendation or input is associated with this action.
HONORABLE MAYOR AND CITY COUNCIL
September 2, 2022
Subject: Monterey Corridor Working Group Report
FISCAL/POLICY ALIGNMENT
The Monterey Corridor Working Group Report aligns with existing City of San José policies including the Envision San José 2040 General Plan, Climate Smart San José, Vision Zero Action Plan, and overarching land use and economic development efforts.
COST SUMMARY/IMPLICATIONS
The Working Group completed most tasks outlined in the City Council-approved January 10, 2019 memorandum from Mayor Liccardo that established the Working Group, and a few initiatives are in progress. However, some of the Working Group’s recommendations are unfunded which presents challenges to the full implementation and the realization of the Working Group’s vision. In addition, there are many uncertainties related to the High-Speed Rail project which is under the authority of the California High-Speed Rail Authority. While the Santa Clara County Fairgrounds is not in the purview of the City, the City could work with the County of Santa Clara and stakeholders to explore private development options, and then, identify funding sources at a later point. To realize the full vision of the Monterey Corridor Working Group vision, City staff will continue to apply for grants and seek additional funding as appropriate through the City’s budget process, prioritizing attracting potential investors to vacant and underutilized land for job-producing uses, beautification, and placemaking.
CEQA
Not a Project, File No. PP17-008, General Procedure and Policy Making resulting in no changes to the physical environment.
ROSALYNN HUGHEY
Deputy City Manager
For questions, please contact Nora Chin, Assistant to the City Manager, at [email protected] or (408) 535-8100.
Attachment – Monterey Corridor Working Group Report
SOUTHERN
GATEWAY
SAN JOSETO
MONTEREY ROADMONTEREY ROAD
CITY OF SAN JOSÉ
MONTEREY CORRIDOR
WORKING GROUP
REPORT
SEPTEMBER 2022
MONTEREY CORRIDOR WORKING GROUP REPORT
2 Executive Summary
Introduction
Existing Conditions
Current Activities and Services
Process to Develop a Vision and Strategic Directions
Progress During the Pandemic
Recommendations by Strategic Direction
Implementation
Monterey Corridor Working Group Membership
1 2
3 4
5 6
7 8
3 5
7 14
17 19
20 25
26 TABLE OF CONTENTS
CHAPTER TITLE PAGE
MONTEREY CORRIDOR WORKING GROUP REPORT
3 EXECUTIVE SUMMARY
In January 2019, the City Council approved Mayor Sam Liccardo’s recommendation to create the Monterey Corridor Working Group. The Working Group, led by Councilmember Esparza and Councilmember Jimenez met from May 2019 to June 2022, and examined the transportation, land use and economic development, and quality of life issues facing the corridor. The study area extended from Alma Avenue in District 7 to Blossom Hill Road in District 2. The Working Group developed a vision and three strategic directions for desired outcomes and approaches: 1) Promote Economic Vitality, 2) Catalyze Devel- opment Opportunities, and 3) Promote Livability and Sense of Place. The final recom - mendations are categorized by the three strategic directions:
Strategic
Direction Recommendation Estimated
Start Date
Estimated
End Date Lead
Promote
Economic
Vitality
Increase business engagement
through additional retention
visits and follow-up
Fall 2022
Contract ends
April 2023/budget
required to extend
OEDCA Consultant
Strategically promote grant
programs and resources such
as the Storefront Grant Program
Summer 2022 Ongoing OEDCA Business
Development Staff
Build the capacity of businesses
to create a business association Spring 2022 Spring 2023 OEDCA Consultant Support growing business
clusters such as sports and
recreation*
Ongoing Ongoing OEDCA Business
Development Staff
Foster retail opportunities* Ongoing Ongoing OEDCA Business Development Staff
Partner with the VTA on
its Community-Based
Transportation Plan
Spring 2022 Spring 2023 VTA/DOT
Design quick build
improvements to speed up
transit and improve safety
Ongoing Spring 2023 VTA/DOT
Actively preserve and promote
light and heavy industrial land
uses
Ongoing Ongoing OEDCA Business
Development Staff
Catalyze
Development
Opportunities
Promote and attract potential
investors and job-producing
opportunities to vacant/
underutilized development
sites*
Ongoing Ongoing OEDCA Business
Development Staff
Continue to promote the
Monterey Corridor’s unique
Opportunity Zone
Fall 2022 Ongoing through
2026
OEDCA Business
Development Staff
Complete Capitol Station Area
Plan and Submit to City Council
for Action
March 2022 June 2023 PBCE
Citywide Planning
MONTEREY CORRIDOR WORKING GROUP REPORT
4 Strategic
Direction Recommendation Estimated
Start Date
Estimated
End Date Lead
Promote
Livability and
Sense of Place
Engage the neighborhood
and business community
to support blight reduction
efforts
Winter 2022 Summer 2023 PRNS/BeautifySJ
Proactively seek funding
for tree planting and street
improvements including
pedestrian safety amenities
for the public right-of-way
Unfunded Unfunded DOT
Complete the planning,
design, and environmental
clearance for grade
separations of Skyway,
Branham, and Chynoweth
Avenues
Fall 2022 Winter 2024 DOT
Participate and advocate for
the prioritization of public art
when the High-Speed Rail
Corridor Planning committee
resumes
Unknown/
Dependent on HSR
Unknown/
Dependent on
HSR
OEDCA/Cultural
Affairs Staff
Use existing communications
channels to educate the
community about positive
changes along the corridor*
Partially funded/
Ongoing
Partially funded/
Ongoing
PRNS/BeautifySJ,
Monterey Corridor
Website, all
departments as
appropriate
Explore opportunities to
enhance the corridor’s
sense of place (i.e., murals,
wayfinding, etc.)
Partially funded/
Ongoing
Partially funded/
Ongoing
Council Offices/
OEDCA Cultural
Affairs
Though this effort began in May 2019, the global public health emergency COVID-19 temporarily paused Working Group meetings from April 2020 to March 2022 as staff pivoted to support emergency response efforts. Despite the temporary pause, City staff and agency partners continued working on Monterey Corridor initiatives, and signifi - cant progress was made, including completing a gateway branding banner campaign, securing funding, initiating the Capitol Caltrain Station Area Plan, bringing on a Monterey Corridor Business Manager, and the Santa Clara Valley Transportation Authority (VTA) creating a rapid bus route along the corridor.
After reconvening in March 2022, the Working Group considered new opportunities and progressed to finalize recommendations. This report details the Working Group’s process, analyses, and recommendations to leverage transportation investments and development opportunities and realize an enhanced, vibrant corridor for residents, businesses, and visitors.
*Additional funding is required if focused and proactive implementation is desired.
Note: Estimated Start and End Times are subject to change based on the availability of resources.
Table 1. Recommendations to Promote Economic Vitality, Catalyze Development Opportunities, and Promote Livability and Sense of Place.
MONTEREY CORRIDOR WORKING GROUP REPORT
5 1. INTRODUCTION
STUDY AREA
The study area is Monterey Road from Alma Avenue to Blossom Hill Road and approx- imately a half-mile on either side of the corridor. The northern portion of the Corridor is mostly industrial, and the southern portion is largely residential. Figure 1 shows the study area boundary and land use designations for the corridor as included in the Envision San José 2040 General Plan (General Plan). The General Plan also designates two employment growth areas for the Monterey Business Corridor and Senter Road Growth Area.
Figure 1. Monterey Corridor Study Area and Boundary
MONTEREY CORRIDOR WORKING GROUP REPORT
6 WHY STUDY THE CORRIDOR NOW?
The convergence of these multi-year and multibillion-dollar transportation infrastructure projects creates opportunities for the City of San José to plan for a future that supports a thriving local economy and a vibrant environment for existing and new residents, busi- ness owners, and workers. Thoughtfully driving investment and building momentum around commercial, industrial, and retail opportunities along the Monterey Corridor helps to elevate the experience of its residents and visitors as it prioritizes the local economy, business, job opportunities, and future commuters. The City of San José and its partners can design new and innovative solutions to serve existing residents who are experiencing challenges and a chance to dignify the human-scaled experience along the Monterey Corridor.
Supporting the Monterey Corridor serves the community’s goals of creating economic opportunity. The area provides quality industrial jobs for workers who may not have a four-year college degree. The Monterey Corridor provides a home for many smaller, family-owned manufacturers. The local manufacturing sector not only contributes to the number of quality jobs locally but also has the largest economic multiplier of any sector in the U.S. economy, supporting two and a half jobs for every one job in manufacturing.
PROCESS
Led by Councilmember Maya Esparza and Councilmember Sergio Jimenez, the Work- ing Group developed a shared understanding of the issues and opportunities along the Monterey Corridor. During each meeting, the Working Group delved into the challenges and opportunities of land use, economic development, transportation planning, and beautification efforts along the Corridor. The Working Group offered different approaches and noted how existing programs, proposed investments, and ongoing projects could improve the conditions of the community. In the first Working Group meeting, members defined the scope of work and specified ways in which the Working Group process aligns with the City’s, VTA’s, and the South Bay Rail Corridor’s long-term planning efforts.
Thereafter, the meetings covered economic development, land use, transportation planning, and beautification efforts. As the Working Group completed its discussion on the existing conditions and opportunities, they determined the three strategic directions, which ultimately guide the final recommendations. The following is a list of Working Group meetings and topic areas:
May 24, 2019 Kick off, Corridor Context, Group Purpose, and Focus June 27, 2019 Business & Economic Development, and Planning & Land Use August 22, 2019 Transportation Planning
November 7, 2019 Beautification and Sense of Place
January 23, 2020 Corridor Development Opportunities, Vision, and Strategic Direction March 5, 2020 Where We Were, What’s Changed, and Next Steps March 2, 2022 Corridor Development Opportunities, Funding Priorities and Partnerships April 6, 2022 Review Recommendation Ideas/Concepts
May 4, 2022 Review Draft Recommendations
June 1, 2022 Finalize Recommendations
MONTEREY CORRIDOR WORKING GROUP REPORT
7 2. EXISTING CONDITIONS
HISTORY AND CORRIDOR CONTEXT
Rail and Gateway Corridor
The City of San José and many Santa Clara County cities experienced substantial devel- opment when the San Francisco and San José Railroad Company began service in 1863.
The regional passenger rail prompted investment and development along Monterey Road, which linked San José to the City of Monterey. For many years, the road comprised primarily of agricultural uses along its borders. In the mid-twentieth century, as Ameri- can car culture exploded, the road saw more businesses catering to travelers, a legacy that survives today with more than a dozen mid-century motels still in existence. In the 1970s and 80s, industrial businesses, such
as warehousing and manufacturing, estab-
lished themselves deep within the corridor,
especially in the area from Alma Avenue
to Tully Road. Meanwhile, commercial
services such as restaurants also expanded
into Alma Avenue and Tully Road. Many of
these industrial businesses utilized a UPRR
freight railroad spur, which still runs through
the area.
Much of Monterey Road was eventually
incorporated into Highway 101 as the federal
government further built out the highway
system in the twentieth century. Today,
Monterey Road remains a major Silicon
Valley thoroughfare that runs from Gilroy
north to San José and is the main southern
gateway to downtown San José.
MONTEREY CORRIDOR WORKING GROUP REPORT
8 COMMUNITY PROFILE
Overall, the resident profile in this area indicates
lower higher-education attainment rates and
lower incomes than in other parts of the City
and the region. Approximately 27% of Monte -
rey Corridor residents over the age of 25 have a
college education compared to 41% of the City.
About 24% of residents over the age of 25 do
not have a high school education as seen in the
Educational Attainment in Figure 2. The average
median household income of people living in
the area is approximately $71,485, whereas the
median household income in the city is $117,324.
About 14% of the population lives below the
poverty level, compared to the city average of
10%. Extreme pockets of poverty exist within the
east Monterey Business Corridor communities, where the median household income is $22,000. Several deed-restricted affordable apartments and mobile home communities contribute to the socioeconomic diversity of the region. Many residents along the Corridor rely on these affordable housing options.
The Monterey Corridor community is diverse: 39.6% White, 34.5% Asian, and 2.8% of Black/ African-American. Hispanic and Latino residents make up 42.6% of the Monterey Corridor community as shown in Figure 4.. Over 60% of the population speaks a language other than English1, with these residents speaking primarily Spanish. 24%
27%
49%
Less than
High School
Graduate
City of San Jose
Monterey Road
Bachelor's
degree
or higher
High school
graduate
or higher
(Some College
and Associate
Degree)
EDUCATIONAL ATTAINMENT
IN THE STUDY AREA
MEDIAN INCOME COMPARISON
ECONOMICAL VITAL SIGNS
RACE & HISPANIC/LATINO
ETHNICITY DISTRIBUTION
0 $20,000$40,000$60,000$80,000$100,000$120,000
2.8%
34.5%
39.6% 42.6%
Black or AA Asian White Hispanic or
Latino
(of any race)
per quarter generated
for the city on
Monterey Road itself
~$1.7M in sale tax
per quarter generated
in wider study area
~$3.8M in sale tax
6.2M SF Industrial
2.3% Vacancy
573k SF Retail
2.3% Vacancy
BUILDING BASE
BUILDING BASE
24%
27%
49%
Less than
High School
Graduate
City of San Jose
Monterey Road
Bachelor's
degree
or higher
High school
graduate
or higher
(Some College
and Associate
Degree)
EDUCATIONAL ATTAINMENT
IN THE STUDY AREA
MEDIAN INCOME COMPARISON
ECONOMICAL VITAL SIGNS
RACE & HISPANIC/LATINO
ETHNICITY DISTRIBUTION
0 $20,000$40,000$60,000$80,000$100,000$120,000
2.8%
34.5%
39.6% 42.6%
Black or AA Asian White Hispanic or
Latino
(of any race)
per quarter generated
for the city on
Monterey Road itself
~$1.7M in sale tax
per quarter generated
in wider study area
~$3.8M in sale tax
6.2M SF Industrial
2.3% Vacancy
573k SF Retail
2.3% Vacancy
BUILDING BASE
BUILDING BASE
1 U.S. Census Bureau. (2019). American Community Survey 1-year Estimates [Table S1810]. Retrieved from https:/ /www.census.gov/acs/ www/data/data-tables-and-tools/subject-tables/; (April 1, 2019) Figure 2. Educational Attainment in the Study Area
Figure 3. Median Income Comparison Figure 4. Race and Hispanic/Latino Ethnicity Distribution
MONTEREY CORRIDOR WORKING GROUP REPORT
9 EMPLOYMENT AND ECONOMIC DEVELOPMENT
The General Plan projects the addition of 3,370 jobs and approximately one million square feet of employment space to the Monterey business corridor and Senter Road growth area. Under the General Plan, most properties along Monterey Road between Alma Avenue and Curter Avenue are designated for industrial and commercial land uses, allowing for flexibility of uses. The diverse businesses here include a variety of companies in wholesale trade, warehouse, and distribution, building materials, construction, auto service, retail, and services. The diversity of businesses reflects property conditions, with a wide range of parcel size,
building age, and street infra-
structure. Many businesses
are micro-businesses, which
employ fewer than 10 people.
Together, all businesses on
the corridor employ more than
20,000 workers. Some major
employment anchors include
Maxar Space, Sims Metal,
Costco Wholesale, Amazon,
Sprig Electric, Cortec Preci -
sion Sheetmetal, and several
cannabis dispensaries. The
Plant Retail Center, which
includes Target and Home
Depot, anchors the retail mix
along the Corridor. Figure 5
provides economic vital signs
for the study area.
RESIDENTIAL GROWTH
Under the General Plan, planned residential growth along the corridor includes the Monterey Road/Chynoweth Road Urban Village with 96 housing units, and more significantly, the newly-designated Capitol Caltrain Station Area with 700 housing units.
Between 2013 and 2018, several projects surrounding the study area added significant housing, including the Montecito Vista project (809 units), and the old Hitachi campus located at the southern end of Monterey Road, between Cottle Road and Highway 85 (2,800 units). Also, the Communications Hill Specific Plan, which is nearly built out, includes 2,777 housing units.
24%
27%
49%
Less than
High School
Graduate
City of San Jose
Monterey Road
Bachelor's
degree
or higher
High school
graduate
or higher
(Some College
and Associate
Degree)
EDUCATIONAL ATTAINMENT
IN THE STUDY AREA
MEDIAN INCOME COMPARISON
ECONOMICAL VITAL SIGNS
RACE & HISPANIC/LATINO
ETHNICITY DISTRIBUTION
0 $20,000$40,000$60,000$80,000$100,000$120,000
2.8%
34.5%
39.6% 42.6%
Black or AA Asian White Hispanic or
Latino
(of any race)
per quarter generated
for the city on
Monterey Road itself
~$1.7M in sale tax
per quarter generated
in wider study area
~$3.8M in sale tax
6.2M SF Industrial
2.3% Vacancy
573k SF Retail
2.3% Vacancy
BUILDING BASE
BUILDING BASE
T otal Employment # OF Biz %
1-10 employees 708 87%
11-35 employees 81 10%
36-100 employees 22 3%
101-300
employees 6 1%
Figure 5. Economic Vital Signs showing 2019 data.
MONTEREY CORRIDOR WORKING GROUP REPORT
10 TRANSPORTATION
The General Plan designated Monterey Road as a Grand Boulevard 2, indicating that it is a major transportation corridor connecting City neighborhoods and intersecting near the Capitol Caltrain station. The Grand
Boulevard designation promotes multi-modal
travel such as walkability, cycling, and public
transportation.
The Monterey Corridor is at the center of
Caltrain, High-Speed Rail, and City transporta-
tion planning efforts. The two Caltrain stations
in the study area are Capitol Station located
near Capitol Expressway at Monterey Road
and Blossom Hill Station at the Monterey and
Ford Roads intersection. Both stations provide
limited daily service: three northbound trains
in the morning and three southbound in the
afternoon. The Blossom Hill station is the
southernmost Caltrain station in San José. However, Caltrain’s 2040 Service Vision , adopted in late 2019, proposed increases in service at both Capitol and Blossom Hill stations on Monterey Road, from three roundtrips a day to 15-minute headways through- out the day. In this plan, Caltrain’s initial ridership forecasts show an increase in the combined ridership at these two stations from existing levels of under 200 passengers daily to over 4,000 riders if the frequency of service increases. The increased frequency of service and the construction of the Diridon Integrated Station Project in Downtown San José require the relocation of Caltrain’s and Capitol Corridor’s train storage and maintenance to an expanded yard. More frequent service means a need for more trains and a need for more space for maintenance of the trains. The project team continues to work with its partners to determine the next steps.
The High-Speed Rail project occupies approximately 21 miles within San José city limits and includes the Monterey Corridor. The High-Speed Rail Authority evaluated alterna- tive scenarios and impacts. One scenario included the addition of mainline tracks which require significant reconstruction of the roadway. The non-action scenario maintained the existing service frequencies.
In April 2022, the High-Speed Rail Authority approved the scenario with blended at-grade tracks from downtown San José to Gilroy, which is largely within the existing rail alignment owned by Caltrain and UPRR. Although this scenario provides many benefits including ease of access for maintenance, the at-grade crossing feature poses significant safety issues as the trains could operate at speeds of up to 110 miles per hour. More recently, on August 18, 2022, the High-Speed Rail Authority certified the Environmental Impact 2 Envision San José 2040 General Plan. (n.d.). Retrieved May 23, 2022, from https:/ /www.sanjoseca.gov/home/showpublisheddocument/22359/637841721973600000
MONTEREY CORRIDOR WORKING GROUP REPORT
11 Report for the San Francisco to San José Project Section. This milestone builds on the Caltrain electrification project and will incorporate the infrastructure necessary to run high-speed rail service in the corridor.
VTA developed immediate, near-term, and long-term plans for bus service improvements. As part of VTA’s 2019 Transit Service Plan, two transit lines, routes 66 and 68, will operate along Monterey Road. In collaboration with the VTA, the City continues to work on the rapid transit lane and transit signal priority, which will greatly speed up transit service.
Some of the highest traffic fatalities are located along Monterey Road in San José. The City’s Vision Zero Safety Corridors include Monte- rey Road for pedestrian and bicycle safety improvements. The City plans to create a safe and pedestrian-oriented Monterey Corridor through a multimodal transportation plan. Through its Rail Corridor Plan, the City regularly coordinates efforts between High-Speed Rail, Caltrain, and the City of San José. More details about the City’s transportation projects along Monterey Road are available under the “Transportation Projects in Progress” section of the report. Though many more improvements are planned for the Monterey Corridor, some safety enhancements have already been implemented includ- ing the build-out of pedestrian facilities to increase public transit access and safety.
BEAUTIFICATION EFFORTS
The City of San José focused its beautification efforts on Monterey Road North (Alma Avenue to Tully Road), Monterey Road Central (Tully Road to Skyway), and Monterey Road South (Skyway Drive to Blossom Hill Road) for blight reduction and beautification.
The Working Group added that the Corridor experiences several challenges including graffiti on UPPR property, illegal dumping, debris, and encampments along with the three major segments of the Corridor. With these challenges on UPPR property along the Monterey Corridor, the City and UPRR entered an agreement, the only agreement of its kind in the country, to address maintenance, blight, and illegal dumping within UPPR property. Also, to address some of these blight-related issues, the City allocated a budget for the BeautifySJ program to address litter and illegal dumping citywide with a special focus along the corridor. The City participated as a key stakeholder in the County of Santa Clara’s Community Plan to End Homelessness 2020-2025. The City and the County’s partnership to holistically address homelessness throughout the County is relevant to the blight issues along the Monterey Corridor. The Plan’s primary strategies are: 1) address the root causes of homelessness, 2) expand homelessness prevention and housing programs, and 3) improve the quality of life for unsheltered individuals and create healthy neighborhoods for all. In 2020, the City Council reserved additional funds to implement trash and debris removal at encampments to reduce blight. Despite over 400 tons of debris collected and 43,000 square feet of graffiti abated, the area continues to experience ongoing blight issues and challenges.
MONTEREY CORRIDOR WORKING GROUP REPORT
12 MONTEREY ROAD NORTH
Monterey Road North includes the UPRR property. Despite challenges like blight, Monte- rey Road North has the greatest potential for beautification and investment. Permanent supportive housing, temporary shelters, and services are available in the area to address housing issues. The BeautifySJ program removes graffiti and illegally dumped materials and provides services to encampments.
MONTEREY ROAD CENTRAL
Similarly, Monterey Road Central experiences chal -
lenges, but with attention and resources, this area is
prime for interagency coordination and clean-ups. This
section of the Corridor includes homes and businesses.
The City, County, and UPRR jurisdictions overlap in this part of the Monterey Corridor. BeautifySJ works collab- oratively with these key partners to leverage resources to address blight.
MONTEREY ROAD SOUTH
Through Council District 2’s support, additional
one-time funding was made available to implement
a call-to-action campaign by engaging residents to
reduce blight. Aesthetically, Monterey Road South,
which includes Monterey and Roeder Roads which
borders the Edenvale Shopping Center are great candi-
dates for beautification.
SPORTS, RECREATION, AND
ENTERTAINMENT
San José State University (SJSU)
Though the Monterey Corridor comprises largely
industrial land use, the area includes several long -
standing sports, recreation, and community anchors.
This includes SJSU’s South Campus, a 62-acre
complex comprised of the Citizens Equity First Credit
Union (CEFCU) Stadium, Simpkins Athletic Building,
Simpkins Center, and athletic playing fields. Many of
SJSU’s collegiate athletic teams, marching band prac-
tice, Reserve Officer’s Training Corps, intramurals, and other activities use the South Campus.
MONTEREY CORRIDOR WORKING GROUP REPORT
13 Sharks Ice/Solar4America Ice at San José
In partnership with the City, the Sharks Ice facility has expanded, adding two recreational ice sheets and a new 4,200-seat arena, TechCU Arena, which serves as a home for the San José Barracuda, the American Hockey League development affiliate of the National Hockey League’s San José Sharks. The $40 million project opened in August 2022 and is the largest indoor ice facility in the United States.
Santa Clara County Fairgrounds
The Santa Clara County Fairgrounds is a cultural and recreational institution at Monte- rey and Umbarger Roads. It includes more than 100 acres used for events, concerts, weddings, and festivals. The County recently committed to making major improvements to enhance the Fairgrounds by signing a long-term agreement with the Santa Clara County Fairgrounds Management Corporation, providing certainty for long-term invest- ments into the Fairgrounds. With this commitment, the County has entered into Exclusive Negotiating Agreements with Major League Cricket to potentially construct a 10,000-seat cricket stadium, the San José Earthquakes to construct a 10-field Soccer Complex, San José State University to construct the Speed City Legacy Center, and Track and Field Training Facility, and other infrastructure upgrades that allow for community use.
MONTEREY CORRIDOR WORKING GROUP REPORT
14 3. CURRENT ACTIVITIES AND SERVICES
The Working Group discussed how ongoing programs, projects, and services align with the vision of the Monterey Corridor. When enhanced, these existing programs and proj- ects can amplify the Monterey Corridor’s intrinsic assets.
ECONOMIC AND BUSINESS DEVELOPMENT
The Office of Economic Development and Cultural Affairs (OEDCA) promotes the Monte- rey Corridor in the normal course of business. OEDCA staff acts on leads to recruit companies to opportunities on the corridor; informs developers, companies, brokers, and investors about the light- and heavy-industrial opportunities; and engages busi - nesses to share useful information and resources. Moreover, OEDCA regularly engages with businesses along the Corridor to identify challenges and ways in which the City can support business retention, offer workforce assistance, or spur property improvements through city grants. More recently, the City launched an effort to better support the existing business association in the area.
TRANSPORTATION
Current and planned transportation infrastructure projects will greatly enhance mobility options along the Monterey Corridor. The Department of Transportation (DOT) intends to rebuild Monterey Road as a Grand Boulevard and complete street. In collaboration with the VTA, DOT has begun designing quick-build projects to improve transit speeds, adding protected bike lanes, and improving crosswalk access to support transit use. DOT is also advancing grade separation planning and design. Figure 6 and Table 1 show the transportation and public works projects recently completed or in progress.
A growing sports, recreation, and entertainment district along the corridor has the potential to attract many visitors, students, and families who might arrive by car, bicycle, foot, and public transportation. To support mobility and circulation, City staff are holis- tically designing a multimodal corridor that enhances safety and the user experience.
In tandem, the Department of Transportation has planned and received funding to support safety improvements along 4.7 miles of Senter Road, between Story Road and Monterey Road. The proposed improvements can make this corridor safer, connected, and more amenable for all street users, supporting the City’s strategy to eliminate traffic fatalities and severe injuries on the streets. Some possible streetscape improvements include planted median islands, additional streetlights, enhanced crosswalks with safety detection systems, improved traffic signals, and protected bike lanes. These amenities can enhance the multi-modal mobility experience of people visiting the fairgrounds, SJSU, and the ice rinks.
MONTEREY CORRIDOR WORKING GROUP REPORT
15 Transportation Projects in Progress
Project Lead Agency Scope/Notes
1. Monterey Road Transit Study DOT Design
2. Community Based
Transportation Plan VTA Create a list of long-term transportation improvements
3. Grade Separations DOT For: Skyway, Branham, and Chynoweth
4. Vision Zero safety project
DOT Pedestrian fence from Curtner to railroad tracks and automated license plate reader
5. Pedestrian Safety Plan
DOT Quick build plans in four city council districts with the most fatal and severe injuries: 3, 5, 6, and 7
6. Valleyhaven and Monterey DOT Safety-related closure of median and completed
7. Rail Corridor and Facilities Plan
Caltrans New consolidated rail yard and maintenance facility planning and design
8. Green infrastructure project
Public Works
A feasibility study was conducted to assess the feasi-
bility of a green infrastructure project at Monterey and Umbarger Road. No plans or next steps identified yet.
Figure 6. Transportation Projects Recently Completed or in Progress
MONTEREY CORRIDOR WORKING GROUP REPORT
16 The Monterey Road Complete Street/Grand Boulevard transformation is a future, multi-million-dollar design and reconstruction project. If funded, the vision of Complete Streets along Monterey Road including safety enhancements can be realized.
LAND USE AND DEVELOPMENT OPPORTUNITIES
As part of OEDCA’s ongoing work, staff continues to engage developers and property owners to discuss opportunity sites, with significant interest from existing anchors or potential newcomers. Moreover, the OEDCA team continues to promote the industrial Opportunity Zone, which provides a federal tax benefit for investing in certain areas, and is exploring how it can be used to support industrial and small businesses. The City is eligible to seek reimbursement from the U.S. Economic Development Administration to prepare an Opportunity Zone study within the Corridor. In 2020, a portion of the Monterey Corridor was designated as a Priority Production Area by the Metropolitan Transportation Commission following a City application. This designation is designed to support regional industrial hubs and could unlock grants to support transportation infrastructure.
In March 2021, the Citywide Planning Division of the Department of Planning, Building, and Code Enforcement (PBCE) initiated the Capitol Caltrain Station Area Plan. The idea for the Station Area Plan grew out of Working Group discussions about the opportunity to create a new mixed-use district around the transit station where new housing could be added. The scope of the Station Area Plan includes community engagement, real estate market and land use analysis, circulation and connectivity, urban design and public realm features, and locations for gathering spaces and open spaces.
BEAUTIFICATION
BeautifySJ’s dual roles of addressing blight through clean-ups and beautification efforts are challenging but important to improving the sanitation of the physical space and people’s experience of the Monterey Corridor. Specifically, BeautifySJ continues to proactively remove graffiti and litter on a regular schedule. BeautifySJ’s staffing increased to accommodate the additional requests for clean-ups. More importantly, BeautifySJ successfully negotiated a contract with the UPRR to collaborate on blight reduction efforts on the UPRR property. BeautifySJ intends to engage the neighborhood and the business community to support targeted blight reductions.
MONTEREY CORRIDOR WORKING GROUP REPORT
17 4. PROCESS TO DEVELOP A VISION
AND STRATEGIC DIRECTIONS
At the January 23, 2020, Working Group meeting, members participated in a group exercise to articulate the shared vision and desired outcomes for the corridor. Members recognized gaps in the transportation network, the need to prominently share the rich history of Monterey Road, the inherent socio-economic challenges, and the little-known ample economic and job growth opportu-
nities of the corridor. Members proposed
desired outcomes to address each existing
condition descriptor. For example, when
discussing the corridor and its connectivity
to San José, members noted that the corri-
dor felt “fragmented” and “separated” from
the rest of the City and region. Members
expressed the opportunity to connect the
corridor to the broader region through
investments in a multimodal transporta -
tion system.
Working Group members added that the
corridor’s industrial job sector provides
important, living-wage jobs to many resi -
dents. These economic opportunities are
often overlooked and should be highlighted to build pride in the community and its economic engine. As one of the last and largest concentrations of light and heavy industrial land in urban Silicon Valley, the area is attractive for manufacturers and other industrial-oriented companies looking for a home. Better highlighting the corridor’s underutilized assets and land use possibilities could attract businesses while preserving the area’s important industrial ecosystem.
Additionally, Working Group members acknowledged that the corridor’s rich history should be elevated through a cohesive identity and branding strategy. This branding identity could highlight the corridor as the “Southern Gateway to San José,” celebrating its history, economic opportunities, and position as a key thoroughfare.
While there are challenges with the corridor’s existing appearance, the Working Group members shared confidence that with strategic investments, Monterey Corridor is poised to be a place where residents and businesses thrive. To achieve this, members stressed the importance of collaboratively with multiple agency partners to address graffiti, sani- tation, and services and housing for unhoused residents.
MONTEREY CORRIDOR WORKING GROUP REPORT
18 VISION
At the end of the exercise and discussion, the
Working Group agreed on the following vision:
The Monterey Corridor will be a welcoming and
connected community that celebrates the diversity
of its people as well as its economic and cultural
assets that are supportive of its residents and
businesses. Its history is important and bolsters its
significance as the Southern Gateway into the City
of San José.
STRATEGIC DIRECTIONS
Building from the vision exercise, the Working
Group developed three strategic directions:
• Promote Economic Vitality – The Monterey Corridor contains light- and heavy-in- dustrial land, supporting opportunities for businesses. A growing sports-and-rec- reation sector could develop into a full-blown tourism district which would help to spur additional economic activity.
• Catalyze Development Opportunities – Continued investment in new construction and renovation of existing facilities can support the area’s economic viability. • Promote Livability and Sense of Place – While the Monterey Corridor’s history is rich in industrial uses and as an important thoroughfare, it is also a community of existing engaged residents and businesses. To retain and support these existing resources, improving the overall quality of life will enhance the corridor’s identity and sense of place and attract new residents and businesses.
MONTEREY CORRIDOR WORKING GROUP REPORT
19 5. PROGRESS DURING THE PANDEMIC
While the Working Group met on March 5, 2020, later that month the COVID-19 pandemic redirected agency partners and City staff priorities to managing emergency relief programs for San José’s most vulnerable. While Working Group meetings were paused until March 2022, City staff juggled emergency response efforts while still making prog- ress on Monterey Corridor programs and projects. The following is a list of accomplish- ments during this time:
• OEDCA brought on a new Monterey Corridor
Business Manager to support the formalization
of a business association and targeted outreach
efforts.
• VTA created the 568 rapid route and completed
a route consolidation.
• Council District 7 and OEDCA launched a gate -
way branding banner campaign in 2021, with 80
banners spanning the length of the Monterey
Corridor.
• OEDCA continued engaging with developers and
property owners to discuss opportunity sites.
• The City pursued a Priority Production Area designation through the Bay Area Metro- politan Transportation Commission and intends to explore potential grant programs. • A Monterey Corridor website is currently under development that implements some of the branding and information concepts developed by the Working Group. • Citywide Planning prepared the Caltrain Station Area plan, using input from its May 2022 community workshop to inform the development of the Station Area Plan. • BeautifySJ expanded staffing to address beautification efforts citywide and at the Monterey Corridor.
• BeautifySJ successfully negotiated an agreement to introduce beautification efforts within UPRR property along the corridor.
• The High-Speed Rail Authority approved the environmental impact report and impact statement.
• DOT received funding to design environmentally clear grade separations over the next several years.
• San José State University, Sharks Ice, and Santa Clara County Fairgrounds made significant investments to improve facilities.
MONTEREY CORRIDOR WORKING GROUP REPORT
20 6. RECOMMENDATIONS BY STRATEGIC DIRECTION
In February 2022, Monterey Corridor Working Group meetings resumed virtually. After reviewing the established framework and progress made, working group members discussed the next steps including proposing a set of recommendations that guide continued progress along the Monterey Corridor. Below are the three strategic directions that guide the working group’s next steps and recommendations:
PROMOTE ECONOMIC VITALITY
The Monterey Corridor’s confluence of major transportation projects, central location, and ample commercial and industrial land uses to make it attractive for businesses.
These key assets have the potential to spur the region’s economic activity. As one of the remaining areas of light- and heavy-industrial land the Silicon Valley, the Monterey Corri- dor provides a home for businesses that produce vital supplies, products, and services.
It is important to attract new businesses and sustain existing businesses to retain and create more jobs for residents. Additionally, emerging sports and recreation investments create new opportunities to catalyze economic activity.
Based on the existing conditions analysis and discussions, the Working Group identified the following takeaways:
• Preservation of industrial land uses is critical; these uses are essential to the economy. • Industrial and commercial land use designations are critical to providing living-wage jobs to Monterey Corridor and city residents, especially for those who are econom- ically challenged and/or do not have advanced education credentials required for the high-tech area labor market.
• Industrial businesses provide higher concentrations of employment and drive new development because of their complex supply chains.
• The City’s business-support tools have evolved, from direct financial assistance historically funded by Redevelopment
• Agency dollars to strategic outreach, policy development, and partnerships. • Opportunities for placemaking should be explored. The current, planned, and poten- tial investment in sports and recreation facilities by San José State University (SJSU), the City/Sharks Ice, and the Santa Clara County Fairgrounds, create intriguing oppor- tunities for a regional sports destination. Complementary uses, such as hotels and additional food and drink venues, could be attracted to the area. • Economic vitality should be advanced with attention toward preventing business and residential displacement.
• The current Monterey Corridor Business Association provides an opportunity to better engage businesses and stakeholders in solutions.
• The area’s image can and should be improved through strategic marketing efforts paired with concrete improvements in on-the-ground conditions.
MONTEREY CORRIDOR WORKING GROUP REPORT
21 To further advance this strategic direction and meet the corridor’s vision, the Working Group decided on the following recommendations:
CATALYZE DEVELOPMENT OPPORTUNITIES
Much of the Monterey Corridor’s built environment was constructed between the 1960s and 1970s. Many of these buildings are functional for current and future industries despite their vintage. However, the area can benefit from modernization. Continued investment in new construction and renovation can support the area’s economic viability while enhancing City revenues. While there are several new or planned industrial, commercial, and hospitality projects, new development faces several challenges in this area. In some parts of the corridor, parcel sizes are quite small, meaning significant projects need to assemble properties, which can be a long and complicated process. Infrastructure and environmental remediation needs may be significant.
Strategic
Direction Recommendation Estimated
Start Date
Estimated
End Date Lead
Promote
Economic
Vitality
Increase business engagement
through additional retention
visits and follow-up
Fall 2022
Contract ends
April 2023/budget
required to extend
OEDCA Consultant
Strategically promote grant
programs and resources such
as the Storefront Grant Program
Summer 2022 Ongoing OEDCA Business
Development Staff
Build the capacity of businesses
to create a business association Spring 2022 Spring 2023 OEDCA Consultant Support growing business
clusters such as sports and
recreation*
Ongoing Ongoing OEDCA Business
Development Staff
Foster retail opportunities* Ongoing Ongoing OEDCA Business Development Staff
Partner with the VTA on
its Community-Based
Transportation Plan
Spring 2022 Spring 2023 VTA/DOT
Design quick build
improvements to speed up
transit and improve safety
Ongoing Spring 2023 VTA/DOT
Actively preserve and promote
light and heavy industrial land
uses
Ongoing Ongoing OEDCA Business
Development Staff
*Additional funding is required if focused and proactive implementation is desired.
Note: Estimated Start and End Times are subject to change based on the availability of resources.
Table 2. Promote Economic Vitality Recommendations
MONTEREY CORRIDOR WORKING GROUP REPORT
22 Based on the current conditions and group member discussions, Working Group findings include the following:
• The Monterey Corridor has a strong economic base and is an integral part of the San José economy. It contributes significant sales tax dollars and supports more than 20,000 jobs, particularly in middle-skilled occupations. • Existing land use designations support the strong economic environment in the Corridor.
• Vacant and underutilized lands within the study area can be redeveloped with higher intensity and job-producing uses consistent with the Envision 2040 General Plan. • Staff and the working group studied several sites, including more than a dozen mid-century motels that line the corridor. Some of these properties are currently or may soon become available for sale and can potentially be redeveloped consistent with the City’s Envision 2040 General Plan.
• The Working Group proposed exploring densification opportunities as part of the corridor revitalization, such as allowing housing development in locations zoned for residential use without compromising industrial land uses. • The Corridor’s concentration of combined industrial/commercial zoning and general plan designations are positive assets as they provide flexibility for both uses within existing buildings and new construction.
• The Corridor is a major transportation thoroughfare. Safety issues can be addressed through coordinated transportation infrastructure enhancements and public educa- tion.
• Grade separation is necessary for rail improvements in the area to enhance safety. • Planning for the future of the Monterey Corridor should be holistic, by considering all components that connect a community. This includes considering culture, trans- portation needs, new development opportunities, and walkable streets. • Development should be strategic and encouraged.
• Urban Village designations offer residential and commercial densification oppor- tunities.
• An Opportunity Zone census tract is located within the Monterey Business Corridor, which could incentivize investment within this growth area. • Redevelopment potentially offers an opportunity to deal with problematic proper- ties, but re-tenanting existing facilities with new, quality businesses can also move the needle.
MONTEREY CORRIDOR WORKING GROUP REPORT
23 Strategic
Direction Recommendation Estimated
Start Date
Estimated
End Date Lead
Catalyze
Development
Opportunities
Promote and attract potential
investors and job-producing
opportunities to vacant/
underutilized development
sites*
Ongoing Ongoing OEDCA Business
Development Staff
Continue to promote the
Monterey Corridor’s unique
Opportunity Zone
Fall 2022 Ongoing through
2026
OEDCA Business
Development Staff
Complete Capitol Station Area
Plan and Submit to City Council
for Action
March 2022 June 2023 PBCE
Citywide Planning
*Additional funding is required if focused and proactive implementation is desired.
Note: Estimated Start and End Times are subject to change based on the availability of resources.
Table 3. Catalyze Development Opportunities Recommendations To further advance this strategic direction of Catalyze Development Opportunities and meet the Corridor’s vision, the following opportunities will be pursued:
PROMOTE LIVABILITY AND SENSE OF PLACE
Given its diverse land uses and auto-centered history, the Monterey Corridor does not have much of an existing sense of place or defined identity. Traditionally, the Corridor supports light and industrial businesses, mixed in with residential areas, strip centers, and some large retail centers. Due to its history as a corridor for transporting goods and people, the wide roadway and industrial elements of the Corridor are fitting for businesses and efficient transport. Thus, this strategic direction of promoting livability and a sense of place will direct programs and projects supportive of placemaking. Based on current conditions and discussions, the working group made the following findings:
• There is only one Monterey Corridor in the City; it has core assets that must be preserved and strengthened.
• The Monterey Corridor’s residents, business owners, and visitors are diverse; diversity must be preserved.
• Innovative solutions must be explored to solve encampment issues. • Innovative solutions must be pursued to solve blight issues along the corridor. • Four district communities were designated using a beautification approach: Monte- rey Road South (Blossom Hill to Skyway), Monterey Road Central (Skyway to Tully Road), Monterey Road North (Fairgrounds to Alma), and Industrial Business Zone.
To further advance this strategic direction and move the Corridor towards its vision, the following opportunities will be pursued to Promote Livability and a Sense of Place:
MONTEREY CORRIDOR WORKING GROUP REPORT
24 Strategic
Direction Recommendation Estimated
Start Date
Estimated
End Date Lead
Promote
Livability and
Sense of Place
Engage the neighborhood and
business community to support
blight reduction efforts
Winter 2023 Summer 2023 PRNS/BeautifySJ
Proactively seek funding
for tree planting and street
improvements for the public
right-of-way
Unfunded Unfunded DOT
Complete the planning,
design, and environmental
clearance for grade separations
of Skyway, Branham, and
Chynoweth Avenues
Fall 2022 Winter 2024 DOT
Participate and advocate for the
prioritization of public art when
the High-Speed Rail Corridor
Planning committee resumes
Unknown/
Dependent on
HSR
Unknown/
Dependent on
HSR
OEDCA/Cultural
Affairs Staff
Use existing communications
channels to educate the
community about positive
changes along the corridor*
Partially funded/
Ongoing
Partially funded/
Ongoing
PRNS/BeautifySJ,
Monterey Corridor
Website, all
departments as
appropriate
Explore opportunities to
enhance the corridor’s sense of
place (i.e., murals, wayfinding,
etc.)
Partially funded/
Ongoing
Partially funded/
Ongoing
Council Offices/
OEDCA Cultural
Affairs
*Additional funding is required if focused and proactive implementation is desired.
Note: Estimated Start and End Times are subject to change based on the availability of resources.
Table 4. Promote Livability and Sense of Place Recommendations
MONTEREY CORRIDOR WORKING GROUP REPORT
25 7. IMPLEMENTATION
Under the three strategic directions, City departments and partners are making prog- ress toward meeting the vision and goals of the Monterey Corridor Working Group. For example, OEDCA brought on a business manager to drive the marketing and outreach efforts for the Monterey Corridor business community. Additionally, OEDCA is launching a website that incorporates the “Southern Gateway” branding for the Corridor. While economic development efforts proceeded, PBCE Citywide Planning Division initiated the Caltrain Station Area Plan and has begun engaging residents and stakeholders. The Plan will be a framework for a mixed-used development with strategies for beautifica- tion, with the overall goal of providing high-quality environments for public circulation and gathering. BeautifySJ reached an important milestone by entering into a long-term agreement with UPRR to address blight issues along the Corridor. The VTA, meanwhile, began service on its new rapid service; High-Speed Rail certified the Environmental Impact Report for construction; and DOT has obtained funding to design and environ- mental clear grade separations at Skyway, Branham, and Chynoweth Avenues. Invest- ments by SJSU, Sharks Ice, and the Santa Clara County Fairgrounds further progressed.
In essence, these projects will ultimately drive investment and interest. There is a chance for the City of San José to influence policy and ensure that the design and implemen- tation of these major projects benefit the residents and users of the Monterey Corridor.
MONTEREY CORRIDOR WORKING GROUP REPORT
26 8. MONTEREY CORRIDOR WORKING
GROUP MEMBERSHIP
The Monterey Corridor Working Group met from May 2019 through March 2020 and reconvened from March 2022 to June 2022. The development of this report would not be possible without the active participation of the following individuals:
WORKING GROUP MEMBERSHIP
• Maya Esparza, Councilmember, District 7
• Sergio Jimenez, Councilmember, District 2
• District 7 Resident: Mulissa Willette
• District 2 Resident: Russell Failing
• Local Business Representative: Jim Zubillaga,
Coastal Lumber
• Local Business Representative: Erik Schoennauer,
Granite Rock
• HomeFirst Representative: Rene Ramirez
• Mechanical, Electrical, Plumbing & Fire Sprinkler
Union Representative: Jean Cohen/Will Smith
• Monterey Corridor Business Association: Jill
Rodby
• Santa Clara County Fairgrounds: Abe Andrade
• Silicon Valley Leadership Group Representative:
Jason Baker/Kristen Brown
• The Plant Management Representative: Lisa
Weiss
• VTA: Aaron Quigley
CITY OF SAN JOSÉ STAFF
• City Manager’s Office: Rosalynn Hughey, Deputy
City Manager; Angel Rios, Deputy City Manager;
Jim Ortbal, former Deputy City Manager; Kim
Walesh, former Deputy City Manager; Sarah
Zarate, Director of Administration, Policy, and
Intergovernmental Affairs; Nora Chin, Assistant to
the City Manager
• Office of Economic Development and Cultural
Affairs: Nanci Klein, Director; Blage Zelalich,
Deputy Director; Nathan Donato-Weinstein, Busi-
ness Development Officer; Bige Yilmaz, Economic
Data Analyst
• Housing Department: Jacky Morales-Ferrand,
Director; Ragan Henninger, Deputy Director
• Department of Parks, Recreation and Neigh -
borhood Services: Jon Cicirelli, Director; Andrea
Flores Shelton, Deputy Director; Olympia Williams,
Division Manager (BeautifySJ)
• Department of Planning, Building, and Code
Enforcement: Chris Burton, Director; Michael Bril-
liot, Deputy Director; Jared Hart, former Division
Manager; Charla Gomez, Supervising Planner;
Matthew Benjamin, Planner
• Department of Transportation: John Ristow, Direc-
tor; Jessica Zenk, Deputy Director; Brian Stanke,
Senior Transportation Specialist