San Jose allows housing development in business districts – San José Spotlight

The dynamic in three San Jose neighborhoods is about to shift, with a greater focus on residential development.

The City Council voted unanimously Tuesday to change the neighborhood business districts of Japantown, Willow Glen and 13th Street to allow for new housing. The updated zoning code will enable development of 50 to 65 homes per acre at heights of 50 to 65 feet. City leaders have been discussing the housing strategy since 2021.

Tim Mulcahy, Willow Glen Business Association president, said the higher density means more people will be living and working in the vicinity of downtown Willow Glen, including the Lincoln Avenue business district. This will be beneficial to property owners and tenants as it draws in more foot traffic.

Mulcahy is part of the family firm SDS NexGen Partners, a privately held real estate and investment firm led by his sibling, Managing Partner Michael Mulcahy, who voters elected to the District 6 council seat in November.

Tim Mulcahy said each housing development should be judged on its own merits, however, and should be vetted in a reasonable manner to ensure concerns such as lack of parking are addressed.

“COVID-19 and the lockdowns have not been kind to the businesses on our Avenue,” he told San José Spotlight. “The business association has been working with property owners to solicit new and diversified businesses to create a more vibrant shopping experience.”

Justin Daniels, San Jose supervising planning director, said the city has 10 business districts — and five already allow for residential development.

“General concerns of the proposed (zoning update) focused on the impact of parking congestion, public safety and labor standards with potential residential developments,” he said. “Other comments (included) historic preservation, transit access and business displacement with proposed developments.”

Calle Willow, a nearby neighborhood business district, was excluded from the recent zoning update after residents and small business owners raised concerns about displacement.

To combat the displacement of business space, future housing projects within these districts must retain at least one floor dedicated for retail, if the development is part of an existing structure. Developers also need to repurpose any historical structures that are on the property.

Japantown Business Association President Tamiko Rast said several new multi-story housing complexes have been built in their communities, and additional housing in the business corridor is welcomed as long as there is thoughtful integration with the surrounding neighborhood.

“We’re very happy to report our continued, positive working relationship with the developers and managers,” Rast told San José Spotlight.
David Hernandez, a representative for downtown advocacy group Opening Doors Silicon Valley, said he has grown up around North 13th Street and always viewed it as a retail area. He said he’s not opposed to seeing housing in shopping corridors as long as the developments are well integrated into the area and bring more business to existing retail shops.

Any future developments should actively avoid displacing or negatively impacting nearby small businesses, he said.

“The downtown corridors that have some kind of history and culture aspect to the block — I think it’s important to maintain that,” he told San José Spotlight. “Retail is already bad enough in San Jose. If you go downtown, there’s really no retail, and this has been a long time Hispanic corridor for small mom and pop shops.”

Contact Vicente Vera at [email protected] or follow @VicenteJVera on X, formerly known as Twitter.