OPENPUBLICA · PUBLIC MEETING RECORD
Record of Proceedings

Community and Economic Development Committee Meeting – December 15, 2025

City Council — Monday, December 15, 2025
BodySan Jose, California
SessionCity Council
DateMonday, December 15, 2025
StatusFILED
Video Record
0:00 / 1:52:34
Transcript — Verbatim
0:00

This is the Community and Economic Development Committee meeting and I am late and I apologize.

0:22

So can we take the roll please?

0:26

Councilmember Casey.

0:27

Here.

0:28

Mulcahy.

0:28

Here.

0:29

Ortiz.

0:30

Present come a chair Foley here. Thank you

0:34

great

0:38

Sorry while I get settled here

0:41

We have nothing on consent and nothing on the work plan

0:46

Let's move right into the committee reports. The first one is the team San Jose annual and annual performance audit

0:54

Which we well because it's annual we hear it every year

1:00

Joe, I think you're presenting.

1:05

Welcome.

1:08

With Adrian Perez from my office, we're here to present our audit of Team San Jose's performance

1:12

for fiscal year 24-25.

1:18

Since 2004, the San Jose McHenry Convention Center and several other city-owned facilities

1:29

have operated on the city's behalf by Team San Jose.

1:32

Additionally, since 2009, Team San Jose has operated

1:36

the San Jose Convention and Visitors Bureau

1:39

to promote tourism and provide services

1:42

such as marketing, public relations,

1:43

and convention sales and services.

1:46

My office, under the terms of the management agreements

1:48

between the city and Team San Jose,

1:50

performs an annual performance audit

1:52

to determine whether and how well Team San Jose met

1:55

agreed upon performance targets that are the basis

1:57

for a performance-based fee from the city.

2:02

Under the terms of the agreement to operate the facilities,

2:05

Team San Jose's annual performance is measured

2:07

across five different performance areas.

2:10

In fiscal year 24-25, Team San Jose met its weighted incentive fee scores

2:15

and Convention of Israel Bureau performance targets.

2:19

Specifically, Team San Jose exceeded its target in gross operating results,

2:23

Booked 133,500 hotel room nights, exceeding the target of 117,000.

2:31

Had an estimated economic impact of nearly $95 million, which is greater than the target of 78 million.

2:40

Held 540 days of events at the cultural facilities, resulting in an occupancy rate of 97%,

2:45

and received 97% satisfaction ratings on its customer service surveys.

2:51

Both of those exceeded their targets as well.

2:53

As a result, Team San Jose met its weighted incentive fee targets and qualifies for the

2:59

performance-based fee of $300,000 as outlined in the agreement with the City.

3:05

We do not have any recommendations in the report, and because of that, there is not

3:08

a written management response.

3:11

Any feedback we receive during the course of the work has been incorporated into the

3:15

body of the report.

3:16

I ask that you accept the report in cross-reference to the January 13th meeting of the City Council.

3:21

happy to answer any questions and representatives from Team San Jose as

3:24

well as from the Office of Economic Development and Cultural Affairs are here

3:27

to as well to answer questions thank you thank you Joe thank you for the

3:32

presentation do we have any members of the public who wish to speak there is no

3:36

public comment okay then I'll move to the committee councilmember Mulcahy

3:43

uh thank you vice mayor um thank you for the report joe and team um just full disclosure i'm the

3:53

council liaison to team san jose and a founding board member of the organization

3:58

um and you know probably one of its you know more outspoken supporters and critic at time

4:06

but I said this at their board meeting last week I think a year ago there was

4:14

some you know real concern about Team San Jose performance and some of the you

4:21

know considerations about their role and I just want to sort of give the

4:27

organization a lot of praise for how quickly they've responded to being an

Discussion Breakdown — Share of Meeting
Economic Development███████████████████████████████████████████43%
Affordable Housing████████████████████████████28%
Community Engagement██████████10%
Municipal Finance█████5%
Engineering And Infrastructure█████5%
Miscellaneous███3%
Public Safety███3%
Technology and Innovation██2%
Late Night Uses█1%
Summary of Proceedings

Community and Economic Development Committee Meeting – December 15, 2025

The Community and Economic Development (CED) Committee met on December 15, 2025, to receive reports on the annual Team San Jose performance audit and semi-annual updates on the “Building More Housing” and “Growing Our Economy” focus areas. Committee members discussed performance metrics, program challenges, and future priorities, and accepted all reports.

Public Comments & Testimony

  • On Team San Jose audit: No public comments.
  • On Building More Housing:
    • Lillian (last name not stated) asked how the city plans to preserve housing at all income levels (3.4), specifically how to stabilize housing for different incomes when housing costs continue to rise.
    • Claire Beekman praised the transparency on fees and noted construction cost ideas from San Diego, but urged continued focus on extremely low- and very low-income housing.
  • On Growing Our Economy:
    • Blair Beekman commended downtown revitalization but expressed caution about the pavilion in St. James Park, hoped for new economic models beyond tax-and-spend, and encouraged collaboration with San Diego.
    • Daniel Rita (self-identified as owner of Daniel Rita’s Beauty Intoxication) shared personal experiences with tech and legal issues, requesting a voice within the system.
  • Open Forum:
    • Lillian commented on the passing of Roma Dawson, chair of the Housing Commission, and stressed the importance of affordable housing.
    • Blair Beekman raised worker rights advocacy for a previous speaker, tech accountability, and Bay UASI meeting outcomes.

Discussion Items

  • Team San Jose Annual Performance Audit (FY 24‑25):
    • Joe (Auditor’s Office) and Adrian Perez presented the audit. Team San Jose exceeded all performance targets: booked 133,500 hotel room nights (target 117,000), estimated $95 million economic impact (target $78 million), held 540 event days at 97% occupancy, and achieved 97% customer satisfaction. As a result, Team San Jose qualifies for the $300,000 performance-based fee. The report has no recommendations.
    • Councilmember Mulcahy (council liaison to Team San Jose) expressed strong support, noting the organization’s rapid improvement and integration with SJ2026.
    • Councilmember Kamei praised progress but suggested setting more aggressive performance goals for 2026/2027 to capitalize on upcoming opportunities.
  • Building More Housing Focus Area – Semi‑Annual Update:
    • Rosalyn (Deputy City Manager) introduced the updated focus area 2.0 model emphasizing learning and transparency. The three priority areas are land use policy/regulation, development services, and linking land to capital.
    • Chris Burton (Director of Planning, Building, Code Enforcement) reported:
      • The four‑year General Plan review is underway using the Planning Commission as a task force.
      • The ministerial permit process is expanding downtown; the first city ministerial project was approved.
      • New “days added by the city” metric shows performance on multifamily permits: examples included 14 days added to a 272‑day project and 35 days added to a nearly 200‑day project. Affordable housing projects are processed faster due to an enhanced process.
      • The fee estimator tool is expanding to multifamily construction to improve transparency.
    • Eric (linked land to capital) noted results from the cost of development study: townhomes and stacked flats pencil out well; towers and dense projects remain challenging. Upcoming January 27 session will address IHO updates, incentive programs, and office‑to‑residential conversions.
    • Councilmember Ortiz asked about capacity given budget constraints. Staff acknowledged the balancing act and prioritization of affordable housing, which can shift resources from market‑rate projects. Councilmember Casey asked about technology investments to avoid manual data pulls; staff noted ongoing work to align systems and a recently filled analyst position.
  • Growing Our Economy Focus Area – Semi‑Annual Update:
    • Jen Baker (Director of Office of Economic Development and Cultural Affairs) presented 23 goals across four problem areas:
      • Business Development & Workforce Preparedness: 1,300 jobs created in 2025‑26; 69 unstably housed clients enrolled in a pilot workforce program; 50 AI‑related trainings launched with 31 clients enrolled; new outbound business development at Semicon West.
      • Infrastructure Readiness: 19 data centers/large energy projects in pipeline as of September 2025; 3 of 17 projects progressed to next stage; projected $2.1 million tax revenue from three projects for 2026‑27. The PG&E power agreement and LS Power permit are on track. The Regional Wastewater Facility entered an exclusive negotiating agreement with Prologis.
      • Downtown & Neighborhood Districts: Downtown office leasing incentive program yielded 3 companies engaged; 2 lease renewals; 3 business attraction wins (Lucid Motors, Papi and Claro, VTA security office). Alameda and Alum Rock BIDs coming to council. New small business grants launching January 2026.
      • Sports & Entertainment District Planning: Two studies (entertainment district and Convention Center expansion) underway; administrative guidelines for entertainment zones advanced; 8 entertainment zones activated; 64% of annual goal of 485 event days achieved.
    • Councilmember Casey clarified data center numbers (19 total, 3 of 17 progressed). Councilmember Ortiz asked about community benefits from data centers; staff emphasized utility tax revenue ($3–6M annually per facility) and workforce development partnerships with PG&E and Work2Future. Ortiz also asked about local hiring and apprenticeships; staff noted union jobs and a PG&E workforce development agreement. On neighborhood watch parties for 2026, staff committed to working with willing business districts but did not specify funding amounts. Councilmember Kamei expressed concern that the Director’s Alliance is asking neighborhoods for $15,000 fees, which may exclude small businesses; she requested clarity on decision‑making for neighborhood activations.

Key Outcomes

  • Team San Jose Audit: The committee accepted the FY 24‑25 performance audit and cross‑referenced it to the January 13, 2026 City Council meeting (corrected from January 15). Vote: unanimous.
  • Building More Housing Update: The committee accepted the semi‑annual update. Vote: unanimous.
  • Growing Our Economy Update: The committee accepted the semi‑annual update. Vote: unanimous.
  • Future meetings: The next CED meeting is scheduled for February 2026. The all‑housing session is set for January 27, 2026.

Meeting Transcript

This is the Community and Economic Development Committee meeting and I am late and I apologize. So can we take the roll please? Councilmember Casey. Here. Mulcahy. Here. Ortiz. Present come a chair Foley here. Thank you great Sorry while I get settled here We have nothing on consent and nothing on the work plan Let's move right into the committee reports. The first one is the team San Jose annual and annual performance audit Which we well because it's annual we hear it every year Joe, I think you're presenting. Welcome. With Adrian Perez from my office, we're here to present our audit of Team San Jose's performance for fiscal year 24-25. Since 2004, the San Jose McHenry Convention Center and several other city-owned facilities have operated on the city's behalf by Team San Jose. Additionally, since 2009, Team San Jose has operated the San Jose Convention and Visitors Bureau to promote tourism and provide services such as marketing, public relations, and convention sales and services. My office, under the terms of the management agreements between the city and Team San Jose, performs an annual performance audit to determine whether and how well Team San Jose met agreed upon performance targets that are the basis for a performance-based fee from the city. Under the terms of the agreement to operate the facilities, Team San Jose's annual performance is measured across five different performance areas. In fiscal year 24-25, Team San Jose met its weighted incentive fee scores and Convention of Israel Bureau performance targets. Specifically, Team San Jose exceeded its target in gross operating results, Booked 133,500 hotel room nights, exceeding the target of 117,000. Had an estimated economic impact of nearly $95 million, which is greater than the target of 78 million. Held 540 days of events at the cultural facilities, resulting in an occupancy rate of 97%, and received 97% satisfaction ratings on its customer service surveys. Both of those exceeded their targets as well. As a result, Team San Jose met its weighted incentive fee targets and qualifies for the performance-based fee of $300,000 as outlined in the agreement with the City. We do not have any recommendations in the report, and because of that, there is not a written management response. Any feedback we receive during the course of the work has been incorporated into the body of the report. I ask that you accept the report in cross-reference to the January 13th meeting of the City Council. happy to answer any questions and representatives from Team San Jose as well as from the Office of Economic Development and Cultural Affairs are here

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