City Council Items 8.4 & 8.5
June 6, 2023
Omar Passons
Deputy City Manager, Office of the City Manager
Jacky Morales-Ferrand
Director, Housing
Jim Ortbal
Special Projects Lead, Office of the City Manager
Kevin Ice
Assistant to the City Manager, Office of Economic Development Supportive Parking and Emergency Interim
Housing System Expansion & 1300 Berryessa Rd
Lease Agreement
Big Picture- Urgent Supportive Help
Mayor and Council direction for Interim Housing and Other Solutions All districts
Testing new approaches – helping decrease unsheltered homelessness Part of the Continuum – Effort continues on Prevention and Permanent Housing Actions informed by unhoused people
All hands, all focus, all urgent attention
Planning, Public Works, Housing, SJ Police, SJ Fire, Economic Development, PRNS, DOT, CMO, etc.
Environmental review, real estate analysis, site design, unhoused engagement and program design, fire & community safety on site, right-of-way management, beautification, waste services, etc. Intense, ongoing, thoughtful work
2 Scope of Need
3 6,05
5 4,411
Unsheltered
1,929
Sheltered
6,340
Individuals
Experiencing
Homelessness in
San José
2023 San Jose Point in Time Count
Background – Scope of Need
4 6,05
5 400+
There are at least
400 lived in RVs in San
José
Source: 2023 Internal Partial Assessment – City of San Jose What are Emergency Interim Housing Communities?
Goals are:
(1) to give people quality shelter out of encampments; (2) transition people into permanent housing
Provides participants with private rooms with shared kitchens and laundry facilities Participants have access to services (case management, medical and mental health referrals, job placement assistance)
5 Success of Emergency Interim Housing
1,038
Individuals
Exited
Exited to
Permanent
Housing
Exited to
Temporary
Housing
No
Information/Don't
Know/Other
Returned to
Homelessness
50%
19%
Data Timeframe:
January 2020 – June 2023
Sites: Evans Ln, Felipe, Mabury,
Bernal, Rue Ferrari
69% exited to a
successful destination
22%
9%
6 1,395 Total Individuals Served as of June 1, 2023
What is Safe Parking?
Managed 24/7 by a social service provider
– Site control: access by referral only
Access to basic needs & social services
Safe, secure place to park off-street temporarily
– Good neighbor policy & quiet hours (10 pm- 7 am)
7 • Existing emergency shelter
inventory primarily in City Center
• Recent and planned expansions
increase equitable distribution &
access across the City
*Source: 2021 Housing Inventory Count,
data as of November 2022
A Citywide Approach –
Emergency Housing
System
Map of Emergency Shelter, Group Shelter
Transitional Beds (includes EIH/BHC)*
8 A Citywide Approach – Emergency Housing System
9 District 3, 920,
32%
District 6, 708,
25%
District 2, 560,
19%
District 7, 496,
17%
District 5, 128, 4%
District 10, 61, 2%
District 8, 20, 1% District 9, 6, 0% District 1, 0, 0%
District 4, 0, 0%
Distribution of Emergency Shelter* Beds
by City Council District
• *Shelter includes Emergency Shelter, Group Shelter, Transitional Beds, EIH/BHC, Supportive Parking, Hotel/Motel Conversions
• Data Timeframe- As of June 2023, includes sites that are completed, under construction and in design
• Dataset may not include new county-run emergency shelter opened after January 2023
~74% of completed, under
construction, and in-design
Emergency Shelter Beds are
in the City Center (Districts
3, 6, and 7)
District #, # Beds, % of Total Beds
City EIH, Hotel/Motel Conversions, & Safe Parking
System Expansion since 2020
Completed
628
• D2- Monterey/Bernal, EIH [78]
• D2- Rue Ferrari, EIH [118]
• D3- Mabury Rd, BHC [40] D3- Guadalupe [96]
• D3- Sure Stay Hotel, Hotel Conversion [76]
• D3- The Plaza, Hotel Conversion [43]
• D6- Evans Ln, EIH [121]
• D6- Casa De Novo, Hotel Conversion [56]
• D7- Felipe Ave, BHC [40]
Under Construction/In Development
475
• D3- Monterey & Branham [204]
• D3- Pavilion Inn, Hotel Conversion [43]
• D3- Pacific Motor Inn, Hotel Conversion [72]
• D6- Arena Hotel, Hotel Conversion [89]
• D10- VTA Santa Teresa Parking [42 RVs, 25 cars]
In Design
142
• D2- Rue Ferrari Expansion [142]
Recommended
Sites for Council
Approval
~351
• D4- Cerone [~104]
• D9- Cherry Avenue [~96]
• D2- Bernal and Hwy 101 [Backup Sites]
• D10- Via Del Oro [~75]
• D3- Berryessa Rd Parking [~76-85]
Total
1,596
Previous Council Approval,
Potential Alternate Sites
TBD
• D1- 85/Prospect [~40]
• D5- 680/Jackson [~60]
• D10- Cottle Rd [~100]
• D10- 85/Great Oaks [~100]
• D10- 85/Santa Teresa [~40] 10
Siting Safe Parking
“Berryessa Rd” site
Council District: 3
Location: 1300 North Berryessa Rd
Developable area: 6.325 Acres
Owner: Privately Owned
11 Recommendation: Pursue the 1300 Berryessa Road site for a Supportive Parking program for recreational vehicles (RVs) and cars San Jose Flea Market
1300 N
Berryessa Rd
12 Overview of Lease Terms
• Lease proposed at 6.325-acre site at 1300 Berryessa Road – Initial term of 122 months commencing June 30, 2023 and expiring August 31, 2033 • Includes two-month abated rent period
• 5-year option to extend at the end of the term, subject to subsequent Council approval – Total cost of lease without the 5-year option estimated at $18,911,427.49 • Lease starts at $0.39 per square foot, escalating 3.5% annually • Base rental cost totals $15,213,988.03
• Estimated operating (NNN) expenses of $3,697,439.46
– Lease allows for development of a project to support unhoused individuals • Adoption of CEQA addendum allows for Supportive Parking project • Any other use would require subsequent CEQA evaluation 13 Risks
• Lease remains contingent through July 31, 2023:
– An air quality health risk assessment is underway; results expected mid-June – Soil testing will commence upon lease execution
• City to break lease during contingency window if site is determined to be infeasible for intended use.
• Landlord to cover additional construction costs related to soil testing over $400,000.
Governor’s State Small Homes Initiative
Announced March 2023
State of California leading
and funding initiative to
identify sites, design and
deliver interim shelter
housing in select CA cities
Cerone and Cherry
Avenue are the priority
sites for this initiative
14 Rich Pedroncelli/AP Photo
Siting Emergency Interim Housing- State Small
Homes Initiative
“Cerone” site
Council District: 4
Location: Southeast corner of
Highway 237 and Zanker road
Developable area: approx. 17
acres (City need 2-3 acres)
Owner: Valley Transportation
Authority
15 Siting Emergency Interim Housing-
State Small Homes Initiative
“Cherry Avenue” site
Council District: 9
Location: Cherry Ave between the Almaden
Ranch Shopping Center and adjacent to the
Guadalupe River
Developable area: 2+ Acres
Owner: Valley Water
Recommendation: Pursue the Valley Water Cherry Avenue site for Emergency Interim Housing, including an adjacent Water Resources Protection Zone, while continuing to pursue other potential sites throughout the City
16 • Federally
protected
Water of the
U.S.
• State protected
Water of the
State
• Valley Water
permit-
required
mitigation
17 Water Resources Protection Zone
Guadalupe River (Blossom Hill Blvd to Branham Lane)
Siting Emergency Interim Housing
“Bernal/101 North & South” sites
Council District: 2
Location: South San Jose
Developable area: 3.9 Acres & 7.5 Acres
Owner: State of California (Caltrans)
Recommendation: Evaluate and pursue as a
back-up option the Bernal Road South at 101 On
Ramp and/or the Bernal Road North between
101 and 85 sites for the Governor’s State Small
Home Initiative
18 NORTH
SOUTH
Interim Housing - 5-Year Movable Homes Pilot
“Via Del Oro & San Ignacio” site
Council District: 10
Location: southeast corner of the intersection,
within the Edenvale Commercial Industrial area
Developable area: 2+ Acres
Owner: Privately Owned
Recommendation: Evaluate and pursue, if advantageous to the City, the Via Del Oro and San Ignacio Ave site for a philanthropic donation of leased land and buildings for Emergency Interim Housing;
19 City Council Items 8.4 & 8.5
June 6, 2023
Omar Passons
Deputy City Manager, Office of the City Manager
Jacky Morales-Ferrand
Director, Housing
Jim Ortbal
Special Projects Lead, Office of the City Manager
Kevin Ice
Assistant to the City Manager, Office of Economic Development Supportive Parking and Emergency Interim
Housing System Expansion & 1300 Berryessa Rd
Lease Agreement