Council Backs Transit-Tiered Density Study, Rejects Low-Transit Carve-Out in 9-2 Vote

San José's planning department is running at roughly 130% of capacity, and on Oct. 20, 2026, the City Council decided where that limited staff time goes next. By a 9-2 vote, the council directed staff to study missing-middle density on a tiered, transit-based map, after rejecting a substitute that would have kept current density in low-transit neighborhoods. The council also accepted a police auditor's report amid anger over license plate reader misuse and rejected appeals against a 276-unit downtown project and an Nvidia testing lab.

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• Tiered missing-middle density study adopted 9-2; status-quo carve-out for low-transit areas fails
• Childcare barrier-removal work added to planning agenda; smoke shop zoning retained
• Police auditor's 12 recommendations accepted unanimously as speakers demand an end to Flock contracts
• 276-unit West San Carlos project upheld, with a height check tied to labor standards
• Nvidia chip-testing lab permit survives CEQA appeal 9-0; data center rules promised in December

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Where Density Gets Studied, and Who Waits

The basics: "Missing middle" refers to housing between single-family homes and large apartment buildings, such as duplexes and small multiplexes. The state Department of Housing and Community Development (HCD) reviews whether city housing plans comply with state law. Noncompliance can trigger the "builder's remedy," which lets developers bypass local zoning.

Why it matters: Staff capacity is the real constraint. "We're at about 130% of capacity," said Christopher Burton, Director of Planning, Building and Code Enforcement, who described a 3.3 full-time-equivalent staffing gap and said a March return on the analysis is unrealistic. "90% of the planning division's capacity is taken up reacting to new mandates from the state," said Mayor Matt Mahan.

Where things stand: The winning motion, made by Vice Mayor Pam Foley, adopted a memo from the mayor, Foley and Councilmembers Pamela Campos, Anthony Tordillos and Michael Mulcahy. It calls for a tiered, transit-based analysis, asks staff to return "as soon as possible," and requires staff to consider current densities in moderate-to-severe fire hazard zones. "We're merely approving an analysis of that density," Foley said.

The other side: Councilmember George Casey, District 10, offered a substitute that merged the tiered approach with a memo from Casey and Councilmembers Domingo Candelas, Peter Ortiz and David Cohen. That memo would have preserved status-quo density in areas with limited transit access. "If we go up, we can never come down," Casey said. He urged the council to wait on state laws.

Critics of the substitute argued it was unfair to other districts and invited trouble with HCD, a risk Burton had already raised about geographic exclusions. "Putting the burden on everybody else is not something that I could support," said Councilmember Rosemary Kamei, District 1. "We have a region-wide and a citywide housing crisis," said Councilmember Anthony Tordillos, District 3.

Public commenters split. Manos Salazar urged 32 units per acre in single-family zones citywide, saying only 9% of housing goals have been permitted. A commenter identified as Sandra argued that state laws such as SB 79 and SB 9 already upzone, and that 8 units per acre should remain the minimum. Dave Noel, president of the Erickson Neighborhood Association, backed both memos and asked for clarity on housing element risk.

Childcare and smoke shops: The adopted memo replaces retail-in-residential-neighborhoods work with childcare policy updates. SEIU Local 521 family child care providers, Parent Voices and Working Partnerships USA pushed for the change, citing provider closures and the council's December 2023 childcare commitment. Mahan stressed that the work removes barriers to opening facilities and does not add city funding.

Councilmember Peter Ortiz, District 5, protested repeated delays to smoke shop zoning work the council directed in May 2024. "But where's that same level of concern from staff for what's already going wrong in East San Jose?" he asked. Mahan suggested prioritizing planner hiring in the March budget message and cited a $750,000 Bloomberg grant for permitting. Kamei doubted hiring alone would be enough. The smoke shop work stayed in the plan.

Decisions and stakeholder impacts: The substitute failed. The clerk read six no votes: Kamei, Cohen, Foley, Tordillos, Campos and Mulcahy. Cohen's name appeared on the substitute's underlying memo, and the yes tally was not stated. The amended main motion then passed (For: 9, Against: 2, Candelas and Casey). Transit-rich neighborhoods are now more likely to see upzoning analysis. Low-transit areas did not win an exemption.

What's next: Councilmember Bien Doan, District 7, won a local-control amendment, which staff will fold into the January legislative program. Staff will return with the density analysis as soon as possible.

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Police Auditor Report Lands Amid Plate-Reader Fallout

Why it matters: The report arrived weeks after an officer misused automated license plate reader (ALPR) data against a domestic violence victim. As a result, public trust in surveillance safeguards dominated the hour-long hearing.

Where things stand: Interim Independent Police Auditor Dwight White reported record audits and 12 recommendations. They cover ALPR access, notification about property loss, vehicle impounds, profanity and tracking of open recommendations. "An increase in allegations does not necessarily mean an increase in misconduct," White said.

San José Police Chief Joseph agreed with each recommendation in whole or in part. He resisted a new profanity policy and a daily email mandate. "If an officer is going to swear at somebody, it's going to prevent them from using force, then you know what, I'd rather have them do that," the chief said.

The other side: Speakers from the NAACP, SIREN, Safety Over Surveillance and the Democratic Socialists of America called for ending the city's Flock contracts and for independent audits. Kimberly Wu of SIREN urged the city to cover cameras and suspend ALPR. Sean Allen, president of the San Jose Silicon Valley NAACP, asked the council to give city auditors subpoena-style powers, similar to a state law for sheriffs. Tim McKenzie of DSA Silicon Valley criticized the chief's profanity remark and asked who knew what, and when, about the misuse. Hans Aguilar, a former police oversight director, said questions in his letter remain unanswered publicly. D'Angelo Quintero said immigrant communities fear federal access to Flock data.

Decisions and stakeholder impacts: Mahan cited pending state legislation and recent council action. "In recent months the council has taken action supported by the city manager, the chief, to delete all ALPR data every 30 days," he said. Tordillos flagged local ordinances and a larger role for the auditor. "I don't think that today's report is the end of the discussion by any means on this ongoing question about the security of our ALPR data," he said. Cohen proposed regular reports to the Rules Committee. Candelas moved to accept the report and the department's response, and the motion passed unanimously.

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Downtown Tower Survives Fire and Labor Challenges

Where things stand: Deputy Director of Planning Manira Sandhir said the 0.89-acre project at 470 West San Carlos St. qualifies for the AB 130 environmental exemption. The project includes 276 units, 14 of them affordable at the very low income level, plus five density bonus waivers. Fire variances will be handled at the permitting stage.

The other side: An appellant representing an adjoining commercial property owner asked for documented building separation and a site-specific fire-safety plan. Kathy Sutherland, an appellant speaker, cited a $975,000 performance bonus in the Knox Goodrich deal, questioned density bonus eligibility, and challenged the stated height of 84 feet, 10.5 inches. Will Smith of IBEW Local 332 and Doug Block of Silicon Valley Residents for Responsible Development argued the building may reach 85 feet, the height that triggers labor standards. Brian Kurtz of the San Jose Downtown Association urged the council to deny the appeals.

"The loss of confidence is really what has sparked a lot of the concerns that you're hearing today," said Councilmember Michael Mulcahy, District 6, who also described neighborhood improvements.

Decisions and stakeholder impacts: Mulcahy moved to deny both appeals, and Tordillos seconded. The motion added a condition verifying the building's height against the 85-foot threshold. It passed unanimously, with Ortiz recused over campaign donations. Whether construction workers receive labor protections now depends on the final measured height.

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Nvidia Lab Clears CEQA Appeal, Data Center Rules Pending

Where things stand: Principal Planner David Keyon said the special use permit allows up to 20 megawatts in an existing research-and-development building at 300 Holger Way, with no exterior changes. That qualifies the project for a Class 32 infill exemption from the California Environmental Quality Act (CEQA). Menlo Equities is the applicant.

The other side: Kalila Fetterman, representing appellant Citizens for Responsible Industry, argued that a pending Bay Area Air Quality Management District generator application and building permits show foreseeable equipment, and requested a full environmental impact report. Dashiell Leeds of the Sierra Club Loma Prieta Chapter pressed the same point about generators, cooling towers and substations. Marcos Espinoza said he was never notified and raised concerns about noise and diesel particulates. Dexter Goody, a nearby mobile home park resident, worried the data center label would hurt home values. Sylvester Ramirez of DevCon Construction urged denial, noting union labor on the interior work.

Decisions and stakeholder impacts: "There are no grounds for a CEQA appeal on a project that doesn't require CEQA," said Councilmember David Cohen, District 4, who moved to deny the appeal. Council members said any new physical equipment would require new review. The appeal was denied (For: 9, Against: 0, Absent: Ortiz, Recused: Foley).

What's next: Staff will bring an update to the city's dated data center definition in December.

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• Annual report: The general fund ended with a 0.2% variance, and $7.1M goes back into a reserve sitting near $30M against a roughly $100M target. It was approved unanimously, with Campos absent.
• BASIS school: A general plan amendment for a private school serving up to 800 students on 3.9 acres at 525 Race St. may continue processing; it passed unanimously with Ortiz absent.
• Spring Street: The council vacated a segment for a Guadalupe River Park soccer complex funded partly by the last Measure P bond money; construction is slated for summer 2027.
• Civil Service Commission: Alan Mowat beat incumbent Tom Cochran 6-4 for the full term, and Lisa Pate won the partial term with 10 votes.
• Proclamations: Taiwan Day was recognized, and Ortiz highlighted two federal grants to restore the Chinese Cultural Gardens at Overfelt Gardens Park.

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Looking ahead: Watch for the data center definition update in December, Doan's local-control language in January's legislative program, and the planning staff's return on the tiered density analysis.