TO: HONORABLE MAYOR FROM: Rosalynn Hughey
AND CITY COUNCIL
SUBJECT: MONTEREY CORRIDOR WORKING DATE : April 5, 2023
GROUP REPORT UPDATE
Approved Date
4/13/23
RECOMMENDATION
Accept the progress report on the Monterey Corridor Working Group Report Implementation.
SUMMARY AND OUTCOME
The Monterey Corridor Working Group Report is a culmination of an extensive study focusing on ongoing issues and opportunities along the corridor including the High-Speed Rail alignment, the impact of additional Caltrain service, potential land use changes through a station area plan that might enable greater densification, redevelopment opportunities, beautification, and homeless services. City staff, transportation agencies, and other partners continue to collaborate and implement the Monterey Corridor Working Group Report recommendations. (See Attachment for Working Group recommendations.)
BACKGROUND
At the January 10, 2019, City Council meeting,
1 City Council approved former Mayor
Liccardo’s recommendation to create the Monterey Corridor Working Group (Working Group) and appoint former Councilmember Maya Esparza and Councilmember Sergio Jimenez to lead the Working Group.
The Working Group was tasked with preparing 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.
The Working Group membership included a Council District 2 resident, a Council District 7 resident, and a representative from the following organizations: Monterey Corridor Business Association, HomeFirst, Coastal Lumber, Graniterock, Silicon Valley Leadership Group, The Plant retail center property management, United Association Journeymen Local 393, Santa Clara
1 https://sanjose.legistar.com/View.ashx?M=F&ID=6975471&GUID=25C64889-348D-45E2-B272-A523E97384B9 COUNCIL AGENDA: 4/25/23
FILE: 23-574
ITEM: 2.8
HONORABLE MAYOR AND CITY COUNCIL
April 5, 2023
Subject: Monterey Corridor Working Group Update
County Fairgrounds, and the Santa Clara Valley Transportation Authority. City partners include the City Manager’s Office (CMO), the Office of Economic Development and Cultural Affairs (OEDCA), the Department of Planning, Building and Code Enforcement (PBCE), the Department of Transportation (DOT), and the Department of Parks, Recreation, and Neighborhood Services (PRNS).
The Working Group embarked on this effort in May 2019 and through an extensive process, evaluated the existing conditions of the Monterey Corridor and collaborated on the development of a vision and three strategic directions that shape opportunities, investments, and solutions.
These three strategic directions include promoting economic vitality, catalyzing development opportunities, and promoting livability and a sense of place. The Working Group prepared a report outlining its process, goals, and recommendations to enhance the corridor for its residents and businesses.
At the September 20, 2022, City Council meeting,
2 staff, and three Working Group members
presented the Monterey Corridor Working Group Report. City Council accepted the report and directed staff to return in six months with an update on the progress of implementing the report recommendations.
ANALYSIS
Staff and partners have made significant progress on the report recommendations from September 2022 to March 2023. The three strategic directions guide the implementation of the recommendations. The following is a progress report on activities completed and currently underway; they are grouped by the three strategic directions:
Promote Economic Vitality
• OEDCA, working with consultant Community Strong Strategies, has been working to transition the informal Monterey Corridor Business Association to a formal entity.
Documentation was submitted in early 2023 to establish the nonprofit entity. The Monterey Corridor Business Association, which meets monthly, now has a formal board and established bylaws. Previously, in October 2022, the Monterey Corridor Business Association held a mixer and business walk to promote business involvement. Currently, the consultant is finalizing a marketing plan to promote the Monterey Corridor as a destination business district and highlight investment opportunities. The final marketing plan is expected to be submitted to OEDCA in April 2023. • OEDCA is developing a Monterey Corridor business-to-business oriented website to share information on the Working Group report, business success stories, and progress toward shared community goals. Once the website is completed, website administration will transition to the Monterey Corridor Business Association.
2 https://sanjose.legistar.com/View.ashx?M=F&ID=11241702&GUID=7A6B4497-7CC7-4817-A104-281A461BE72A
HONORABLE MAYOR AND CITY COUNCIL
April 5, 2023
Subject: Monterey Corridor Working Group Update
• OEDCA continues to facilitate the business attraction, retention, and expansion Citywide and within the Monterey Corridor. While the industrial market remains tight, there remain key opportunities for retail expansion on the corridor, including the former Toys “R” Us and Babies “R” Us spaces at The Plant retail center; and 30,000 square feet at the former Walmart at 5502 Monterey Road. Community Strong Strategies will submit a plan to OEDCA in spring 2023 that will provide additional tools to enhance marketing and investment attraction.
• The Monterey Corridor remains one of the few remaining true manufacturing hubs in the core of Silicon Valley. Over the last six months, several new companies have signed leases to occupy production space in the district, including Meadows Manufacturing, All Fab Precision Sheetmetal, and Future Packaging Group. OEDCA and the nonprofit Manufacture: San Jose have been working to better connect this community to local resources, most recently hosting a manufacturing roundtable lunch in March at Just Breakfast.
• Santa Clara Valley Transportation Authority (VTA) accepted public comments on the Monterey Corridor Community-based Transportation Plan from July 2022 to December 2022; VTA is currently developing a draft plan in collaboration with the City and will conduct the next round of outreach in summer 2023. The majority of the proposed projects in the draft plan are City projects, and VTA and City staff are coordinating on prioritization.
Catalyze Development Opportunities
• Since the first Capitol Station Area Plan community workshop in May 2022, the Planning staff and the consultant team have developed preliminary land use plans and conducted a real estate market analysis. The second community workshop was put on hold while a new project manager was onboarded to fill a vacant position. The second community workshop is currently being designed and anticipated to be conducted in late spring or summer 2023.
• Several development projects along the Monterey Corridor are moving forward or have recently been completed. They include:
BD Biosciences is completing tenant improvements to occupy a new 90,000- square-foot industrial building at 86 Montecito Vista.
The owner of the Casa Linda Motel at 1669 Monterey Highway has submitted plans to the City to redevelop the 1950s-era property into a modern, 120-unit hotel.
Graniterock is moving forward with plans to modernize its longtime home near the intersection of Monterey Road and Capitol Expressway. The development project is currently scheduled to be considered by the City Council at its April 11, 2023 meeting.
Sports and recreation proposals continue to gain steam. This includes a proposed revamp of the Jose State University South Campus athletic facility; a proposed cricket pitch and new soccer fields at the Santa Clara County Fairgrounds, and the recently completed expansion of the Sharks Ice facility. These current and
HONORABLE MAYOR AND CITY COUNCIL
April 5, 2023
Subject: Monterey Corridor Working Group Update
planned additions are expected to boost hotel occupancy in and around the Monterey Corridor.
Promote Livability and a Sense of Place
• In October 2022, San José State University received $9 million in State funding for the Speed City Legacy Project, envisioned as a joint-use project with the County of Santa Clara that includes a track and field facility and legacy center (in honor of track and field Olympians Tommie Smith and John Carlos) located at the County Fairgrounds. The total project cost is estimated at $25 million.
• Because of the concentration of crashes, injuries, and fatalities along the Monterey Corridor, Monterey Highway is identified as one of the City’s Vision Zero corridors.
DOT has been developing and implementing safety projects along the corridor to address safety. DOT is currently developing a Pedestrian Safety Plan which includes developing Monterey Corridor Safety improvements. To date, completed projects include a $70,000 median safety fence from Curtner Avenue to the railroad tracks and at Valleyhaven Way, as well as a license plate recognition system at Monterey Highway and Curtner Avenue. • In February 2023, DOT was awarded a $2 million planning grant from the federal Infrastructure Investment and Jobs Act (IIJA). The grant will be used to plan the long- term conversion of Monterey Highway from a motor highway to a grand boulevard, enjoyable and safe for all road users. The transportation planning project will undertake planning, design, conceptual engineering, and environmental review to reconstruct the road and intersections as a complete street.
• In late February 2023, BeautifySJ outreached to six neighborhoods including the residents, property owners, and business owners along the Monterey Corridor about blight reduction and graffiti removal efforts. BeautifySJ staff anticipate completing outreach within the next 30-45 days.
• DOT in partnership with Our City Forest began the installation of 160 trees in the Monterey Highway median between Ford Road and Tennant Avenue. The plantings and three-year establishment care are funded via previously collected developer-in-lieu fees (approximately $112,000) for tree planting. Planting began in March 2023 and will conclude in mid-April 2023. Additionally, DOT’s planting contractor will install an additional 200 trees for planting with three-year establishment care in vacant sites from Monterey Highway/Ford Road to First Street/Alma Avenue over a four-week period from March 15 to April 15, 2023. In total, 360 trees are being planted in the Monterey Highway median.
• On April 22, 2023, BeautifySJ will launch a new campaign, BSJ Proud. The launch of the campaign is aligned with Earth Day and the Great American Litter Pick-Up Day as well as clean-up events planned throughout the City. The campaign aims to prevent littering and dumping by educating people on a variety of tools including the displaying billboards along Monterey Highway on April 25, 2023, with VTA bus and social media advertisement to follow.
• DOT is working with the Federal Rail Authority on the design and environmental clearance of a structure to separate the rail line from the streets at Skyway Drive,
HONORABLE MAYOR AND CITY COUNCIL
April 5, 2023
Subject: Monterey Corridor Working Group Update
Branham Lane, and Chynoweth Avenue. DOT anticipates bringing the grant agreement with Federal Rail Authority as well as the contract for design and environmental service to City Council in summer 2023.
EVALUATION AND FOLLOW-UP
Following City Council’s acceptance of the six-month progress update, the Administration will continue implementing funded recommendations with available resources. As progress continues specific projects, staff will provide updates at City Council committees as appropriate.
PUBLIC OUTREACH
During the Working Group process, Working Group members held a total of 10 public meetings in person and virtually. Summaries and recordings of these meetings are available on the City’s website. Additionally, details about the public engagement process can be found in the report’s introduction chapter.
COST SUMMARY/IMPLICATIONS
Some of the report recommendations are ongoing and are a part of department work plans. Other recommendations require additional funding for a Monterey Corridor-specific effort that has not been identified. In addition, there remain some uncertainties related to the High-Speed Rail project which is under the authority of the California High-Speed Rail Authority. The Santa Clara County Fairgrounds is continuing its private development efforts. To realize the vision of the Monterey Corridor Working Group, City staff continues to apply for grants and will seek additional funding as appropriate through the City’s budget process.
COORDINATION
The Monterey Corridor Working Group Report was developed in coordination with Working Group members. The preparation of this memorandum has been coordinated with OEDCA; DOT; Department of Parks, Recreation and Neighborhood Services; Department of Planning, Building and Code Enforcement; and the City Attorney’s Office.
COMMISSION RECOMMENDATION AND INPUT
No commission recommendation or input is associated with this action.
HONORABLE MAYOR AND CITY COUNCIL
April 5, 2023
Subject: Monterey Corridor Working Group Update
CEQA
Not a Project, File No. PP17-008, General Procedure and Policy Making resulting in no changes to the physical environment.
PUBLIC SUBSIDY REPORTING
This item does not include a public subsidy as defined in section 53083 or 53083.1 of the California Government Code or the City’s Open Government Resolution.
/s/
ROSALYNN HUGHEY
Deputy City Manager
For questions, please contact Nora Chin, Assistant to the City Manager, at [email protected]
.
ATTACHMENT – Monterey Corridor Working Group Recommendations
1 Monterey Corridor Working Group Report Recommendations **Need additional funding to extend the contract
*Need additional funding
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
Attachment
2 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 ON HOLD PBCE
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
3 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/ Unknown/ OEDCA/Cultural
Affairs Staff
Use existing
communications channels to
educate the community
about positive changes in the
corridor*
Partially
Funded/
Partially
Funded/
PRNS/BeautifyS,
Monterey
Corridor Website,
all departments as
appropriate
Explore opportunities to
enhance the Corridor's Sense
of Place (i.e., banners,
murals, wayfinding)
Partially
Funded/
Partially
Funded/
Council
Offices/OEDCA
Cultural Affairs