June 20, 2024
Metropolitan Transportation Commission (MTC)
Bay Area Metro Center
375 Beale Street San Francisco, CA 9410
Dear Chairperson Pedroza and Commissioners,
The City of San José would like to thank MTC staff for recommending the allocation of $6.3 million in Regional Measure 3 funding to advance the integrated Diridon Station project. This funding will enable the integrated project to move forward with pre-environmental design and planning work. Further, equitable transitoriented communities are a critical part of San José’s and the Bay Area’s future. The City of San José is committed to the principles and aims of the Transit-Oriented Communities (TOC) Policy and appreciates the Commission’s role and responsibility to ensure quality transit investments.
Although not required to come into compliance until 2026, the City has already made significant progress toward meeting MTC’s TOC Policy requirements – especially with the Diridon Station Area Plan (DSAP, adopted May 2021) and Parking and Transportation Demand Management Ordinance (TDM, adopted December 2022). We acknowledge that there are other areas in which San José is not yet fully in compliance.
The City of San José commits to reviewing policies not yet in compliance with the TOC Policy as well as any necessary policy changes with our City Council and community at large, prior to 2026.
The purpose of this letter is to share existing policies applicable to the Diridon Station area and their alignment with MTC’s TOC Policy.1
The following summarizes MTC goals and existing alignment, with a more detailed analysis of progress towards compliance available in Attachments 1 and 2.
In summary, the City of San José has increased the planned housing supply, especially affordable housing, in the Diridon Station area. The DSAP plans for up to 12,900 new homes – with 25% affordable housing, higher than our citywide 15% inclusionary requirement. The DSAP also includes an Affordable Housing Implementation Plan, focused on the production and preservation of affordable housing, as well as the renter protection measures. The Affordable Housing Implementation Plan builds upon existing policies, programs, and strategies— including those in the adopted Citywide Residential Anti-Displacement Strategy and Housing Element. The DSAP affordable housing recommendations reflect more than two years of deep listening and dialogue with those in the community most affected by displacement and the lack of affordable housing.
The City also greatly increased the density of planned new commercial office development near Diridon Station. The DSAP allows for up to 13.7 million square feet (MSF) of new office, and another 1MSF of active use and retail space. This equates to space for an estimated 44,000 new jobs in the area directly around Diridon 1 The City has not yet completed a comprehensive review to compare all 54 San José stations against the recently-released draft Administrative Guidance (September 2023). City staff have compared the TOC Policy to our adopted plans and policies near the Diridon Station – particularly the Diridon Station Area Plan (DSAP, updated May 2021) – and citywide policy regarding housing, community stabilization, complete streets, parking, and transportation demand management.
Station. More than half (7.8MSF) of that development is part of Google’s entitled Downtown West project, and another 1.1MSF is proposed by Caltrain on sites directly across from Diridon Station.
The DSAP and Downtown Transportation Plan also prioritize bus transit, active transportation, and shared mobility, particularly to Equity Priority Communities. Special attention was given to connections in and out of the station area across Highway 87 and Interstate 280 considering the historic downtown core and neighborhoods to the east and south are equity priority communities. Projects in our adopted Capital Improvement Program include transit and pedestrian improvements to Santa Clara Street and bikeway priority improvements to San Fernando Street.
In December 2022, San José became the largest U.S. city to abolish nearly all parking minimums citywide.
Instead, developments are required to incorporate transportation demand management (TDM) measures – reducing housing and development costs, traffic, and greenhouse gas emissions. In the Diridon Station area, however, the City has a long-standing contractual agreement with the Sharks and SAP Center to ensure that parking is available for event patrons. To meet this legal obligation, the City retained relatively low commercial parking requirements in the Diridon Station area, with incentives for private developments to share their parking (at market rates) with the public. Additionally, the DSAP calls for a Parking and Transportation Management District to effectively manage parking and improve TDM resources.
Finally, the City shares MTC’s goal to support and build partnerships to create equitable transit-oriented communities. The redevelopment of Diridon Station is a partnership among the City, Caltrain, Valley Transportation Authority (VTA) and MTC with staff from all agencies advising the City on the DSAP and plans for the Station itself. Additionally, myriad partners – including the SAP Center, advocates , developers, and surrounding community and neighborhood associations – worked with the City to craft these plans. This includes a 38-member Station Area Advisory Group (SAAG) for the DSAP, as well as community-based organizations that partnered with the City to solicit diverse feedback over many years. These partnerships have laid the foundation for successful implementation of transit-oriented communities near Diridon Station.
Thank you for your commitment to equitable transit-oriented communities like those we are endeavoring to build in San José. Your support of $6.3 million in Regional Measure 3 funding will ensure we can move forward with the integrated Diridon Station project in a timely and cost-effective manner.
Sincerely,
Mayor Matt Mahan
City of San José
Attachment 1: Initial Summary of Compliance with MTC’s TOC Policy near Diridon Station Transit Oriented Communities (TOC) Policy Requirements Status Section 1: Density for New Residential & Commercial Office Development Minimum Zoning (Residential): Average of 100 units/net acre or higher Maximum Zoning (Residential): Average of at least 150 units/net acre Minimum Zoning (Commercial): Average of 4 Floor to Area Ration (FAR) or higher Maximum Zoning (Commercial): Average of 8 FAR or higher Section 2: Affordable Housing Production, Preservation, and Protection Policies and Commercial Stabilization Policies
At least two affordable housing production policies
At least two affordable housing preservation policies
At least two affordable housing protection and anti-displacement policies At least one commercial stabilization policy
Section 3: Parking Management
No minimum parking requirements
*Other than targeted exception to meet existing contractual obligation Parking maximum of 0.375 spaces per unit (residential) and 0.25 spaces per 1,000 sf (commercial) or lower
TDM Policy for New Development
Section 4: Station Access and Circulation
Complete Streets
Project Prioritization / Implementation
Access Gap Analysis
Mobility Hubs
Attachment 2: Details of Compliance with MTC’s TOC Policy near Diridon Station Diridon Station – Compliance towards Transit Oriented Communities Policy Status as of September 2023
Section 1: Density for New Residential & Commercial Office Development2 Required Status (September 2023)
Minimum
Zoning
(Residential):
Average of 100
units/net acre
or higher
Minimum density requirements would need to be raised (and/or imposed) to align with the TOC Policy.
Currently, the DSAP includes three residential land use designations within a ½ mile of the Station:
1. The majority is “Downtown”, a mixed-use designation without minimum residential density requirements to allow for a wide range of uses.
2. A sizable portion is “Transit Residential,” allowing for a minimum of 65 dwelling units (du)/acre.
3. A small portion is designated “Urban Residential” with a minimum of 30 du/acre.
Maximum
Zoning
(Residential):
Average of at
least 150
units/net acre
Maximum density requirements align with the new TOC Policy guidance:
1. “Downtown” allows for up to 800 dwelling units/acre or 30 FAR.
2. “Transit Residential” allows for up to 450 du/acre.
3. “Urban Residential” allows for up to 95 du/acre.
*The Diridon Station area is subject to height and land use restrictions related to the Norman Y. Mineta International Airport. In 2019, in anticipation of the DSAP update, the City increased height limits through a change to its “One Engine Inoperable” policy, which added millions of square feet of new development potential to the Diridon Area. Proximity to the Airport remains the most significant limit on density in the Diridon Station area. 2 Calculations in accordance with new (September) draft Administrative Guidance have yet to be completed, as significant technical work is required to complete those.
Minimum
Zoning
(Commercial):
Average of 4
Floor to Area
Ration (FAR)
or higher
Minimum density requirements would need to be raised (and/or imposed) to align with the TOC Policy.
Currently, the DSAP includes three commercial land use designations within a ½ mile of the Station (Downtown, Commercial Downtown, and Transit Employment Center); all are intended for intensive job growth, but none have minimum density requirements.
Maximum
Zoning
(Commercial):
Average of 8
FAR or higher
Maximum density requirements align with the new TOC Policy guidance:
1. “Downtown” allows for up to 30 FAR.
2. “Commercial Downtown” allows for up to 15 FAR.
3. “Transit Employment Center” allows for up to 12 FAR. *Per the above, proximity to the Airport limits achievable densities in some areas.
Section 2: Affordable Housing Production, Preservation, and Protection Policies and Commercial Stabilization Policies
At least two
affordable
housing
production
policies
Affordable Housing Production Policies
- Inclusionary Zoning (15% citywide)
- Affordable Housing Funding
o Commercial linkage fee
o Inclusionary in-lieu fee
o Measure E (voter-approved property transfer tax)
- Affordable Housing Overlay Zones (in adopted Housing Element) - Ministerial Approval (in adopted Housing Element)
At least two
affordable
housing
preservation
policies
Affordable Housing Preservation Policies
- Funding to Preserve Unsubsidized Affordable Housing
- Condominium Conversion Restrictions
- Public/Community Land Trusts
- Funding to Support Preservation Capacity
- Mobile Home Preservation (policy and funding for repair) At least two
affordable
housing
protection and
antidisplacement
policies
Affordable Housing Protection Policies
- Just Cause Eviction and Tenant Anti-Harassment Protections - No Net Loss and Right to Return to Demolished Homes (Ellis Act) - Legal Assistance for Tenants
- Emergency Rental Assistance Program
- Rent Stabilization
- Mobile Home Rent Stabilization
- Fair Housing Enforcement
At least one
commercial
stabilization
policy
Commercial Stabilization Policy
- Small business advocate office
Section 3: Parking Management
No minimum
parking
requirement
allowed
In December 2022, San José became the largest U.S. city to abolish nearly all parking minimums citywide.
- Instead, developments are required to reduce demand for driving through TDM – reducing housing and development costs, traffic, and greenhouse gas emissions. - TDM “credit” is provided to developments that unbundle and/or share parking to incentivize those parking management strategies.
- In the Diridon Station area, however, the City has a long-standing contractual agreement with the Sharks and SAP Center to ensure that parking is available for event patrons. To meet this legal obligation, the City retained relatively low commercial parking requirements (1 parking space per 1,000 sf), with incentives for private developments to share their parking (at market prices) with the public. - Additionally, the DSAP called for a Parking and Transportation Management District to effectively manage parking and improve TDM resources.
- This combination of policies minimizes the total amount of parking to be provided in the Diridon Station area, while meeting the City’s contractual obligation.
Parking
maximum of
0.375 spaces
per unit
(residential)
and 0.25 spaces
per 1,000 sf
(commercial)
or lower
Based on community engagement and stakeholder feedback, the City did not adopt parking maximums in the 2022 Parking and TDM Ordinance. Instead, the City incentivizes lower parking ratios by providing TDM “credit” to developments with smaller amounts of parking proposed (referred to as a “soft maximum”).
TDM Policy for
New
Development
The City’s 2022 Parking and TDM Ordinance requires the provision and enforcement of transportation demand management for new developments.
Section 4: Station Access and Circulation
Complete
Streets
The City of San José adopted Complete Street Standards and Guidelines in 2018 (https://www.sanjoseca.gov/home/showpublisheddocument/33113/636771160514830000).
Project
Prioritization /
Implementation
The City recently completed the following CIP projects near Diridon Station:
- Safe Pathways to Diridon Station
- Park Avenue Multimodal/Green Streets
- St. John Street Multimodal/Bikeway
- The Alameda Beautiful Way; and
- Quick-Build Downtown Bikeways.
The following CIP projects near Diridon Station are currently underway:
- San Fernando Better Bikeway (ATP and locally-funded)
- Santa Clara Street Transit/Pedestrian Priority (planning project, locally funded) and - “Hardening” Quick-Build Downtown Bikeways (MTC Quick-Strike funded).
Access Gap
Analysis
The Diridon Station Area Plan (DSAP, adopted 2021) can be accessed at https://www.sanjoseca.gov/home/showpublisheddocument/74711/637596294579770000; the Mobility Chapter is pages 118-163.
- The Downtown Transportation Plan (adopted 2022) further expands the geography of the DSAP, including to many nearby Equity Priority Communities; it can be accessed at https://www.sanjoseca.gov/your-government/departments-offices/transportation/projectsplanning/downtown-transportation-plan.
Mobility Hubs The Downtown Transportation Plan includes Mobility Hubs as a strategy and plans specific locations within the Downtown and Diridon areas. (See pages 103-105, https://www.sanjoseca.gov/your-government/departmentsoffices/transportation/projects-planning/downtown-transportation-plan)