OPENPUBLICA · PUBLIC MEETING RECORD
Record of Proceedings

San Jose Planning Director Hearing - March 5, 2025: Historic Preservation and Affordable Housing Approval

Planning CommissionWednesday, March 5, 2025
BodySan Jose, California
SessionPlanning Commission
DateWednesday, March 5, 2025
StatusFILED
Video Record

STREAMING COPY IN PREPARATION — RECORDING AVAILABLE FROM THE ORIGINAL SOURCE

Transcript — Verbatim
0:02

Good morning.

0:05

We are calling to order the planning director hearing of February 26, 2025.

0:12

My name is Ruth Gueto, and I am the hearing officer for today's agenda on behalf of and delegated by the Director of Planning, Building, and Code Enforcement, Christopher Burton.

0:23

This meeting is being held via Zoom conference call.

0:27

Members of the public may participate by following the instructions listed on page two of the agenda.

0:35

If you would like to provide public comment, you have two methods to do so.

0:42

The first is for those participants who joined electronically and have audio input available on their computer or smartphone.

0:50

They can use the raise hand feature in Zoom during the agenda item they would like to speak to, or click star nine on their phone.

0:59

Remember to keep your raise hand feature on until planning support staff identify your turn to speak.

1:07

During the meeting, you can also call 408 535 3505 or email planning support staff at San Joseca.gov and identify your name that is listed on Zoom, phone number that you'll call into Zoom with and what item or items you would like to comment on.

1:33

All members of the public will remain on mute until the individual identifies they would like to speak and they are unmuted.

1:41

Planning support staff will identify you by name when it is your turn to speak.

1:46

At that time, you will be unmuted and can provide comment for the allotted time.

1:51

If you exceed your allotted time, you may be muted so we can move on to the next speaker.

1:57

Please note the following.

2:07

For those items on the consent calendar, I will ask if anyone wishes to speak on the item.

2:12

If a separate discussion is warranted, I will move the item to the public hearing portion of the agenda.

2:18

If a separate discussion is not needed, the item will remain on the consent calendar for approval.

2:24

For those items listed under public hearing, I will ask staff to provide a brief report.

2:30

The applicant and or their representative who wishes to speak on the item will have up to five minutes to speak and should identify themselves by stating their name for the record.

2:40

After the applicant or their representative has spoken, any member of the public who wishes to speak on the item may provide testimony up to two minutes per speaker, either for or against the project.

2:52

All members of the public should identify their name for the record, although it is not required.

2:58

Following comments from the public, the applicant may take additional remarks for up to five minutes.

3:15

I will then take action on the item.

3:18

If you challenge these land use decisions in court, you may be limited to raising only those issues you or someone else raised at this public hearing or in written correspondence delivered to the city at or prior to the hearing.

3:32

The planning director's actions on agenda items will be final when the permit is signed and mailed, unless the permit or the environmental clearance determination is appealed.

3:43

The planning director's actions on the permits are appealable in accordance with the requirements of Title 20 of the municipal code.

3:51

The planning director's actions on the environmental review for the permits under the California Environmental Quality Act CEQA are separately appealable in accordance with the requirements of Title 21 of the municipal code.

4:06

Before we begin, I want to remind members of the public to follow our code of conduct at this meeting.

4:16

This includes commenting on the specific agenda item only.

4:19

Public speakers will not engage in a conversation with the hearing officer or staff.

4:24

The hearing officer, staff, and the public are expected to refrain from abusive language.

4:31

Repeated failure to comply with the code of conduct, which will disturb, disrupt, or impede the orderly conduct of this meeting may result in removal from the meeting.

4:41

The meeting of the director hearing will now come to order.

4:49

We will move on to the second part of the agenda, which is deferrals.

5:00

Any item scheduled for hearing this morning for which deferral to a future meeting date is being requested will be moved to this portion of the agenda and considered on the matter of deferral.

5:06

I will identify any items to be deferred and ask for comments from the audience.

5:10

If you want to change any of the deferral dates or speak to the question of deferring these or any other items, please use a raise hand feature in Zoom or click star nine to raise a hand to speak.

5:25

The following items are proposed for deferral.

5:28

Item A, H24-055, and ER24-248, which is a site development permit to allow the installation of a new six-foot high fence, an automatic vehicular gate, and an existing surface parking lot serving town park towers on an approximately 0.96 gross acre site at 60 North Third Street, located at 63rd Nord Street in Council District 3.

5:59

CEQA exemption is pursuant to SEQA guidelines 15303E for new construction and conversion of small structures.

6:08

Staff recommendation is to defer this item to the March 5th, 2025 director hearing meeting per staff request.

6:18

I will see if there are any requests to speak on the matter of this deferral.

6:30

I see no hands raised.

7:01

Staff, can we have the agenda back up on the screen, please?

7:24

Thank you.

7:27

The second item under deferrals is item 2B, TR24-419, which is a live tree removal permit for the removal of one ordinance size redwood tree with a circumference of approximately 116 inches on a single family residential property located at 1181 Magnolia Avenue in Council District 6.

7:59

Staff's recommendation is to drop this item and will be renoticed to the March 5th, 2025 director hearing meeting.

8:24

Seeing none, I will move forward with dropping this item to be deferred to March 5th, 2025.

8:31

The matter of deferrals is now closed.

8:41

Moving on to the consent calendar.

9:09

This item is actually on public sharing.

9:11

Okay.

9:12

That's what I'm saying.

9:13

Thanks for okay.

9:15

So then uh there actually are no items on the consent calendar.

9:19

So we're going to move on to the public hearing portion of the agenda.

9:22

Again, what you see on the screen 3A is actually item 4A under the public hearing.

9:30

So the one item on public hearing is file number H24-034, HP 24-001, and ER24-165.

10:00

This is a site development permit and historic preservation permit to allow the partial demolition of city landmark number 74, Herald College, and the structure of merit and the total demolition of a third building for the construction of a 100% affordable 15-story mixed use building consisting of up to 220 units and approximately 3,320 square feet of ground floor commercial space on an approximately 0.50 gross acre site located at 465 467 South 1st Street.

Discussion Breakdown — Share of Meeting
Procedural█████████████████████████████████████37%
Historic Preservation█████████████████████████25%
Affordable Housing█████████████████████21%
Public Comment███████7%
Land Use█████5%
Labor Standards█████5%
Summary of Proceedings

San Jose Planning Director Hearing - March 5, 2025: Historic Preservation and Affordable Housing Approval

Note: The meeting transcript indicates the hearing occurred on February 26, 2025, but the provided date for this summary is March 5, 2025. This discrepancy is noted per instructions.

The Planning Director Hearing, presided over by Hearing Officer Ruth Gueto on behalf of the Director of Planning, Building, and Code Enforcement, considered a single public hearing item: a site development permit and historic preservation permit for a 100% affordable 15-story mixed-use building with 220 units and 3,320 square feet of ground-floor commercial space at 465-467 South 1st Street (and adjacent addresses) in Council District 3. The project involves partial demolition of City Landmark No. 74 (Herald College) and a Structure of Merit, and full demolition of a third building. Staff recommended approval based on a hardship finding under the Historic Preservation Ordinance (Section 13.48.260).

Public Comments & Testimony

  • Steve Cohen (property manager, HLC member, speaking as individual): Opposed the project. Argued the applicant failed to demonstrate immediate hardship, noting the properties have been vacant since 2016 with no effort to generate revenue, and that the applicant (Core Development, a company with over $100M in assets) could rent out the spaces. He also claimed the project is not the same design as the 2016 approved project, and that the landmark is eligible for the National Register.
  • Rigo Gallardo (Field Representative, NorthCal Carpenters Union Local 405): Expressed conditional support for the project, emphasizing the need for a responsible contractor that adheres to fair labor standards. Urged the developer to engage with the union to ensure quality construction and community workforce benefits.
  • Chris Asweda (downtown San Jose resident): Strongly supported the project. Cited the long-vacant lot as a detriment to downtown vibrancy and stated that the affordable housing is urgently needed.
  • Eric Schenauer (applicant representative, Core Companies): Responded to comments, noting that the 2016 project was market-rate and the current project is smaller because it is 100% affordable (financing different). He argued that the hardship analysis is thorough and that preserving the facades and adding a permanent historic display commemorates Doc Herald's legacy. He also stated the project will be subject to the city's responsible contractor ordinance.

Discussion Items

  • Staff Report (Angela Wang): Detailed the project scope: 15 stories, 220 units, 3,320 sq ft commercial on a 0.50-acre site. The historic preservation permit is required for alterations to City Landmark No. 74. The Historic Landmark Commission (HLC) on February 5, 2025, voted 3-1 to recommend denial, finding the hardship documentation insufficient. However, staff disagreed, citing the applicant's evidence that retaining the landmark building intact would render the project economically infeasible due to code compliance costs and loss of efficient floor area. Staff concluded the project meets the hardship criteria and recommended approval. The project also includes two density bonus concessions and seven waivers, and an addendum to the 2016 Gateway Tower Mixed Use Development Project Supplemental EIR found no new significant environmental impacts.
  • Hearing Officer's Comments: Noted that state housing laws (Housing Accountability Act) limit the city's ability to deny housing projects. Determined that the staff report and findings adequately support approval, despite the HLC's contrary recommendation.

Key Outcomes

  • Approval: The hearing officer approved the site development permit (H24-034), historic preservation permit (HP24-001), and the CEQA addendum (ER24-165). The decision is final upon signing and mailing of permits, with appeal rights under Title 20 (permits) and Title 21 (environmental review) of the municipal code.
  • No other items: The consent calendar was empty; two items were deferred to March 5, 2025 (inconsistency noted: the transcript dates those deferrals to March 5, but the hearing date itself is stated as February 26; the order may reflect the transcript's original date). The meeting adjourned after the single decision.

Meeting Transcript

Good morning. We are calling to order the planning director hearing of February 26, 2025. My name is Ruth Gueto, and I am the hearing officer for today's agenda on behalf of and delegated by the Director of Planning, Building, and Code Enforcement, Christopher Burton. This meeting is being held via Zoom conference call. Members of the public may participate by following the instructions listed on page two of the agenda. If you would like to provide public comment, you have two methods to do so. The first is for those participants who joined electronically and have audio input available on their computer or smartphone. They can use the raise hand feature in Zoom during the agenda item they would like to speak to, or click star nine on their phone. Remember to keep your raise hand feature on until planning support staff identify your turn to speak. During the meeting, you can also call 408 535 3505 or email planning support staff at San Joseca.gov and identify your name that is listed on Zoom, phone number that you'll call into Zoom with and what item or items you would like to comment on. All members of the public will remain on mute until the individual identifies they would like to speak and they are unmuted. Planning support staff will identify you by name when it is your turn to speak. At that time, you will be unmuted and can provide comment for the allotted time. If you exceed your allotted time, you may be muted so we can move on to the next speaker. Please note the following. For those items on the consent calendar, I will ask if anyone wishes to speak on the item. If a separate discussion is warranted, I will move the item to the public hearing portion of the agenda. If a separate discussion is not needed, the item will remain on the consent calendar for approval. For those items listed under public hearing, I will ask staff to provide a brief report. The applicant and or their representative who wishes to speak on the item will have up to five minutes to speak and should identify themselves by stating their name for the record. After the applicant or their representative has spoken, any member of the public who wishes to speak on the item may provide testimony up to two minutes per speaker, either for or against the project. All members of the public should identify their name for the record, although it is not required. Following comments from the public, the applicant may take additional remarks for up to five minutes. I will then take action on the item. If you challenge these land use decisions in court, you may be limited to raising only those issues you or someone else raised at this public hearing or in written correspondence delivered to the city at or prior to the hearing. The planning director's actions on agenda items will be final when the permit is signed and mailed, unless the permit or the environmental clearance determination is appealed. The planning director's actions on the permits are appealable in accordance with the requirements of Title 20 of the municipal code. The planning director's actions on the environmental review for the permits under the California Environmental Quality Act CEQA are separately appealable in accordance with the requirements of Title 21 of the municipal code. Before we begin, I want to remind members of the public to follow our code of conduct at this meeting. This includes commenting on the specific agenda item only. Public speakers will not engage in a conversation with the hearing officer or staff. The hearing officer, staff, and the public are expected to refrain from abusive language. Repeated failure to comply with the code of conduct, which will disturb, disrupt, or impede the orderly conduct of this meeting may result in removal from the meeting. The meeting of the director hearing will now come to order. We will move on to the second part of the agenda, which is deferrals. Any item scheduled for hearing this morning for which deferral to a future meeting date is being requested will be moved to this portion of the agenda and considered on the matter of deferral. I will identify any items to be deferred and ask for comments from the audience. If you want to change any of the deferral dates or speak to the question of deferring these or any other items, please use a raise hand feature in Zoom or click star nine to raise a hand to speak. The following items are proposed for deferral. Item A, H24-055, and ER24-248, which is a site development permit to allow the installation of a new six-foot high fence, an automatic vehicular gate, and an existing surface parking lot serving town park towers on an approximately 0.96 gross acre site at 60 North Third Street, located at 63rd Nord Street in Council District 3. CEQA exemption is pursuant to SEQA guidelines 15303E for new construction and conversion of small structures. Staff recommendation is to defer this item to the March 5th, 2025 director hearing meeting per staff request. I will see if there are any requests to speak on the matter of this deferral. I see no hands raised. Staff, can we have the agenda back up on the screen, please? Thank you. The second item under deferrals is item 2B, TR24-419, which is a live tree removal permit for the removal of one ordinance size redwood tree with a circumference of approximately 116 inches on a single family residential property located at 1181 Magnolia Avenue in Council District 6. Staff's recommendation is to drop this item and will be renoticed to the March 5th, 2025 director hearing meeting. Seeing none, I will move forward with dropping this item to be deferred to March 5th, 2025. The matter of deferrals is now closed.

SUMMARIZED BY OPENPUBLICA AI
TRANSCRIPT VIA PUBLIC VIDEO
openpublica.com