A proposed high-rise housing project just north of Santana Row and Westfield Valley Fair that would have dwarfed the surrounding buildings and had residents referring to it as a “monstrosity” has now been effectively torpedoed.
San Jose city officials have rejected a developer’s request to amend the land-use designation of a blighted parcel on Winchester Boulevard near Hedding Street and close to a single-family neighborhood.
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The proposal by VCI Cos. to construct 17-story and 14-story towers connected by a skyway had spurred a groundswell of opposition from the surrounding neighborhood and sparked a philosophical debate between housing advocates and homeowners over the appropriateness of higher-density buildings near single-family homes and whether the city should rethink zoning designations if it is going to meet state housing mandates.
While VCI had requested a zoning change to the transit-residential designation to build the height and density it was looking for, planning staff and city officials noted that not only was the site not in close proximity to major transit, but the buildings proposed were out-of-scale with the existing neighborhood, prompting several residents to refer to it as a “monstrosity.”
“There’s no argument we need more housing at all levels, which is why I’m proud to say that District 6 has been adding its fair share with 623 units of multi-family housing under construction right now – 23% of all units underway in our city,” said District 6 City Councilmember Michael Mulcahy, who represents the area. “Unfortunately, this applicant’s proposal doesn’t fit the intent of the transit-residential designation they’re pursuing.”
VCI had acquired the .6-acre parcel at 826 N. Winchester Ave. for more than $6.5 million in 2023 after the previous owners faced foreclosure. Before the property changed hands, other developers envisioned housing projects for the dilapidated office property, which had previously been the site of multiple fires and criminal activity. The current zoning designation at the site limits the height on some parts of the property to 35 feet while allowing up to 50 feet on other portions.
During a planning commission meeting last month, commissioners deadlocked on providing a recommendation for the project.
As part of the plans submitted to the city, Kelly Erardi, director of entitlements at VCI, said the development envisioned 135 units, including setting aside 20 for inclusionary affordable housing.
While the current commercial building remains abandoned, Erardi said the developer had planned to include 15,000 square feet of retail space and 18,800 square feet of privately owned, public open space that it would design with feedback from the community.
Recognizing the concerns raised by nearby homeowners, Erardi added that the developer was willing to make concessions by reducing the building height.
“We’re ready to work on compromises and we’ve already committed to reducing the height to a maximum of 11 stories and if we can, we’ll consider doing more,” Erardi said.
But for many residents, the project presented too many problems they could not overlook.
Resident Deborah Newcomb said a city planner visited the Cory Neighborhood several years ago to warm up residents to the idea of high-density housing. She had been impressed with the developments she saw around the city that blended in and complemented existing areas.
The North Winchester development did not fit that description.
“Now, we are faced with a proposal by a developer to build two twin towers — that are taller than Levi’s Stadium — in the middle of our very small residential community,” Newcomb said.
Along with opposing the size of the project, Lisa Miller, a 23-year resident of the Cory Neighborhood, noted the transportation woes in the area, including the fact that the project would encourage more use of the public transit system.
“It blatantly violates the general plan,” Miller said. “Our expert and professional city staff recommend against it and public transit in our area is declining. The transit station at Valley Fair Mall closed in 2021 and it’s still vacant.”
Chuck Packer, an attorney in San Jose who lives on the Santa Clara side impacted by the project, also questioned the developer’s honesty and integrity.
“The developer of this Winchester property is the same developer as the Delmas Village project, which has been abandoned for the last two years,” Packer said. “If you drive by, it’s concrete with rebar sitting outside of it. It’s ironic that the builder’s representative said they’ve taken over this project that was in default and abandonment, yet one of their projects … has been abandoned and sitting vacant in San Jose.”
With the project situated near the Santa Clara border, Santa Clara Mayor Lisa Gillmor and Vice Mayor Kelly Cox also raised concerns about the project’s scale, compatibility, and impacts on traffic, safety, and shared road infrastructure.
“Our residents are not opposed to well-integrated housing solutions,” Gillmor and Cox wrote in a letter to the San Jose City Council. “However, this proposal does not reflect sound, balanced planning for a transitional neighborhood of this type. The proposed height and density are not appropriate for this location and would have direct, negative impacts on adjacent Santa Clara neighborhoods.”
While the vast majority of residents opposed the project, housing advocates lamented their belief that planning officials were standing in the way of development at a time when the city needed housing the most.
As part of the Regional Housing Needs Allocation, San Jose needs to plan for 62,200 units by 2031 but has struggled to keep pace as market conditions have slowed development projects from getting shovels in the ground.
“If San Jose has to build 60,000 homes in the next six years, how do we get there if you stop housing here,” Catalyze SV Executive Director Alex Shoor said. “How do you ensure we reach our citywide needs? When this new abundance movement talks about cities failing to build housing because they put process over outcomes, this project is what they mean.”
