San Jose City Council Meeting – February 24, 2026: Approvals, Appeals, and Workforce Hearing

The San Jose City Council met on February 24, 2026, to address a wide-ranging agenda including ceremonial recognitions, consent calendar items, business improvement district establishments, affordable housing funding, a new workforce housing program, two land-use appeals, and a public hearing on city vacancies and retention. The meeting featured extensive public testimony and council deliberation, resulting in several unanimous approvals and one split vote.

Ceremonial Items

• Pajama Plus Project: Recognized for donating 1,000 pairs of pajamas and essentials to children in need in 2025. Councilmember Campos presented the commendation; co-founders Libby and Pally spoke about their mission.
• SJ Sharkey Commendation: Honored the San Jose Sharks mascot for being inducted into the Mascot Hall of Fame and named NHL Mascot of the Year in 2025. Chris Shea from Shark Sports & Entertainment accepted.

Consent Calendar

• Item 2.8: Pulled for separate vote due to Councilmember Mulcahy's recusal (owner/tenant of retail building). Approved 10-0 with one recusal.
• Remaining consent items: Approved unanimously after one public comment (Brian Darby urged careful spending).

Public Comments & Testimony

• Item 10.2 (2334 Lundy Avenue appeal): Multiple residents from the adjacent Lundy Place neighborhood spoke in opposition, citing noise, traffic, safety, and air quality concerns. They argued the environmental review was insufficient and requested a full Environmental Impact Report. Several Milpitas and San Jose residents, union representatives, and business owners spoke in support, emphasizing job creation, economic revitalization, and the developer’s track record.
• Item 10.3 (PayPal Park concerts appeal): Matthew Bright, representing the New Hall Neighborhood Association, argued the environmental addendum was flawed, the proposed noise monitoring self-regulated by the applicant was inadequate, and that a supplemental EIR should be required. He urged real-time independent monitoring. Dozens of speakers supported the permit, including former councilmember Dev Davis, small business owners, hospitality representatives, the Chamber of Commerce, and the Bay Area Host Committee, citing economic benefits and the venue’s suitability.
• Item 3.4 (Vacancies and retention): Public comments included Carlos Murillo (airport engineer) who credited union negotiations for improved pay and retention, and Brian Darby who requested a day recognizing crime victims.

Discussion Items

• City Manager’s Report (Item 3.1): Recognized Planning, Building, and Code Enforcement (PBCE) for launching “Pop-Up Permits” at libraries and community centers, and for the “Best Prepared Designer” program (250 projects passed final inspection since 2023). PBCE staff stood to be recognized.
• Item 5.1 (King Road Affordable Housing Grant): Councilmember Duan presented a memorandum to improve bus stop spacing, safety, and community outreach. Councilmembers discussed prescriptive language; staff confirmed the grant acceptance does not mandate specific design choices. Motion passed unanimously.
• Item 8.1 (Alameda BID): Councilmember Mulcahy explained the deferral allowed addressing concerns from home-based businesses, resulting in their removal from the BID. Approved unanimously.
• Item 8.2 (Story Road BID): Public comments raised safety and homelessness concerns. Councilmember Duan expressed support. Report accepted unanimously.
• Item 8.3 (East Santa Clara Senior Affordable Housing): Eric Soliman (Housing Director) presented 68 units for seniors at 30-60% AMI, leveraging HUD 202 funds. Councilmember Tordillos moved approval; passed unanimously.
• Item 8.4 (Trillium Senior Apartments): 62 additional affordable units (30-50% AMI) funded with 9% tax credits and city gap financing. Approved unanimously.
• Item 8.5 (Lower Income Voucher and Equity Program – LIVE): New program to master-lease distressed assets downtown, providing affordable units at ~80% AMI with a preference for public employees. Councilmember Casey’s memo proposed prioritizing 50 units for SJPD, but legal concerns over “exclusive use” were raised. Councilmember Tordillos suggested “preference” instead. After debate, Vice Mayor Foley offered a substitute motion to adopt staff recommendation and refer the preference proposals to the city attorney for a legal opinion on fair housing. Passed 8-3 (Ortiz, Duan, Casey dissenting).
• Item 10.2 (2334 Lundy Avenue appeal): Councilmember Cohen noted the site is zoned for industrial use, the adjacent KB Homes were built with disclosures, and the developer’s plans for advanced manufacturing could bring jobs. Motion to deny the appeal and uphold director’s approval passed unanimously.
• Item 10.3 (PayPal Park concerts appeal): Councilmember Mulcahy moved to deny the appeal and approve the permit with amendments: remove monitoring point LT4, require monthly soundboard reporting, bring baseline study reports to CED within 90 days of first concerts, and require one follow-up study in year two. Motion passed unanimously.
• Item 3.4 (Public Hearing on Vacancies): Staff reported a citywide vacancy rate of 9.06% (down from 9.95% the prior year), praising reduced turnover and innovative recruitment. IAFF highlighted a 23% paramedic vacancy and requested targeted recruitment at FCTC events. A coalition of unions (IFPTE Local 21 and MEF-AFSCME) credited the 2023 contract for improvements but warned of mixed signals from the city (e.g., hiring freezes, large event spending). They urged sustained investment in compensation, remote work flexibility, and pension parity. Councilmembers thanked both sides and acknowledged budget challenges.

Key Outcomes

• Item 8.5: Substitute motion passed 8-3; staff recommendation adopted (LIVE program approved). City attorney to return with legal analysis on proposed preferences.
• Items 10.2 and 10.3: Both appeals denied; director’s approvals upheld with minor modifications (item 10.3 only).
• Items 3.3, 5.1, 8.1, 8.2, 8.3, 8.4: All approved unanimously.
• Item 3.4: Staff report accepted; council directed administration to follow up on data points raised.
• City Manager’s Report: Recognized PBCE efforts.