COUNCIL AGENDA : 11/5/2024
FILE : 24-2191
ITEM : 8.4
TO: HONORABLE MAYOR AND FROM: Toni J. Taber, CMC
CITY COUNCIL City Clerk
SUBJECT: SEE BELOW DATE: November 5, 2024
SUBJECT: San José Innovative Project Pathway Program
Recommendation
As recommended by the Rules and Open Government Committee on October 30, 2024, create the San José Innovative Project Pathway Program (Pathway Program) to streamline the approval of development projects that provide an extraordinary benefit to the City of San José. The Pathway Program will provide a clear policy route for securing approval of innovative investment projects. The Pathway Program will:
(a) Accept project applications that meaningfully advance city goals and require amendments to general plan text, zoning code allowed uses, or development standards or regulations. (b) Establish objective criteria for evaluating Pathway Program applications, ensuring alignment with city goals such as the city’s fiscal health, job creation potential, housing production, and sustainability.
(c) Delineate a clear submission process and minimum criteria for applicants, including required documentation and fees.
(d) Restrict the initial geographical scope of this new program to the boundaries of the Downtown Growth Area.
(e) Establish an early consideration review process at City Council for Pathway Program applications that meet pre-established criteria, enabling the Council to provide clear, timely direction to staff on whether to proceed with processing the application further.
CEQA: Not a Project, File No. PP17-008, General Procedure and Policy Making resulting in no changes to the physical environment. (Mayor, Davis & Foley) [Rules Committee referral 10/30/2024 - Item C.1]
RULES COMMITTEE: 10/30/2024
ITEM: C.1
TO: RULES AND OPEN
GOVERNMENT
COMMITTEE
FROM: Mayor Matt Mahan
Councilmember Dev Davis
Councilmember Pam Foley
SUBJECT: San Jose Innovative Project
Pathway Program
DATE: 10/24/2024
APPROVED: Date:
RECOMMENDATION
1. Create the San Jose Innovative Project Pathway Program (Pathway Program) to streamline the approval of development projects that provide an extraordinary benefit to the City of San Jose. The Pathway Program will provide a clear policy route for securing approval of innovative investment projects. The Pathway Program will:
a. Accept project applications that meaningfully advance city goals and require amendments to general plan text, zoning code allowed uses, or development standards or regulations.
b. Establish objective criteria for evaluating Pathway Program applications, ensuring alignment with city goals such as the city’s fiscal health, job creation potential, housing production, and sustainability.
c. Delineate a clear submission process and minimum criteria for applicants, including required documentation and fees.
d. Restrict the initial geographical scope of this new program to the boundaries of the Downtown Growth Area.
e. Establish an early consideration review process at City Council for Pathway Program applications that meet pre-established criteria, enabling the Council to provide clear, timely direction to staff on whether to proceed with processing the application further.
10/24/2024
HONORABLE MAYOR AND CITY COUNCIL
10/22/2024
Subject:
ANALYSIS
San Jose, at the heart of Silicon Valley, thrives on innovation. Yet, visionary developers often face barriers — not from a lack of ideas, but from the absence of a clear policy allowing their projects to seek approval. If a project promises exceptional benefits to the city but faces obstacles in moving forward, San Jose should actively step in to clear the path and ensure its success.
Innovation is in our DNA, and land use governance must reflect that by offering a more accessible, flexible, and dynamic approach.
This past year, San Jose faced a significant budget deficit over $50 million, which was closed under careful fiscal management. However, future budget outlooks appear difficult, with early estimates suggesting more challenges ahead. We should embrace efforts to boost economic growth and minimize fiscal burdens now. In fact, developers are poised to submit project proposals as soon as applications for this program opens. They recognize the opportunity to align their initiatives with our city’s goals and contribute to San Jose’s growth.
If a project fits certain minimum criteria, brings meaningful investment, moves us closer to meeting climate goals, or builds large quantities of new housing, let’s find out how to make it work for everyone. We've taken positive steps approving the high-rise fee waiver program and downtown leasing incentives, attracting more investment interest into the heart of San Jose. But we cannot stop there. Let’s empower builders to bring fresh ideas that bring real community benefits. To achieve this, we need a process that welcomes and supports those ideas from the start.
To ensure this new policy doesn’t overburden staff, we should establish a checkpoint with the City Council to review and evaluate proposals and set a high standard for accessing the Pathway Program. This elevates only the most promising ideas and offers early feedback to applicants.
The City Council should carefully assess the benefits of advancing certain projects by considering our limited resources alongside their potential to drive fiscal growth, sustainability, housing solutions, and job creation.
This process supports an economic strategy of becoming more market-responsive and adaptable.
By enabling developers and businesses to propose policy changes, we encourage a more flexible approach to our city’s growth.