The SVO Voices Its Support of Downtown San Jose KT Urban Project

Letter was sent to the San Jose City Council in advance of the upcoming May 23 meeting:

On behalf of The silicon valley organization (The SVO), we are writing to encourage the Council to approve agenda item 10.2 along with the Memo authored by Mayor Sam Liccardo, Vice Mayor Magdalena Carrasco, Councilmember Raul Peralez, and Councilmember Sylvia Arenas.

Proceeding with item 10.2 would see to the adoption of a resolution for certifying the Greyhound Residential Project Supplement Environmental Impact Report, the Vesting Tentative Map, and the Site Development Permit and Special Use Permit. Downtown high-rise development results in some of the highest one time fees and assessed valuations both in absolute dollars and on a per acre basis.

Taxpayers benefit from impact fees that pay for City staff, parks, and affordable housing. Without redevelopment, taxpayers stand to lose millions in incremental property taxes and property tax assessments that pay for our libraries, open space, affordable housing and many other community benefits.

City and County taxpayers will also suffer from reduced transfer taxes each time a property is sold. A downtown one acre parcel purchased years ago might have an assessed valuation of $10 million an acre. If a developer has an economically viable project, the assessed valuation would increase by over $200 million dollars driving taxes to local Jurisdictions.

At a tax rate of 2% including property taxes and assessments, the old project pays $200,000 and the new project generates approximately $4,000,000, an increase of $3,800,000 annually. The impact fees on the 350 unit project would also generate approximately $35,000 per unit or $12.25 million with the Downtown Commercial High Rise Incentives Program.

Additionally, The SVO is a strong advocate for job growth and retention in our area. This project will create thousands of new construction jobs in our community.