The San Jose Planning Commission has signed off on changes to the previously approved urban village project — including reducing it by a few hundred residential units and scrapping most of its affordable housing in exchange for a $13.9 million payment. Representatives from Sand Hill Property Co.
said that the developers needed to adjust the project to match market conditions since the city first approved plans in 2022 for 994 units, including 150 that qualified as affordable housing. The latest configuration shows the project will create 772 residential units, including 39 at 100% area median income, in addition to building a senior assisted living and memory care facility. “I was really excited about the initial project and the current land use at El Paseo is very old-fashioned and very much not making full use of the land,” Commissioner Justin Lardinois said.
“I’m really excited to see mixed-use development there. I’m disappointed that the project really has across-the-board reductions ..
. but at the same time, I recognize that when these things go through a many-year planning process, the economic conditions do change.” Sand Hill has planned to redevelop about one-third of the 30-acre shopping center at 1312 El Paseo and 1777 Saratoga Ave.
in southwest San Jose after purchasing the property for $146.6 million in 2019. The original 150-unit affordable housing component was based on the city’s inclusionary housing policy, which requires residential developmen.