SAW:GAR:MMV
12/03/2025
T-48837.002 / 2266746
Council Agenda: 12-16-2025
Item No.: 2.16(b)
DRAFT--Contact the Office of the City Clerk at (408)535-1260 or [email protected] for final document.
RESOLUTION NO. ______________
A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN
JOSE REALLOCATING ACQUISITION FUNDING TO
INCREASE THE CONSTRUCTION-PERMANENT LOAN
FOR THE GATEWAY TOWER AFFORDABLE HOUSING
DEVELOPMENT TO $38,440,000
WHEREAS, the City of San José (“City”) City Council desires to adopt this resolution for the reasons set forth in the memorandum, dated November 26, 2025, from the Housing Director for the December 16, 2025 City Council meeting; and
WHEREAS, on September 30, 2025, the City Council approved funding commitments for the Gateway Tower Affordable Housing Development located at 445, 465, and 493 South First Street and 460, 470, and 480 South Market Street (“Development”), including a $20,270,000 construction-permanent loan and $18,170,000 for land acquisition based on the findings set forth in Resolution No. RES2025-345; and
WHEREAS, as described in the staff report dated November 26, 2025, the City and the County of Santa Clara determined that, due to an existing County purchase option on the site, the County will assume responsibility for acquiring the property and ground-leasing it to the developer, eliminating the need for the City to fund the land purchase; and
WHEREAS, staff recommends a reallocation of the previously approved acquisition funding to increase the construction-permanent loan so that the City's total loan commitment becomes $38,440,000, with no change to the total amount of City investment; and
WHEREAS, reallocating the funding to the construction-permanent loan will increase the City’s long-term loan repayment through residual receipts and streamline financing for the Development; and
SAW:GAR:MMV
12/03/2025
T-48837.002 / 2266746
Council Agenda: 12-16-2025
Item No.: 2.16(b)
DRAFT--Contact the Office of the City Clerk at (408)535-1260 or [email protected] for final document.
WHEREAS, accepting the staff report and approving the recommended reallocation will enable the City to proceed toward a February 2026 construction financing closing and support the start of construction in March 2026;
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF SAN JOSE THAT:
The acquisition funding for the Gateway Tower Affordable Housing Development is hereby authorized to be reallocated to the construction- permanent loan, increasing that loan to $38,440,000.
ADOPTED this _____ day of ___________, 2025, by the following vote:
AYES:
NOES:
ABSENT:
DISQUALIFIED:
MATT MAHAN
Mayor
ATTEST:
TONI J. TABER, MMC
City Clerk