Cities Index.
Presentation

San Jose City Council
September 18, 2025

Document
Presentation
Meeting
September 18, 2025
Body
San Jose City Council
Pages
78
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6.5 MB
Text extracted from the city's file for reading and search. Open the original on legistar.granicus.com. That file is the official record.

September 18, 2025
Chris Burton, Director
Manira Sandhir, Deputy Director
Ruth Cueto, Principal Planner
Jerad Ferguson, Principal Planner
Study Session
General Plan
and Land Use
General Plan 101
Pathway to Current General
Plan
Key Land Use Challenges
and Emerging Issues
Where We’re Headed
Review and Questions

01. 02.

03. 04.

05. Agenda

Page 2 ends

How did we get here?
What current
challenges do we face?
Where are we goingfrom here?

Page 3 ends

Objectives
General Plan 101 -
What it is and
how we use it

Page 01 ends

What is the General Plan?

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• City’s vision and blueprint for how we grow –
typical horizon 20-30 years
• State law requires 8 elements– land use,
circulation, housing, open space,
conservation, safety, noise, and
environmental justice
• The Housing Element is certified by state – 8-
year cycle
Study Session: General Plan and Land Use
How we use it?

Page 6 ends

GENERAL PLAN – Sets the Long-term Vision
and Goals, Policies, and Implementation
Actions
ZONING ORDINANCE – Implements the
General Plan through Codes, Standards, and
Procedures
Study Session: General Plan and Land Use
Process to Update/Amend

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• General Plan Amendments (GPA) - May be City-
Initiated or Privately Initiated
• Up to four hearings per year – one reserved for
privately-initiated GPAs
• Early Consideration Available for Projects
Fundamentally Inconsistent with General Plan
Policies
Study Session: General Plan and Land Use
General Plan Annual Report 23/24
Measure Annual Progress by Fiscal
Year
• Current Jobs to Employed
Resident Ratio 0.79 vs. Goal of 1.1
• 17.6 miles of new on-street bikeways,
upgraded 5.3 miles of existing on-
street bikeways
• REACH Code Updates and
Electrification Programs

Page 8 ends

Study Session: General Plan and Land Use
23-24 Annual Report
Commercial Building Permits - 698k
sq. ft. of new commercial built

Page 9 ends

Study Session: General Plan and Land Use

GP 2023/2024 Annual Report
Housing -
2,674 housing
units
permitted

Page 10 ends

Study Session: General Plan and Land Use

Study Session: General Plan and Land Use
Land Use Breakdown
Housing and Jobs
Get to Know Your City
Land Use Breakdown

13.60%

37.20%

49.20% Total Land Use
Employment Lands Residential Public/Open Space
Study Session: General Plan and Land Use
Pathway to the
Current General
Plan

Page 13 ends

By the years
1994
General Plan 2020,
Focus on the Future
Adopted
Focused Growth & VMT Shift,
Climate Smart, Housing
Production Spike, and
continued Tech growth

Page 14 ends

Envision San José 2040
General Plan Adopted
2011
Smart-Growth, Tech
Boom, Sprawl, and the
Great Recession
2018- 2025
Housing
Crisis, State
Intervention
2005-2010 2011-2018
Study Session: General Plan and Land Use
Focus on the Future
General Plan 2020
1994
Easier for Cars to
move
Discretionary
Alternative Use and
Industrial Conversions
Lower Housing
Densities

Page 01 ends

Easing traffic with more roads

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Study Session: General Plan and Land Use
"High”-Density

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Monte Vista Apartments, 29
DU/AC (144 units on 4.97-ac)
Cornerstone Japantown, 26.5
DU/AC (53 units on 2-ac)
Study Session: General Plan and Land Use
A Plan of Exceptions…

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Study Session: General Plan and Land Use

By the years
1994
General Plan 2020,
Focus on the Future
Adopted
Focused Growth & VMT Shift,
Climate Smart, Housing
Production Spike, and
continued Tech growth

Page 19 ends

Envision San José 2040
General Plan Adopted
2011
Smart-Growth, Tech
Boom, Sprawl, and the
Great Recession
2018- 2025
Housing
Crisis, State
Intervention
2005-2010 2011-2018
Study Session: General Plan and Land Use
Groundwork for the
next General Plan
2005-2010
Downtown
Strategy
North San Jose
Policy
Industrial Preservation
Framework
Great Recession
Green Vision
Evergreen and Coyote

Page 01 ends

Smart Growth Aspirations
Downtown Strategy Plan, 2005
• Support additional job and housing
growth within San José’s Greater
Downtown area.

North San Jose Policy Update, 2005
• Additional 26.7 million square feet of new
industrial development, 32,000 housing
units and 1.7 million square feet of
supporting commercial uses.

Page 21 ends

Study Session: General Plan and Land Use

Sprawl Pressures Continue
Coyote Valley Specific Plan
• Developer-led effort proposing a
minimum of 25,000 residential units and
50,000 jobs.
• Preservation of South Coyote Valley in a
perpetual non-urban state.
• Significant concerns raised regarding
financial and environmental impacts.
• No action by Council, deferred
consideration of land use changes to GP
2040 Update.

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Study Session: General Plan and Land Use
Sprawl Pressures Continue
Evergreen-East Hills
Vision Strategy
• Developer-led effort to add up to 5,700
residential units, 500,000-s.f. retail and
75,000-s.f. office.
• Proposal included conversion of campus
industrial land to residential.
• Commercial, retail, and 500 units allowed
to proceed; decision on residential
deferred to GP 2040 Update.

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Study Session: General Plan and Land Use
Shortsighted Spot Conversions

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Study Session: General Plan and Land Use

Refocus on Industrial Preservation
Industrial Preservation
Framework
• Guideline for evaluating
proposals to convert industrial
land for other uses.
• Goal was to keep land available
for businesses that provide jobs
for the community.
• Strengthen City’s ability to
preserve its overall employment
capacity.

Page 25 ends

Study Session: General Plan and Land Use
Growing Climate Crisis

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Study Session: General Plan and Land Use
• Major Climate Legislation, AB 32
“California Global Warming Solutions Act”
and SB 375 “Sustainable Communities
and Climate Protection Act.”
• 2007 Green Vision, a green jobs and
sustainability plan.

Impact of the Great Recession
• Record unemployment
• Significant drop in home values
• Downturns across nearly all major
industries
• Extreme budget shortfalls
• Major impact to City’s ability to
provide adequate services

Page 27 ends

Study Session: General Plan and Land Use

"With the 2009-2010 Adopted Budget, the
City of San Jose has addressed General
Fund budget deficits for eight consecutive
years. Over this period, the City has
eliminated 830 positions and
closed General Fund budget
shortfalls totaling more than $464 million”
- 2009-2010 City Manager’s Budget Message

Page 28 ends

By the years
1994
General Plan 2020,
Focus on the Future
Adopted
Focused Growth & VMT Shift,
Climate Smart, Housing
Production Spike, and
continued Tech growth

Page 29 ends

Envision San José 2040
General Plan Adopted
2011
Smart-Growth, Tech
Boom, Sprawl, and the
Great Recession
2018- 2025
Housing
Crisis, State
Intervention
2005-2010 2011-2018
Study Session: General Plan and Land Use
Envision 2040
2011
Economic
Growth/Fiscal
Sustainability
Focused Growth Environmental
Sustainability

Page 01 ends

12 Major Strategies

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• Urban Villages
• Streetscapes for People
• Sustainability/Environmental
Stewardship
• Fiscally Strong City
• Community Based
Planning
• Form Based Plan
• Focused Growth
• Innovation/Regional
Employment Center
Study Session: General Plan and Land Use
• Destination Downtown
• Life Amidst Natural
Resources
• Design for a
Healthful Community
• Periodic Major Review
Focused Growth

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Study Session: General Plan and Land Use
The Grand
Bargain: 100% of
the Growth in 16%
of the land area

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Study Session: General Plan and Land Use
Where we
planned for the
growth to happen

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Study Session: General Plan and Land Use

Improving City’s Budget through
Land Use

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• Jobs first General Plan (for
a while)
• Closer look at fiscal impact
of land use decisions
• More than 50% of General
Fund revenue comes from
property tax and sales tax
Study Session: General Plan and Land Use
Cost of Sprawl vs. Value of Jobs

Page 36 ends

Study Session: General Plan and Land Use
Net Fiscal Impact
Single-
Family/
Townhomes
High Density
Multi-
Family
Commercial Hotel Industrial
• Sprawling single-
family/Townhome
developments require more
city services such as Fire,
Police, and Library services.
• Commercial, hotel, and
industrial uses require fewer
services and provide more
revenue, off-setting those
costs.

Climate Smart/Sustainability

Page 37 ends

Study Session: General Plan and Land Use
• Incorporated goals from 2007
Green Vision.
• Includes goals around Green
Building, Water Conservation,
Zero-Waste and protection of
natural resources.
• Climate Smart Plan (2018)
incorporated into General Plan.

By the years
1994
General Plan 2020,
Focus on the Future
Adopted
Focused Growth & VMT Shift,
Climate Smart, Housing
Production Spike, and
continued Tech growth

Page 38 ends

Envision San José 2040
General Plan Adopted
2011
Smart-Growth, Tech
Boom, Sprawl, and the
Great Recession
2018- 2025
Housing
Crisis, State
Intervention
2005-2010 2011-2018
Study Session: General Plan and Land Use
Post Adoption
2011-2018
Economic Growth Fiscal Responsibility Sustainability
Carbon Neutrality by
2030
EV Infrastructure
More Public Transit

Page 01 ends

Post-Recession Growth
San Jose Grows
• Longest economic expansion since WWII
• Backlog of pre-recession entitlements
• Policy environment + market forces 
residential growth, primarily in North San
Jose through the second half of expansion

Page 40 ends

Study Session: General Plan and Land Use
Affordable Policies in Limbo
Challenge building affordable
housing
• Inclusionary Housing Ordinance Litigation
(2010-2015 litigation)
• End of Redevelopment in California
• Implementation of Affordable Housing
Impact Fee, 2014

Page 41 ends

Study Session: General Plan and Land Use
1st Four Year Review
• Adopted policies to increase affordable
housing production
• Modified jobs to employed resident ratio
from 1.3 to 1.1
• Urban Village implementation policy
adjustments

Page 42 ends

Study Session: General Plan and Land Use

Responding to the Housing Crisis
• Sept. 2017 Council Direction
• Housing Crisis Workplan – 25,000 Units in
Five Years
• Creation of Housing Catalyst Team
• Intensification of focus on delivering
housing production
• Amending policies and programs to
facilitate new units

Page 43 ends

Study Session: General Plan and Land Use
By the years
1994
General Plan 2020,
Focus on the Future
Adopted
Focused Growth & VMT Shift,
Climate Smart, Housing
Production Spike, and
continued Tech growth

Page 44 ends

Envision San José 2040
General Plan Adopted
2011
Smart-Growth, Tech
Boom, Sprawl, and the
Great Recession
2018- 2025
Housing
Crisis, State
Intervention
2005-2010 2011-2018
Study Session: General Plan and Land Use
Housing Crisis: Land
use authority shifts
2018-2025 Mindset
Economic Growth Fiscal Responsibility Sustainability
Carbon Neutrality by
2030
EV Infrastructure
More Public Transit

Page 01 ends

2nd Four Year Review
• Housing in Neighborhood Business Districts
• Eliminate Growth Horizons
• Missing Middle 1.0/Opportunity Housing
• Removing Commercial Requirements

Page 46 ends

Study Session: General Plan and Land Use
Housing Crisis: State Rewrites
the Playbook
2018 to Present
• State Laws to permanently realign land use authority
for cities
• Zoning since its creation had always been inherently
local
• City planning, including current General Plan, relied on this framework
Page ???
Study Session: General Plan and Land Use
• SB 35 – 2018 – Streamline approval
for affordable/ mixed-income
• AB 2162 – 2019 – Streamlined
approval supportive housing
• SB 1333 – 2019 – Charter cities align
GP and Zoning
• SB 330/HAA/HCA – Limits
discretion on housing
decisions, limits
downzoning, adds
penalties
• State Density Bonus Law
• 6th Cycle Housing Element
Page
Housing Crisis: Fast and Extreme
Change in State Law
2018 to Present
Study Session: General Plan and Land Use
Page
Housing Crisis: Volume of Laws
Immense
2018 to Present
Study Session: General Plan and Land Use
Key Land Use
Challenges &
Emerging Issues

Page 50 ends

Biggest barrier to Housing
Production: The Economics
• Reliance on private investment to deliver housing
• Biggest barrier to new housing is economic infeasibility • Regular assessment through Cost of Residential Development report
• Reports done in 2018, 2019, 2022, and 2023
• Local index for SF Bay Area of construction costs between Q1 2018 and Q1 2025 shows an increase of 54%
• Other inputs have also grown, e.g., insurance and interest rates

Page 51 ends

Study Session: General Plan and Land Use
Historical Housing Production Trends

Page 52 ends

Study Session: General Plan and Land Use

Impact of City Costs: Fees & Taxes
• Included as part of annual Cost of Development
• City impact fees and taxes based on 2023 report are ~8% • City permitting costs less than %1 of total unit costs • Not enough to significantly move the needle

Page 53 ends

Study Session: General Plan and Land Use
Why 15 Urban Village Plans in 14 Years?
• Focused Growth meant all new growth in our urban
villages
• Challenging and resource intensive
• Removal of Horizons sped up timeline
• 46% of Urban Village land area is planned (not
including Diridon)
• Almost all Village Plans reliant on grant funding
• Intensive community engagement

Page 54 ends

Study Session: General Plan and Land Use
55 Combined Station Areas
Neighborhood Villages
“Traditional” Villages
Balancing Upzoning & Displacement
• Initial Urban Village strategy in 2011 focused on mixed-use replacing commercial and intensification of existing multifamily housing
• GP 2020 high density was 25 to 50 DU/AC in GP 2040 typically 30 to 95 DU/AC
• Demonstrated by the assigned capacity assigned to Southwest Expressway Urban Village

Page 56 ends

Study Session: General Plan and Land Use
• 65% of Southwest Expressway
Village is existing residential
uses
• Assigned a capacity of 3,000
new units in the 2040 General
Plan

Page 57 ends

Upzoning & Displacement
• Thinking shifted in 2015 with
proposal to redevelop the Reserve
Apartments
• 216-units to 636-units in
Winchester Urban Village
• Led to adoption of Ellis Act
Ordinance and Tenant Protection
Ordinance in 2017

Page 58 ends

Study Session: General Plan and Land Use
Urban Village
Composition

Page 59 ends

Type Percent %
Residential 20%
Commercial 80%
Study Session: General Plan and Land Use
Capacity Unavailable
Commercial Elimination in
Urban Villages
• Increased pressure on conversion of commercial in
Urban Villages
• Presents other challenges to City fiscal health &
small business displacement
• Example in Alum Rock Urban Village

Page 60 ends

Study Session: General Plan and Land Use
Example: 2358 Alum Rock Ave

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Study Session: General Plan and Land Use
• New retail space expensive and often unsuitable for
existing tenants
• Requirements to provide replacement commercial
space have changed

Page 62 ends

Loss of Local Serving Small
Businesses
Study Session: General Plan and Land Use
Market Changes and the
Future of Work
• Remote work shift has impacted office
market, but it only makes up a small share of
growth areas
• Office vacancy Citywide is ~ 20%
• Retail vacancy is less than 5%

Page 63 ends

Study Session: General Plan and Land Use
Citywide Urban Village
Composition

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Type Percent %
Residential 20%
Other uses including retail 75%
Office 5%
Study Session: General Plan and Land Use

Study Session: General Plan and Land Use
Just 30% of Housing on 78%
of the Land

Page 65 ends

30.00%

1.67% 1.50% 0.03% 0.78%

66.00%
78%

2.43% 1.11% 0.52% 0.32%
17%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%
Single Family Two Family Three & Four Family 5-10 Units 11-20 Units 20+ Units Missing
Middle
Long Term Impact of Lower Density to
Meeting Housing Goal

Page 66 ends

Proposal at 5670 Camden Ave
Units: 108 townhomes
Size: 10.7 acres
Density: ~ 10 Dwelling Units per acre
Land Required to
meet annual
housing goal
770 Acres
Pleasant Hills GC Site
Units: ~2,000 units (SF / townhomes)
Size: 114 acres
Density: 17.54 Dwelling Units per acre
Land Required to
meet annual
housing goal

3.89 Pleasant Hill GC sites per year
Largest Urban Villages Total Area
Berryessa Bart 270
Oakridge Mall 380
Winchester 300
Study Session: General Plan and Land Use
Evolution of the San
Jose Housing Crisis
• Availability Crisis and Affordability Crisis
• These lower densities are expensive, and
do not serve everyone
• San José Median Sale Price Townhomes:
$1,102,000 (July 2025 Redfin)
• Requires gross annual income between
$280,000 and $365,000
• 143% to 187% Area Median Income (AMI)

Page 01 ends

Study Session: General Plan and Land Use
Where We’re
Headed

Page 68 ends

Current 4-Year
Review
Plan for the 7th Cycle
Housing Element
Critical Timelines Focused Scope – Limited
Policy Adjustments

Page 01 ends

Build-up to the 7th Cycle
Housing Element
Study Session: General Plan and Land Use
Now through June 2026
General Plan 4-year review
Task Force
2026-2027
General Plan Amendments
Environmental Impact Report
2027-2030
7th Cycle Housing Element 2031-2039
Certification Target by June 2030

Current 4-Year Review Focus
Increasing Residential
Capacity
Missing Middle
Housing
Jobs/ Employed
Residents
Urban Villages

Page 71 ends

Increasing Residential Capacity
• How do we accommodate additional growth beyond
current regional housing need goals?
• How do we plan for all types and ranges of housing that current and future markets could support?
• What are potential approaches to housing opportunity
areas?

Page 72 ends

Creating Missing Middle Housing
Opportunities
How do we:
• Accommodate missing middle housing to meet market
demand?
• Identify areas where we can pursue gentle/mid
densities?

Page 73 ends

Study Session: General Plan and Land Use

Rebalance Jobs / Employed
Residents Ratio
How do we:
• Ensure balanced growth that
provides opportunities for jobs
and housing?
• Adjust the Job/Employed Resident
Targets?

Page 74 ends

Study Session: General Plan and Land Use
Urban Village Strategy
• How do we further streamline the Urban Village
conversation and think differently about approach to
UVs?
• How do we preserve the opportunity for future density? • How do we protect opportunity for neighborhood
serving commercial and small business?

Page 75 ends

Study Session: General Plan and Land Use
How did we get here?
What current
challenges do we face?
Where are we
going from here?

Page 76 ends

Take Aways

Questions
and
Comments

Page 01 ends

Study Session: Land Use and General Plan
Thank
You!
Questions?
SanJoseca.gov/Planning

Page 78 ends
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