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Civic Plaza the San Jose Redevelopment Agency

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					REDEVELOPMENT PLAN CHRONOLOGY: CIVIC PLAZA


Adopted June 15, 1999
(Original Plan)
City Ordinance No. 25887

First Amendment
Adopted June 15, 1999
City Ordinance No. 25888
(Merger: Civic Plaza)

Second Amendment
Adopted December 7, 1999
City Ordinance No. 25998
(Delete tax increment)

Third Amendment
Adopted March 6, 2001
City Ordinance No. 26197
(Merger: Neighborhood Business Clusters)

Fourth Amendment
Adopted June 25, 2002
City Ordinance No. 26663
(Merger: Strong Neighborhoods Initiative)

Fifth Amendment
Adopted August 6, 2002
City Ordinance No. 26660
(Merger: Century Center Expanded Area)

Sixth Amendment
Adopted November 18, 2003
City Ordinance No. 27011
(SB 1045— Extend date of plan effectiveness,
date to incur debt and receive property taxes)

Seventh Amendment
Superior Court of Santa Clara County; Case No. 1-02-CV-811706
Ruling April 26, 2005 (invalidated Ord. Nos. 26659 and 26660)
City Ordinance No. 27511, adopted August 9, 2005
    .



Removed the expanded area from the Century Center
Project Area and Merged Project Area



296715
9/19/2006
REDEVELOPMENT PLAN CHRONOLOGY: CIVIC PLAZA (continued)


Adoption of Ordinance describing eminent domain plan
Adopted June 5, 2007
City Ordinance No. 28044
(no amendment to plan — adoption of ordinance per SB 53 describing the
eminent domain plan)




       	
296715                                2
8/1/2007
 RD:PAD:CER
 4/18/2007


                                ORDINANCE NO. 28044

                  AN ORDINANCE OF THE CITY OF SAN JOSE
                  CONTAINING	   A	    DESCRIPTION	   OF	  THE
                 •REDEVELOPMENT AGENCY OF THE CITY OF SAN
                  JOSE'S PROGRAM TO ACQUIRE REAL PROPERTY BY
                 •EMINENT DOMAIN IN ITS ADOPTED REDEVELOPMENT
                  PROJECT AREAS



WHEREAS, the Council of the City of San Jose. ("Council") adopted various ordinances
approving and adopting the Redevelopment Plans for its Redevelopment Project Areas
("Redevelopment Plans"); and


WHEREAS, the Redevelopment Agency of the City of San Jose ("Agency") has been
designated as the official redevelopment agency of the City of San Jose to carry out the
functions and requirements of the Community Redevelopment Law of the State of
California (Health and Safety Code Section 33000 et seq.) and to implement the
Redevelopment Plans; and


WHEREAS, the Redevelopment Plans each contain a section on the Agency's authority
to acquire property by eminent domain; and


WHEREAS, Section 33342.7 of the Health and Safety 'Code, which was added by
Senate Bill 53 ("SB 53") and took effect on January 1, 2007, requires a legislative body
that adopted a redevelopment plan containing eminent domain authority before January
1, 2007, to adopt an ordinance on or before July 1, 2007, containing a description of the
agency's program to acquire real property by eminent domain;


NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF SAN
JOSE:




T-10593\ 410783 (2)
Board Agenda: 5-15-07
Rem Number: 8.1
 RO:PAD:CER	                                                            Ord. No. 28044
 4/18/2007


 Section 1. Pursuant to Section 33342.7 of the Health and Safety Code, a description
 of the Agency's program to acquire real property by eminent domain is set forth in
 Attachment A, attached hereto and incorporated herein by this reference. The
Agency's program to acquire real property by eminent domain may be amended only by
 amending the Redevelopment Plan pursuant to Article 12 of the Community
 Redevelopment Law (commencing with Health and Safety Code Section 33450).


 Section 2. If any part of this Ordinance is held to be invalid for any reason, such
decision shall not affect the validity of the remaining portion of this Ordinance, and this
City Council hereby declares that it would have passed the remainder of this Ordinance
if such invalid portion thereof had been deleted.




                     	
T-1 0593\ 410783 (4)                         2
Board Agenda: 5-15-07
Item Number 8.1
 RD:PAD:GER	                                                                Ord. No. 28044
 4/18/2007


 Section 3. The City Clerk will certify to the passage of this Ordinance by the City
 Council and cause the same to be published once in the San Jose Post-Record, a
 newspaper of general circulation, and it will take effect thirty (30) days after its final
 passage.


PASSED FOR PUBLICATION of title this 15 th day of May, 2007, by the following
vote:

                  	
          AYES:              CAMPOS, CHIRCO, CONSTANT, CORTESE,
                             LICCARDO, NGUYEN, OLIVERIO, PYLE, WILLIAMS;
                             REED

          NOES:	             NONE


          ABSENT:	           NONE


          DISQUALIFIED: NONE


         VACANT:	            DISTRICT 4



                                                            CHUCK REED
                                                            Mayor




LEE PRICE, MMC
City Clerk




T-10593\ 410783 (4)
Board Agenda: 5-15-07
Item Number: 8.1
                 	
RD:PAD:CER                                                                Ord. No. 28044
4/18/2007


                                        ATTACHMENT A

                     EMINENT DOMAIN AUTHORITY OVER REAL PROPERTY



                                NO EMINENT DOMAIN AUTHORITY

     Eminent Domain                      Project Area                     Authority
 Authority Expiration Date

 N/A                               East Santa Clara Street      No authority

 12/31/2003                        Alum Rock Avenue             Authority has expired

 12/02/2005	                -     - Japantciwn                  Authority has expired

 07/01/2006                        Story Road                   Authority has expired

 12/13/2006                        Monterey Corridor            Authority has expired



                          LIMITED EMINENT DOMAIN AUTHORITY

    Eminent Domain                      Project Area                     Authority
Authority Expiration Date

06/24/2008                        Almaden Gateway              Allowed - except for property
                                                               containing residential uses

01/01/2009                        San Antonio Plaza            Allowed - except for property
                                                               on which any person resides

12/15/2010                        Century Center               Allowed - except for property
                                                           .   on which any person resides

12/15/2010                        Edenvale                     Allowed - except for property
                                                               on which any person resides

12/15/2010                        Guadalupe-Auzerais           Allowed - except for property
                                                               on which any person resides

12/15/2010                        Julian-Stockton              Allowed - except for property
                                                               on which any person resides



                    	
T-10593 \ 410783 (4) 	                       Page 1 of 3
Board Agenda: 5-15-07                                                            ATTACHMENT A
Item Number: 8.1
                   	
RD:PAD:CER                                                     Ord. No. 28044
4/18/2007



12/15/2010               Market Gateway              Allowed — except for property
                                                     on which any person resides
                                   -
12/15/2010               Olinder                     Allowed — except for property
                                                     on which any person resides

12/15/2010               Pueblo Uno                  Allowed — except for property
                                                     on which any person resides

12/15/2010               Rincon de los Esteros       Allowed — except for property
                         (including expanded         on which any person resides
                         areas)

12/31/2010               West San Carlos Street      Allowed — except for property
                                                     on which any person resides

                                                     Not allowed on
                                                     unincorporated County land
                                             •       unless otherwise approved by
                                                     County.

03/06/2013               Neighborhood Business       Allowed — except for property
                         Clusters                    on which any person resides




                    	
T-10593\ 41 0783 (4) 	
           .                           Page 2 of 3
Board Agenda: 5 15-07
               ,                                                      ATTACHMENT•A
Item Number: 8.1
RD:PAD:CER                             t,
                                                                Ord. No. 28044
4/18/2007



 06/25/2014                  Strong Neighborhoods    Allowed — except for single-
                             Initiative              family, owner-occupied,
                                                     residential property and with
                                                     the requirements set forth
                                                     below, as adopted by the
                                                     Board and Council and re-
                                                     affirmed in the Five-Year
                                                     Implementation Plan:
                                                     At least 2/3 affirmative vote of
                                                     the Agency Board to acquire
                                                     any property.
                                                     Single Family Residential
                                                     may only be acquired if
                                                     Agency Board previously
                                                     approves a Disposition and
                                                     Development Agreement for
                                                     that property. -
                                                     30-day noticing prior to the
                                                     Agency Board meeting at
                                                     which a project (Disposition
                                                     and Development Agreement
                                                     Or Owner Participation
                                                     Agreement) is heard for that
                                                     property.



                              UNLIMITED AUTHORITY

     Eminent Domain                Project Area                Authority
 Authority Expiration Date

06/24/2008                   Park Center             Allowed

12/31/2010                   Alameda                 Allowed

06/15/2011                   Civic Plaza             Allowed




                   	
T-10593\ 410783 (4) 	                  Page 3 of 3
Board Agenda: 5-15-07                                                  ATTACHMENT A
Hem Number: 8.1
            	
 RD:JCK                                                               Ord. No. 27511
 8/10/05

                                ORDINANCE NO. 27511

                AN ORDINANCE OF THE CITY OF SAN JOSE •
                REPEALING ORDINANCE NOS. 26659 AND 26660 TO •
                REMOVE 31 ACRES BOUNDED GENERALLY BY SANTA
                CLARA. STREET TO THE SOUTH, JULIAN STREET TO
                THE NORTH, THIRD STREET TO THE EAST AND
                MARKET STREET TO THE WEST FROM THE CENTURY
                CENTER REDEVELOPMENT PROJECT AREA AND
                FROM •THE SAN JOSE MERGED AREA
                REDEVELOPMENTPROJECT


WHEREAS, on August 6, 2002, the City Council adopted Ordinance Nos. 26659 and
26660 which adopted the Fifteenth Amended Century Center Redevelopment Plan
adding a 31-acre site bounded generally by Santa Clara Street to the South, Julian
Street to the North, Third Street to the East and Market Street to the West (the
"Expanded Area").to the existing Downtown San Jose Century Center Redevelopment
Project Area and merged the Expanded Area into the San Jose Merged Area
Redevelopment Project, respectively. The ordinances were effective as of
September 6, 2002; and


WHEREAS, on April 26, 2005, the Superior Court of California for the County of Santa
Clara in Case No. 1-02-CV-811706 invalidated Ordinance No. 26659 and that decision
is final.


NOW THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF SAN
JOSE AS FOLLOWS:


SECTION 1. Repeal of Ordinance No. 26659. Ordinance No. 26659 is hereby
repealed.


SECTION 2. Repeal of Ordinance No. 26660. Ordinance No. 26660 is hereby
repealed.




316375	                                 1
           	
 RD:JCK                                                            Ord. No. 27511
 8/10/05

 SECTION 3. Effective Date. This Ordinance shall be effective as of September 6,
 2002, nunc pro tunc.




 PASSED FOR PUBLI6ATION of title this 9 th day of August, 2005, by the following
 vote:


          AYES:	          CAMPOS, CHAVEZ, CHIRCO, CORTESE, LeZOTTE,
                          PYLE, REED, WILLIAMS, YEAGER; GONZALES

          NOES:	          NONE


          ABSENT:	        NONE


          DISQUALIFIED: NONE


       VACANT:	          DISTRICT 7



                                                    RON GONZA ES
                                                    Mayor
ATTEST:
      -



LEE RICE, CMC
City Clerk




316375	                               2
              	
RD:JCK:CER	                                                           11-4-03 / 10.2
10/7/2003                                                            Ord. No. 27011


                               ORDINANCE NO. 27011

                  AN ORDINANCE OF THE CITY OF SAN JOSE AMENDING
                  CERTAIN TIME LIMITATIONS WITH RESPECT TO THE
                  REDEVELOPMENT PLANS FOR THE ALAMEDA,
                  ALMADEN GATEWAY, ALUM ROCK AVENUE, CENTURY
                  CENTER, CIVIC PLAZA, EAST SANTA CLARA STREET,
                  EDENVALE, GUADALUPE-AUZERAIS, JAPANTOWN,
                  JULIAN-STOCKTON, MARKET GATEWAY, MONTEREY
                  CORRIDOR, NEIGHBORHOOD BUSINESS CLUSTERS,
                  OLINDER, PARK CENTER, PUEBLO UNO, RINCON DE
                  LOS ESTEROS, SAN ANTONIO PLAZA, STORY ROAD,
                  STRONG NEIGHBORHOODS INITIATIVE, AND WEST
                  SAN CARLOS STREET PROJECT AREAS


WHEREAS, Section 33681.9 of the Health and Safety Code was added by SB 1045,
which took effect on September 1, 2003, and requires the Redevelopment Agency of
the City of San Jose ("Agency") during the 2003-2004 fiscal year to make a payment for
deposit in Santa Clara County's Educational Revenue Augmentation Fund, in the
amount of approximately $10 million; and

WHEREAS, Sections 33333.2 and 33333.6 of the Health and Safety Code were
amended by SB 1045 to provide that when an agency is required to make a payment
pursuant to Section 33681.9, the legislãtive body may amend a redevelopment plan to
extend by one year the time limit of the effectiveness of the plan and the time limit to
repay indebtedness or receive property taxes.

BE IT ORDAINED BY THE COUNCIL OF THE CITY OF SAN JOSE:

Section 1. The redevelopment plans for The Alameda, Almaden Gateway, Alum
Rock Avenue, Century Center, Civic Plaza, East Santa Clara Street, Edenvale,
Guadalupe-Auzerais, Japantown, Julian-Stockton, Market Gateway, Neighborhood
Business Clusters, Olinder, Park Center, Pueblo Uno, Rincon de los Esteros, San
Antonio Plaza, Story Road, Strong Neighborhoods Initiative, and West San Carlos
Street are hereby amended to extend by one year the time limit on the effectiveness of
the plans.

Section 2. The redevelopment plans for The Alameda, Almaden Gateway, Alum
Rock Avenue, Century Center, Civic Plaza, East Santa Clara Street, Edenvale,
Guadalupe-Auzerais, Japantown, Julian-Stockton, Market Gateway, Neighborhood
Business Clusters, Olinder, Park Center, Pueblo Uno, Rincon de los Esteros, San
Antonio Plaza, Story Road, Strong Neighborhoods Initiative, and West San Carlos
Street are hereby amended to extend by one year the time limit on the repayment of




T-2029\229737.doc	                     '1
  RD:JCK:CER	                                                             11-4-03 / 10.2
  10/7/2003	                                                             Ord. No. 27011


  indebtedness or receipt of property taxes, if applicable, pursuant to Health and Safety       •



  Code Section 33670.

  Section 3.	If any part of this Ordinance is held to be invalid for any reason, such
  decision shall not affect the validity of the remaining portion of this Ordinance, and this
  City Council hereby declares that it would have passed the remainder of this Ordinance
  if such invalid portion thereof had been deleted.

 Section 4.	The City Clerk will certify to the passage of this Ordinance by the City
 Council and cause the same to be published once in a newspaper of general
 circulation, and it will take effect thirty (30) days after its final passage.


 PASSED FOR PUBLICATION of title this 4 th day of November, 2003, by the
 following vote:


         AYES:	              CAMPOS, CHAVEZ, CHIRCO, CORTESE, DANDO,
                             GREGORY, LeZOTTE, REED, YEAGER; GONZALES

         NOES:	              NONE


         ABSENT:	           WILLIAMS


         DISQUALIFIED: NONE         •




                                                         RON GONZAL
                                                         Mayor
 ATTEST:

4/À/      ,
        'tg ML
 PATRICIA L.
 City Clerk




 T-2029\229737.doc	                       2
                                                                                     6-11-02/7.1(d)
                                                                                      8-6-02/2.2(b)
                                   ORDINANCE NO. 26660

 AN ORDINANCE OF THE CITY OF SAN JOSE AMENDING THE JULIAN-STOCKTON
 REDEVELOPMENT PLAN, THE OLINDER REDEVELOPMENT PLAN, THE
 CENTURY CENTER REDEVELOPMENT PLAN, THE SAN ANTONIO PLAZA
 REDEVELOPMENT PLAN, THE RINCON DE LOS ESTEROS REDEVELOPMENT
                                            •PLAN, THE PUEBLO UNO REDEVELOPMENT PLAN, THE EDENVALE
 REDEVELOPMENT PLAN, THE GUADALUPE-AUZERAIS REDEVELOPMENT
 PLAN, THE MARKET GATEWAY REDEVELOPMENT PLAN, THE ALUM ROCK
 AVENUE REDEVELOPMENT PLAN, THE EAST SANTA CLARA. STREET
 REDEVELOPMENT PLAN, THE ALMADEN GATEWAY REDEVELOPMENT PLAN,
 THE STORY ROAD REDEVELOPMENT PLAN, THE ALAMEDA REDEVELOPMENT
 PLAN, THE WEST SAN CARLOS STREET REDEVELOPMENT PLAN, THE
 JAPANTOWN REDEVELOPMENT PLAN, THE MONTEREY CORRIDOR
 REDEVELOPMENT PLAN, THE PARK CENTER REDEVELOPMENT PLAN, THE
 CIVIC PLAZA REDEVELOPMENT PLAN, THE NEIGHBORHOOD BUSINESS
 CLUSTERS REDEVELOPMENT PLAN, AND THE AREA ADDED BY THE
 FIFTEENTH AMENDED CENTURY CENTER REDEVELOPMENT PLAN TO EFFECT
 THE MERGER OF SAID REDEVELOPMENT PROJECT AREAS AND MAKING
 CERTAIN FINDINGS


         WHEREAS, pursuant to the Community Redevelopment Law of the State of
 California found at California Health and Safety Code Section 33000 et. seq. (the
 "Redevelopment Law"), and specifically includirig Redevelopment Law Sections 33485
 through 33489, the Redevelopment Agency of the City of San Jose ("Agency") has
 submitted to this Council for consideration the proposed merger of the Fifteenth
 Amended Century Center Redevelopment Project Area ("Project Area"), which adds
 territory to the original Project Area, into the San Jose Merged Area Redevelopment
 Project ("Merger Amendment"); and

          WHEREAS, pursuant to the California Environmental Quality Act ("C.EQA"), the
  City of San Jose has prepared an Environmental Impact Report ("EIR") relating to the
  proposed adoption of the Mixed Use Environmental Impact Report for the Fifteenth
• Amended Century Center Redevelopment Project Area, which was accepted and
  certified to be complete by the San Jose Planning Commission on May 22, 2002, and
  which has been reviewed and considered by this Council and a separate resolution
  adopted making findings and adopting a Statement of Overriding Considerations
  pursuant to CEQA; and

        WHEREAS, the Agency has prepared and submitted to the Council a report
 accompanying the proposed Amended Plan and Merger Amendment prepared
 pursuant to Sections 33352 and 33457.1 of the Redevelopment Law ("Report to
 Council"), and this Council has reviewed said report; and




 175690_1
 08/06/02
                                                                                Ord.No. 26660
                                                                              6-11-02/7.1(d)
                                                                               8-6-02/2.2(b)
        WHEREAS, the Redevelopment Law requires that this Council consider the
proposed Amended Plan and Merger Amendment at a public hearing, which may be a
joint public hearing with the Agency Board; and

            WHEREAS, the Agency caused notice to be published, in form and substance
     and within the time and manner prescribed by the Redevelopment Law, that the Agency
     and this Council would conduct a joint public hearing on the proposed Amended Plan •
     and Merger Amendment at the hour of 1:30 p.m., or as soon thereafter as it may be
     heard, on the 11th day of June, 2002 in the Council Chambers of the City of San Jose,
     First and Mission Streets, San Jose, California; and

       WHEREAS, a copy of said Notice of Joint Public Hearing was mailed to the last
 known assessee of each parcel of land not owned by the Agency and to all residents
 and businesses within the added area of the Project Area by first class mail, and to the
 governing body of each taxing agency which levies taxes upon any property in the
 added area of the Project Area by certified mail; and
•	
        WHEREAS, the joint public hearing was held on June 11, 2002, and this Council
did consider the proposed Amended Plan and Merger Amendment at said hearing and
all oral and written evidence or testimony for or against the adoption thereof; and

      WHEREAS, the Amended Plan, the Merger Amendment and the Report to
 Council have been made available for inspection and copying to the public; and

      WHEREAS, four speakers appeared at the public hearing, three who spoke in
opposition to and one in favor of the Amended Plan and Merger Amendment; and

        WHEREAS, two written objections were received at or prior to the public hearing
(the "Objections"), and in accordance with the Redevelopment Law, this Council
considered such Objections and adopted written responses to such Objections prior to
the final adoption of this ordinance.

     NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF
SAN JOSE:

SECTION I.	Oral and written objections presented to the City Council in
connection with the public hearing, having been considered, are hereby overruled for
the specific reasons set forth in the written responses to the Objections adopted by
Council concurrently herewith.

SECTION II.	As required by Sections 33367 and 33457.1 of Redevelopment
Law and based on the information and analyses set forth in the Report to Council,
including the Preliminary Report and the written responses to the Objections,
incorporated herein by reference, the City Council does hereby find and determine:




                                              2
175690_1
08/06/02
                                                                               Ord. No. 26660
                                                                           6-11-02/7.1(d)
                                                                            8-6-02/2.2(b)
       A.     The City Council has heretofore adopted the Julian-Stockton
Redevelopment Plan, the Olinder Redevelopment Plan, the San Antonio Plaza
Redevelopment Plan, the Rincon de los Esteros Redevelopment Plan, the Pueblo Uno
Redevelopment Plan, the Edenvale Redevelopment Plan, the Guadalupe-Auzerais
Redevelopment Plan, the Century Center Redevelopment Plan, the Market Gateway
Redevelopment Plan, the Alum Rock Avenue Redevelopment Plan, the East Santa
Clara Street Redevelopment Plan, the Almaden Gateway Redevelopment Plan, the
Story Road Redevelopment Plan, The Alameda Redevelopment Plan, the West San
Carlos Street Redevelopment Plan, the Japantown Redevelopment Plan, the Monterey
Corridor Redevelopment Plan, the Park Center Redevelopment Plan, the Civic Plaza
Redevelopment Plan and the Neighborhood Business Clusters Redevelopment Plan
pursuant to Redevelopment Law;

        B.    The boundaries of each of the Project Areas mentioned hereinabove have
been duly recorded in the Office of the County Recorder of Santa Clara County, except
the Fifteenth Amended Century Center Redevelopment Project Area;

       C.    The City Council, by Ordinance No. 20348, adopted on September 30,
1980, authorized the merger of the Julian-Stockton, the San Antonio Plaza and the
Olinder Redevelopment Project Areas;

        D.    The City Council, by Ordinance No. 20677, adopted on August 25, 1981,
authorized the merger of the Rincon de los Esteros, Edenvale and Pueblo Uno
Redevelopment Project Areas with the Merged Area Redevelopment Project consisting
of the Julian-Stockton, San Antonio Plaza, and the Olinder Redevelopment Project
Areas;

       E.     The City Council, by Ordinance No. 21417, adopted on August 30, 1983,
authorized the merger of the Guadalupe-Auzerais Redevelopment Project Area with the
Merged Area Redevelopment Project consisting of the Julian-Stockton, San Antonio
Plaza, Olinder, Rincon de los Esteros, Edenvale and Pueblo Uno Redevelopment
Project Areas;

        F.     The City Council, by Ordinance No. 21496, adopted on November 15,
1983, authorized the merger of the Century Center and Market Gateway
Redevelopment Project Areas with the Merged Area Redevelopment Project consisting
of the Julian-Stockton, San Antonio Plaza, Olinder, Rincon de los Esteros, Edenvale,
Pueblo Uno and Guadalupe-Auzerais Redevelopment Project Areas;

       G.	     The City Council, by Ordinance No. 22761.1, adopted on March 17, 1988,
authorized the merger of the Alum Rock Avenue, East Santa Clara Street and Almaden
Gateway Redevelopment Project Areas with the Merged Area Redevelopment Project
consisting of the Julian-Stockton, San Antonio Plaza, Olinder, Rincon de los Esteros,
Edenvale, Pueblo Uno, Guadalupe-Auzerais, Century Center and Market Gateway
Redevelopment Project Areas;



                                          3
175690_1
08/06/02
                                                                              Ord. No. 26666
                                                                          6-11-0217.1(d)
                                                                           8-6-02/2.2(b)
       H.    The City Council, by Ordinance No. 23703, adopted on February 5, 1991,
authorized the merger of the Story Road Redevelopment Project Area with the Merged
Area Redevelopment Project consisting of the Julian-Stockton, San Antonio Plaza,
Olinder, Rincon de los Esteros, Edenvale, Pueblo Uno, Guadalupe-Auzerais, Century
Center, Market Gateway, Alum Rock Avenue, East Santa Clara Street and Almaden
Gateway Redevelopment Project Areas;

       I.    The City Council, by Ordinance No. 23732, adopted on March 5, 1991,
authorized the merger of The Alameda Redevelopment Project Area with the Merged
Area Redevelopment Project consisting of the Julian-Stockton, San Antonio Plaza,
Olinder, Rincon de los Esteros, Edenvale, Pueblo Uno, Guadalupe-Auzerais, Century
Center, Market Gateway, Alum Rock Avenue, East Santa Clara Street, Almaden
Gateway and Story Road Redevelopment Project Areas;

       J.    The City Council, by Ordinance No. 23761 adopted on March 21, 1991
authorized the merger of the West San Carlos Street Redevelopment Project Area with
the Merged Area Redevelopment Project consisting of the Julian-Stockton, San Antonio
Plaza, Olinder, Rincon de los Esteros, Edenvale, Pueblo Uno, Guadalupe-Auzerais,
Century Center, Market Gateway, Alum Rock Avenue, East Santa Clara Street,
Almaden Gateway, Story Road and The Alameda Redevelopment Project Areas;

      K.     The City CoUncil, by Ordinance No. 24508 adopted on December 2, 1993,
authorized the merger of the Japantown Redevelopment Project Area with the Merged
Area Redevelopment Project consisting of the Julian-Stockton, San Antonio Plaza,
Olinder, Rincon de los Esteros, Edenvale, Pueblo Uno, Guadalupe-Auzerais, Century
Center, Market Gateway, Alum Rock, East Santa Clara, Almaden Gateway, Story
Road, Alameda and the West San Carlos Street Redevelopment Project Areas;

       L.    The City Council, by Ordinance No. 24774 adopted on December 13,
1994, authorized the merger of the Monterey Corridor Redevelopment Project Area with
the Merged Area Redevelopment Project consisting of the Julian-Stockton, San Antonio
Plaza, Olinder, Rincon de los Esteros, Edenvale, Pueblo Uno, Guadalupe-Auzerais,
Century Center, Market Gateway, Alum Rock, East Santa Clara, Almaden Gateway,
Story Road, Alameda, West San Carlos Street, and Japantown Redevelopment Project
Areas;

      M.     The City Council, by Ordinance No. 25112 adopted on June 6, 1996,
authorized the merger of the Park Center Redevelopment Project Area with the. Merged
Area Redevelopment Project consisting of the Julian-Stockton, San Antonio Plaza,
Olinder, Rincon de los Esteros, Edenvale, Pueblo Uno, Guadalupe-Auzerais, Century
Center, Market Gateway, Alum Rock, East Santa Clara, Almaden Gateway, Story
Road, Alameda, West San Carlos Street, Japantown and Monterey Corridor
Redevelopment Project Areas;

       N.	   The City Council, by Ordinance No. 25888 adopted on June 8, 1999,
authorized the merger of the Civic Plaza Redevelopment Project Area with the Merged
Area Redevelopment Project consisting of the Julian-Stockton, San Antonio Plaza,
           	                              4
175690_1
08/06/02
                                                                                Ord. No. 26660'
                                                                              6-11-02/7.1(d)
                                                                               8-6-02/2.2(b)
Olinder, Rincon de los Esteros, Edenvale, Pueblo Uno, Guadalupe-Auzerais, Century
Center, Market Gateway, Alum Rock, East Santa Clara, Almaden Gateway, Story
Road, Alameda, West San Carlos Street, Japantown, Monterey Corridor and Park
Center Redevelopment Project Areas;

       0.	    The City Council, by Ordinance No. 26197 adopted on March 6, 2001,
authorized the merger of the Neighborhood Business Clusters Redevelopment Project
Area with the Merged Area Redevelopment Project consisting of the Julian-Stockton,
San Antonio Plaza, Olinder, Rincon de los Esteros, Edenvale, Pueblo Uno, Guadalupe-
Auzerais, Century Center, Market Gateway, Alum Rock, East Santa Clara, Almaden
Gateway, Story Road, Alameda, West San Carlos Street, Japantown, Monterey
Corridor, Park Center and Civic Plaza Redevelopment Project Areas;

        P.     The purpose of the authorized mergers is to permit the allocation of taxes
collected pursuant to. Redevelopment Law Section 33670 from each of the Project
Areas to the entire San Jose Merged Area for the purpose of paying the principal of and
interest on indebtedness incurred by the Agency to finance or refinance, in whole or in
part, such merged redevelopment project, except as provided in Section IV and V of
this Ordinance;

       Q.     The proposed amendments to the Redevelopment Plans are
economically sound and feasible. This finding is based upon the ordinances adopting
the respective Redevelopment Plans;

       R.    The effectuation of the amendments in order to provide for the Merger will
promote the public peace, health, safety and welfare of the community and effectuate
the purposes and policy of Redevelopment Law. This finding is based upon the
ordinances adopting the respective Redevelopment Plans;

       S.     The Amended Plan is consistent with the General Plan of the City of San
Jose, including, as determined by the Planning Commission of the City of San Jose on
May 22, 2002;

       T.	     The time limitation and, if applicable, the limitation on the number of
dollars to be allocated to the Agency that are contained in the Amended Plan are
reasonably related to the proposed projects to be implemented in the Project Area and
the San Jose Merged Area and to the ability of the Agency to eliminate blight within the
Project Area and the San Jose Merged Area. This determination is based on the
financial analysis contained in the Report to Council.

       SECTION III.	     The Julian-Stockton Redevelopment Project, the Olinder
Redevelopment Project, the San Antonio Plaza Redevelopment Project, the Rincon de
los Esteros Redevelopment Project, the Pueblo Uno Redevelopment Project, the
Edenvale Redevelopment Project, the Guadalupe-Auzerais Redevelopment Project, the
Century Center Redevelopment Project, the Market Gateway Redevelopment Project,
the Alum Rock Avenue Redevelopment Project, the East Santa Clara Street
Redevelopment Project, the Almaden Gateway Redevelopment Project, the Story Road

                                            5
175690_1
08/06/02
                                                                                 Ord. No. 26660
                                                                             6-11-02/7.1(d)
                                                                              8-6-02/2.2(b)
 Redevelopment Project, The Alameda Redevelopment Project, the West San Carlos
 Street Redevelopment Project, the Japantown Redevelopment Project, the Monterey
 Corridor Redevelopment Project, the Park Center Redevelopment Project, the Civic
 Plaza Redevelopment Project and the Neighborhood Business Clusters -
 Redevelopment Project are hereby merged.

        SECTION IV.	        Tax increments attributable to any of the Julian-Stockton
Redevelopment Project Area, the Olinder Redevelopment Project Area, the San
Antonio Plaza Redevelopment Project Area, the Rincon de los Esteros Redevelopment
Project Area, the Pueblo Uno Redevelopment Project Area, the Edenvale
Redevelopment Project Area, the Guadalupe-Auzerais Redevelopment Project Area,
the Century Center Redevelopment Project Area, the Market Gateway Redevelopment
Project Area, the Alum Rock Avenue Redevelopment Project Area, the East Santa
Clara Street Redevelopment Project Area, the Almaden Gateway Redevelopment
Project Area, the Story Road Redevelopment Project Area, The Alameda
Redevelopment Project Area, the West San Carlos Street Redevelopment Project Area,
the Japantown Redevelopment Area, the Monterey Corridor Redevelopment Project
Area, the Park Center Redevelopment Project Area, the Civic Plaza Redevelopment
Project Area and the Neighborhood Business Clusters Redevelopment Project Area
which are allocated to the Redevelopment Agency pursuant to Section 33670 shall be
first used to comply with the terms of any bond resolution of other agreement pledging
such taxes from such Project Areas.

       SECTION V.	         Except as provided in Section IV of this Ordinance, not less
than twenty percent (20%) of all taxes which are allocated to the Agency pursuant to
Section 33670 shall be used for the purposes set forth in Redevelopment Law Section
33334.2.

        SECTION VI.	         Except as provided in Section III of this Ordinance, the
Julian-Stockton Redevelopment Project, the Olinder Redevelopment Project, the San
Antonio Plaza Redevelopment Project, the Rincon de los Esteros Redevelopment
 Project, the Pueblo Uno Redevelopment Project, the Edenvale Redevelopment Project,
the Guadalupe-Auzerais Redevelopment Project, the Century Center Redevelopment
Project, the Market Gateway Redevelopment Project, the Altun Rock Redevelopment
Project, the East Santa Clara Street Redevelopment Project, the Almaden Gateway
Redevelopment Project, the Story Road Redevelopment Project, The Alameda
Redevelopment Project, the West San Carlos Street Redevelopment Project, the
Japantown Redevelopment Project, the Monterey Corridor Redevelopment Project, the
Park Center Redevelopment Project, the Civic Plaza Redevelopment Project and the
Neighborhood Business Clusters Redevelopment Project shall each continue under
their respective previously adopted Redevelopment Plans.

      SECTION VII .	-      This Ordinance supersedes all previous ordinances on the
same subject to the extent necessary to carry out the purposes of this Ordinance.

     SECTION VIII.	    The notice, public hearing and other requirements of the
Redevelopment Law have been met.

175690_1
08/06/02
                                                                                  Ord. No. 26660
                                                                              6-11-02/7.1(d)
                                                                               8-6-02/2.2(b)


       SECTION IX. 	The Merger Amendment is found to be necessary and
desirable, is hereby approved as submitted to the Council on June 11, 2002, and is
hereby adopted. This ordinance which amends all of the project areas set forth in
Section III is on file in the offices of the City Clerk and the Redevelopment Agency of
the City of San Jose.

      SECTION X'. 	The Executive Director is hereby directed to record with the
County Recorder of Santa Clara County a notice of the approval and adoption of the
Amended Plan and of the merging of the expanded Project Area with the San Jose
Merged Area pursuant to this Ordinance and the Ordinance approving the Amended
Plan adopted concurrently herewith. The notice shall contain a description of the
boundaries of the expanded Project Area and a statement that proceedings for
redevelopment of the expanded Project Area have been instituted under the
Redevelopment Law.

   • SECTION XI. 	If any part of this Ordinance is held to be invalid for any
reason, such decision shall not affect the validity of the remaining Ordinance, and this
Council hereby declares that it would have passed the remainder of this Ordinance if
such invalid portion thereof had been deleted.


PASSED FOR PUBLICATION OF TITLE on the 1 1 th day Of June                      • 2002 by
                                                                               ,
the following vote:
                          CAMPOS,. CHAVEZ, CORTESE, DANDO, DIQUISTO, LeZOTTE,
           AYES:	         SHIRAKAWA, WILLIAMS, YEAGER; GONZALES
           NOES:	         REED

           ABSENT:	       NONE

           DISQUALIFIED: NONE



ATTEST:


        tit(
Patricia L. O'H arn, City Clerk




                                            7
175690_1
08/06/02
                                                                          6-11-02/10.1(e)
                                                                            6-25-02/2.2(f)

                              ORDINANCE NO. 26663

AN ORDINANCE OF THE CITY OF SAN JOSE AMENDING THE JULIAN-STOCKTON
REDEVELOPMENT PLAN, THE OLINDER REDEVELOPMENT PLAN, THE SAN
ANTONIO PLAZA REDEVELOPMENT PLAN, THE RINCON DE LOS ESTEROS
REDEVELOPMENT PLAN, THE PUEBLO UNO REDEVELOPMENT PLAN, THE
EDENVALE REDEVELOPMENT PLAN, THE GUADALUPE-AUZERAIS
REDEVELOPMENT PLAN, THE MARKET GATEWAY REDEVELOPMENT PLAN,
THE CENTURY CENTER REDEVELOPMENT PLAN, THE ALUM ROCK AVENUE
REDEVELOPMENT PLAN, THE EAST SANTA CLAFtA STREET REDEVELOPMENT
PLAN, THE ALMADEN GATEWAY REDEVELOPMENT PLAN, THE STORY ROAD
REDEVELOPMENT PLAN, THE ALAMEDA REDEVELOPMENT PLAN, THE WEST
SAN CARLOS STREET REDEVELOPMENT PLAN, THE JAPANTOWN
REDEVELOPMENT PLAN, THE MONTEREY CORRIDOR REDEVELOPMENT PLAN,
THE PARK CENTER REDEVELOPMENT PLAN, THE CIVIC PLAZA
REDEVELOPMENT PLAN, THE NEIGHBORHOOD BUSINESS CLUSTERS
REDEVELOPMENT PLAN, AND THE STRONG NEIGHBORHOODS INITIATIVE
REDEVELOPMENT PLAN TO EFFECT THE MERGER OF SAID REDEVELOPMENT
PROJECT AREAS AND MAKING CERTAIN FINDINGS

       WHEREAS, pursuant to the Community Redevelopment Law of the State of
California found at California Health and Safety Code Section 33000 et. seq.	     -
("Redevelopment Law"), and specifically including Redevelopment Law Sections 33485
through 33489, the Redevelopment Agency of the City of San Jose ("Agency") has
submitted to this Council for consideration the proposed merger of the proposed Strong
Neighborhoods Initiative Redevelopment Project Area ("Project Area") into the San
Jose Merged Area Redevelopment Project ("Merger Amendment"); and

       WHEREAS, pursuant to the California Environmental Quality Act ("CEQA"), the
City of San Jose has prepared an Environmental Impact Report ("EIR") relating to the
proposed adoption of the Strong Neighborhoods Initiative Redevelopment Plan ("Plan
Adoption") and the Merger Amendment, which was accepted and certified to be
complete by the San Jose Planning Commission on May 22, 2002, and which has been
reviewed and considered by this Council and a separate resolution adopted making
findings pursuant to CEQA; and

       WHEREAS, the Agency has prepared and submitted to the Council a report
accompanying the proposed Plan Adoption and Merger Amendment prepared pursuant
to Sections 33352 and 33457.1 of the Redevelopment Law ("Report to Council"), and
this Council has reviewed said report; and

        WHEREAS, the Redevelopment Law requires that this Council consider the
proposed Plan Adoption and Merger Amendment at a public hearing, which may be a
joint public hearing with the Agency Board; and




175818_1
06/24/02
                                Ord. No. 26663
                                                                            6-11-02/10.1(e)
                                                                              6-25-02/2.2(f)

       WHEREAS, the Agency caused notice to be published, in form and substance
and within the time and manner prescribed by the Redevelopment Law, that the Agency
and this Council would conduct a joint public hearing on the proposed Plan Adoption
and Merger Amendment at the hour of 7:00 p.m., or as soon thereafter as it may be
heard, on the 11th day of June, 2002 in the Council Chambers of the City of San Jose,
First and Mission Streets, San Jose, California; and

      WHEREAS, a copy of said Notice of Joint Public Hearing was mailed to the last
known assessee of each parcel of land not owned by the Agency and to all residents
and businesses within said Project Area by first class mail, and to the governing body of
each taxing agency which levies taxes upon any property in said San Jose Merged
Area Project Areas by certified mail; and

       WHEREAS, the joint public was held on June 11, 2002, and this Council did
consider the proposed Plan Adoption and Merger Amendment at said hearing and all
oral and written evidence or testimony for or against the adoption thereof; and

       WHEREAS, the Strong Neighborhoods Initiative Redevelopment Plan ("Plan"),
the Merger Amendment and the Report to Council have been made available for
inspection and copying to the public; and

       WHEREAS, 120 speakers appeared at the public hearing and spoke in response
to the proposed Plan Adoption and Merger Amendment; and

       WHEREAS, 120 written objections and 1,302 petition signatures were received
at or prior to the public hearing (the "Objections"), and in accordance with the
Redevelopment Law, this Council considered such Objections and adopted written
responses to such Objections prior to the final adoption of this ordinance.

     NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF
SAN JOSE:

SECTION I. 	Oral and written objections presented to the City Council in
connection with the public hearing, having been considered, are hereby overruled for
the specific reasons set forth in the written responses to the Objections adopted by
Council concurrently herewith.

SECTION II.	As required by Sections 33367 and 33457.1 of Redevelopment
Law and based on the information and analyses set forth in the Report to Council,
including the Preliminary Report and the written responses to the Objections,
incorporated herein by reference, the City Council does hereby find and determine:

     A.	   The City Council has heretofore adopted the Julian-Stockton
Redevelopment Plan, the Olinder Redevelopment Plan, the San Antonio Plaza
Redevelopment Plan, the Rincon de los Esteros Redevelopment Plan, the Pueblo Uno
Redevelopment Plan, the Edenvale Redevelopment Plan, the Guadalupe-Auzerais

                                             2
175818_1
06/24/02
                                              Ord. No. 26663 	
                                                                         6-11-02/10.1 (e)
                                                                          6-25-02/2.2(0

Redevelopment Plan, the Century Center Redevelopment Plan, the Market Gateway
Redevelopment Plan, the Alum Rock Avenue Redevelopment.Plan, the East Santa
Clara Street Redevelopment Plan, the Almaden Gateway Redevelopment Plan, the
Story Road Redevelopment Plan, The Alameda Redevelopment Plan, the West San
Carlos Street Redevelopment Plan, the Japantown Redevelopment Plan, the Monterey
Corridor Redevelopment Plan, the Park Center Redevelopment Plan, the Civic Plaza
Redevelopment Plan, the Neighborhood Business Clusters Redevelopment Plan and
the Strong Neighborhoods Initiative Redevelopment Plan pursuant to Redevelopment
Law;

       B.    The boundaries of each of the Project Areas mentioned hereinabove have
been duly recorded in the Office of the County Recorder of Santa Clara County, except
the Strong Neighborhoods Initiative Redevelopment Project Area;

       C.    The City Council, by Ordinance No. 20348, adopted on September 30,
1980, authorized the merger of the Julian-Stockton, the San Antonio Plaza and the
Olinder Redevelopment Project Areas;

       D.     The City Council, by Ordinance No. 20677, adopted on August 25, 1981,
authorized the merger of the Rincon de los Esteros, Edenvale and Pueblo Uno
Redevelopment Project Areas with the Merged Area Redevelopment Project consisting
of the Julian-Stockton, San Antonio Plaza, and the Olinder Redevelopment Project
Areas;

       E.     The City Council, by Ordinance No. 21417, adopted on August 30, 1983,
authorized the merger of the Guadalupe-Auzerais Redevelopment Project Area with the
Merged Area Redevelopment Project consisting of the Julian-Stockton, San Antonio
Plaza, Olinder, Rincon de los Esteros, Edenvale and Pueblo Uno Redevelopment
Project Areas;

        F.    The City Council, by Ordinance No. 21496, adopted on November 15,
1983, authorized the merger of the Century Center and Market Gateway
Redevelopment Project Areas with the Merged Area Redevelopment Project consisting
of the Julian-Stockton, San Antonio Plaza, Olinder, Rincon de los Esteros, Edenvale,
Pueblo Uno and Guadalupe-Auzerais Redevelopment Project Areas;

      G.      The City Council, by Ordinance No. 22761.1, adopted on March 17, 1988,
authorized the merger of the Alum Rock Avenue, East Santa Clara Street and Almaden
Gateway Redevelopment Project Areas with the Merged Area Redevelopment Project
consisting of the Julian-Stockton, San Antonio Plaza, Olinder, Rincon de los Esteros,
Edenvale, Pueblo Uno, Guadalupe-Auzerais, Century Center and Market Gateway
Redevelopment Project Areas;

       H.	   The City Council, by Ordinance No. 23703, adopted on February 5, 1991,
authorized the merger of the Story Road Redevelopment Project Area with the Merged
Area Redevelopment Project consisting of the Julian-Stockton, San Antonio Plaza,

                                          3
175818.1
06/24/02
                                                Ord. No. 26663          6-11-02/10.1(e)
                                                                          6-25-02/2.2(f)

Olinder, Rincon de los Esteros, Edenvale, Pueblo Uno, Guadalupe-Auzerais, Century
Center, Market Gateway, Alum Rock Avenue, East Santa Clara Street and Almaden
Gateway Redevelopment Project Areas;

       I.    The City Council, by Ordinance No. 23732, adopted on March 5, 1991,
authorized the merger of The Alameda Redevelopment Project Area with the Merged
Area Redevelopment Project consisting of the Julian-Stockton, San Antonio Plaza,
Olinder, Rincon de los Esteros, Edenvale, Pueblo Uno, Guadalupe-Auzerais, Century
Center, Market Gateway, Alum Rock Avenue, East Santa Clara Street, Almaden
Gateway and Story Road Redevelopment Project Areas;

       J.    The City Council, by Ordinance No. 23761 adopted on March 21, 1991
authorized the merger of the West San Carlos Street Redevelopment Project Area with
the Merged Area Redevelopment Project consisting of the Julian-Stockton, San Antonio
Plaza, Olinder, Rincon de los Esteros, Edenvale, Pueblo Uno, Guadalupe-Auzerais,
Century Center, Market Gateway, Alum Rock Avenue, East Santa Clara Street,
Almaden Gateway, Story Road and The Alameda Redevelopment Project Areas;

       K.    The City Council, by Ordinance No. 24508 adopted on December 2, 1993,
authorized the merger of the Japantown Redevelopment Project Area with the Merged
Area Redevelopment Project consisting of the Julian-Stockton, San Antonio Plaza,
Olinder, Rincon de los Esteros, Edenvale, Pueblo Uno, Guadalupe-Auzerais, Century
Center, Market Gateway, Alum Rock, East Santa Clara, Almaden Gateway, Story
Road, Alameda and the West San Carlos Street Redevelopment Project Areas;

       L.    The City Council, by Ordinance No. 24774 adopted on December 13,
1994, authorized the merger of the Monterey Corridor Redevelopment Project Area with
the Merged Area Redevelopment Project consisting of the Julian-Stockton, San Antonio
Plaza, Olinder, Rincon de los Esteros, Edenvale, Pueblo Uno, Guadalupe-Auzerais,
Century Center, Market Gateway, Alum Rock, East Santa Clara, Almaden Gateway,
Story Road, Alameda, West San Carlos Street, and Japantown Redevelopment Project
Areas;

      M.     The City Council, by Ordinance No. 25112 adopted on June 6, 1996,
authorized the merger of the Park Center Redevelopment Project Area with the Merged
Area Redevelopment Project consisting of the Julian-Stockton, San Antonio Plaza,
Olinder, Rincon de los Esteros, Edenvale, Pueblo Uno, Guadalupe-Auzerais, Century
Center, Market Gateway, Alum Rock, East Santa Clara, Almaden Gateway, Story
Road, Alameda, West San Carlos Street, Japantown and Monterey Corridor
Redevelopment Project Areas;

       N.    The City Council, by Ordinance No. 25888 adopted on June 8, 1999,
authorized the merger of the Civic Plaza Redevelopment Project Area with the Merged
Area Redevelopment Project consisting of the Julian-Stockton, San Antonio Plaza,
Olinder, Rincon de los Esteros, Edenvale, Pueblo Uno, Guadalupe-Auzerais, Century
Center, Market Gateway, Alum Rock, East Santa Clara, Almaden Gateway, Story

                                          4
175818_1
06/24/02
                                                       Ord. No. 26663	
                                                                             6-11-02/10.1(e)
                                                                               6-25-0212.2M

Road, Alameda, West San Carlos Street, Japantown, Monterey Corridor and Park
Center Redevelopment Project Areas;

      0.	     The City Council, by Ordinance No. 26197 adopted on March 6, 2001,
authorized the merger of the Neighborhood Business Clusters Redevelopment Project
Area with the Merged Area Redevelopment Project consisting of the Julian-Stockton,
San Antonio Plaza, Olinder, Rincon de los Esteros, Edenvale, Pueblo Uno, Guadalupe-
Auzerais, Century Center, Market Gateway, Alum Rock, East Santa Clara, Almaden
Gateway, Story Road, Alameda, West San Carlos Street, Japantown, Monterey
Corridor, Park Center and Civic Plaza Redevelopment Project Areas;

       P.     The purpose of the authorized mergers is to permit the allocation of taxes
collected pursuant to Redevelopment Law Section 33670 from each of the Project
Areas to the entire San Jose Merged Area for the purpose of paying the principal of and
interest on indebtedness incurred by the Agency to finance or refinance, in whole or in
part, such merged redevelopment project, except as provided in Section IV and V of
this Ordinance;

       Q.    The proposed amendments to the Redevelopment Plans are
economically sound and feasible. This finding is based upon the ordinances adopting
the respective Redevelopment Plans;

       R.    The effectuation of the amendments in order to provide for the Merger will
promote the public peace, health, safety and welfare of the community and effectuate
the purposes and policy of Redevelopment Law. This finding is based upon the
ordinances adopting the respective Redevelopment Plans;

       S.      The Plan is consistent with the General Plan of the City of San Jose,
including, but not limited to, the City's housing element, which substantially complies
with the requirements of the California Government Code. This finding is based upon
the report of the Planning Commission of the City of San Jose;

       T.	    The time limitation and, if applicable, the limitation on the number of
dollars to be allocated to the Agency that are contained in the Plan are reasonably
related to the proposed projects to be implemented in the Project Area and the San
Jose Merged Area and to the ability of the Agency to eliminate blight within the Project
Area and the San Jose Merged Area. This determination is based on the financial
analysis contained in the Report to Council.

       SECTION III. 	The Julian-Stockton Redevelopment Project, the Olinder
Redevelopment Project, the San Antonio Plaza Redevelopment Project, the Rincon de
los Esteros Redevelopment Project, the Pueblo Uno Redevelopment Project, the
Edenvale Redevelopment Project, the Guadalupe-Auzerais Redevelopment Project, the
Century Center Redevelopment Project, the Market Gateway Redevelopment Project,
the Alum Rock Avenue Redevelopment Project, the East Santa Clara Street
Redevelopment Project, the Almaden Gateway Redevelopment Project, the Story Road


175818_1
06/24/02
                                                                 	
                                                Ord. No. 26663           6-11-02/10.1(e)
                                                                           6-25-02/2.2(f)

Redevelopment Project, The Alameda Redevelopment Project, the West San Carlos
Street Redevelopment Project, the Japantown Redevelopment Project, the Monterey
Corridor Redevelopment Project, the Park Center Redevelopment Project, the Civic
Plaza Redevelopment Project, the Neighborhood Business Clusters Redevelopment
Project and the Strong Neighborhoods Initiative Redevelopment Project are hereby
merged.

       SECTION IV.	Tax increments attributable to any of the Julian-Stockton
Redevelopment Project Area, the Olinder Redevelopment Project Area, the San
Antonio Plaza Redevelopment Project Area, the Rincon de los Esteros Redevelopment
Project Area, the Pueblo Uno Redevelopment Project Area, the Edenvale
Redevelopment Project Area, the Guadalupe-Auzerais Redevelopment Project Area,
the Century Center Redevelopment Project Area, the Market Gateway Redevelopment
Project Area, the Alum Rock Avenue Redevelopment Project Area, the East Santa
Clara Street Redevelopment Project Area, the Almaden Gateway Redevelopment
Project Area, the Story Road Redevelopment Project Area, The Alameda
Redevelopment Project Area, the West San Carlos Street Redevelopment Project Area,
the Japantown Redevelopment Area, the Monterey Corridor Redevelopment Project
Area, the Park Center Redevelopment Project Area, the Civic Plaza Redevelopment
Project Area, the Neighborhood Business Clusters Redevelopment Project Area and
the Strong Neighborhoods Initiative Redevelopment Project Area which are allocated to
the Redevelopment Agency pursuant to Section 33670 shall be first used to comply
with the terms of any bond resolution of other agreement pledging such taxes from
such Project Areas.

       SECTION V.	Except as provided in Section IV of this Ordinance, not less
than twenty percent (20%) of all taxes which are allocated to the Agency pursuant to
Section 33670 shall be used for the purposes set forth in Redevelopment Law Section
33334.2.

       SECTION VI.	Except as provided in Section III of this Ordinance, the
Julian-Stockton Redevelopment Project, the Olinder Redevelopment Project, the San
Antonio Plaza Redevelopment Project, the Rincon de los Esteros Redevelopment      •



Project, the Pueblo Uno Redevelopment Project, the Edenvale Redevelopment Project,
the Guadalupe-Auzerais Redevelopment Project, the Century Center Redevelopment
Project, the Market Gateway Redevelopment Project, the Alum Rock Redevelopment
Project, the East Santa Clara Street Redevelopment Project, the Almaden Gateway
Redevelopment Project, the Story Road Redevelopment Project, The Alameda
Redevelopment Project, the West San Carlos Street Redevelopment Project, the
Japantown Redevelopment Project, the Monterey Corridor Redevelopment Project, the
Park Center Redevelopment Project, the Civic Plaza Redevelopment Project, the
Neighborhood Business Clusters Redevelopment Project and the Strong
Neighborhoods Initiative Redevelopment Project shall each continue under their
respective previously adopted Redevelopment Plans.



                                           6
17581 8 1
06/24/0
                                                       Ord. No. 26663
                                                                             6-11-02/10.1(e)
                                                                               6-25-02/2.2(f)
      SECTION VII.	        This Ordinance supersedes all previous ordinances on the
same subject to the extent necessary to carry out the purposes of this Ordinance.

     SECTION VIII.	    The notice, public hearing and other requirements of the
Redevelopment Law have been met.

       SECTION IX.	             The Merger Amendment is found to be necessary and
desirable, is hereby approved as submitted to the Council on June 11, 2002, and is
hereby adopted. This ordinance which amends all of the project areas set forth in
Section III is on file in the offices of the City Clerk and the Redevelopment Agency of
the City of San Jose.

       SECTION X.	          The Executive Director is hereby directed to record with the
County Recorder of Santa Clara County a notice of the approval and adoption of the
Plan and of the merging of the Project Area with the San Jose Merged Area pursuant to
this Ordinance and the Ordinance approving the Plan adopted concurrently herewith.
The notice shall contain a description of the boundaries of the Project Area and a
statement that proceedings for redevelopment of the Project Area have been instituted
under the Redevelopment Law.

       SECTION Xl.	         If any part of this Ordinance is held to be invalid for any
reason, such decision shall not affect the validity of the remaining Ordinance, and this
Council hereby declares that it would have passed the remainder of this Ordinance if
such invalid portion thereof had been deleted.


PASSED FOR PUBLICATION OF TITLE on the 11th day of June 	 , 2002 by
the following vote:

           AYES:	            CAMPOS, CHAVEZ, CORTESE, EANDO, DIQUISTO
                             LeZOTTE, SHIRAKARA, WILLIAMS, YEAGER; GONZALES
           NOES:	            REED
           ABSENT:	          NONE

           DISQUALIFIED:	    NONE




ATTEST:	                                  Ron Gonzales, Mayor


             elet)
                .



Patricia L. O'Hearn, City Clerk




175818_1
06/24/02
                                                                             9-5-00/8.a(3)
                                                                            3-6-01/10.2(c)

                               ORDINANCE NO. 26197

                 AN ORDINANCE OF THE CITY OF SAN JOSE AMENDING THE
                 JULIAN-STOCKTON REDEVELOPMENT PLAN, THE OLINDER
                 REDEVELOPMENT PLAN, THE SAN ANTONIO PLAZA
                 REDEVELOPMENT PLAN, THE RINCON DE LOS ESTEROS
                 REDEVELOPMENT PLAN, THE PUEBLO UNO
                 REDEVELOPMENT PLAN, THE EDENVALE REDEVELOPMENT
                 PLAN, THE GUADALUPE-AUZERAIS REDEVELOPMENT PLAN,
                 THE MARKET GATEWAY REDEVELOPMENT PLAN, THE
                 CENTURY CENTER REDEVELOPMENT PLAN, THE ALUM
                 ROCK AVENUE REDEVELOPMENT PLAN, THE EAST SANTA
                 CLARA STREET REDEVELOPMENT PLAN, THE ALMADEN
                 GATEWAY REDEVELOPMENT PLAN, THE STORY ROAD
                 REDEVELOPMENT PLAN, THE ALAMEDA REDEVELOPMENT
                 PLAN, THE WEST SAN CARLOS STREET REDEVELOPMENT
                 PLAN, THE JAPANTOWN REDEVELOPMENT PLAN, THE
                 MONTEREY CORRIDOR REDEVELOPMENT PLAN, THE PARK
                 CENTER REDEVELOPMENT PLAN, THE CIVIC PLAZA
                 REDEVELOPMENT PLAN AND THE NEIGHBORHOOD
                 BUSINESS CLUSTERS REDEVELOPMENT PLAN TO EFFECT
                 THE MERGER OF SAID REDEVELOPMENT PROJECT AREAS
                 AND MAKING CERTAIN FINDINGS

       WHEREAS, pursuant to the Community Redevelopment Law of the State of
California found at California Health and Safety Code Section 33000 et. seq. (the
"Redevelopment Law"), and specifically including Redevelopment Law Sections 33485
through 33489, the Redevelopment Agency of the City of San Jose ("Agency") has
submitted to this Council for consideration the proposed merger of the proposed
Neighborhood Business Clusters Redevelopment Project Area ("Project Area") into the
San Jose Merged Area Redevelopment Project ("Merger Amendment"); and

      WHEREAS, pursuant to the California Public Resources Code, the City of San
Jose has prepared an Environmental Impact Report ("E1R") relating to the proposed
adoption of the Neighborhood Business Clusters Redevelopment Plan ("Plan
Adoption") and the Merger Amendment, and the ElR was accepted and certified to be
complete by the San Jose Planning Commission on August 9, 2000; and

          WHEREAS, this Council has reviewed and considered said E1R; and

       WHEREAS, the Agency has prepared and submitted to the Council a report
accompanying the proposed Plan Adoption and Merger Amendment prepared pursuant
to Sections 33352 and 33457.1 of the Redevelopment Law ("Report to Council"), and
this Council has reviewed said report; and


                                            1
136481_1
9-5-0018.a(3)
3-6-01/10.2(c)
                                                                              9-5-0018.a(3)
                                                                             3-6-01/10.2(c)

        WHEREAS, the Redevelopment Law requires that this Council consider the
proposed Plan Adoption and Merger Amendment at a public hearing, which may be a
joint public hearing with the Agency Board; and

       WHEREAS, the Agency caused notice to be published, in form and substance
and within the time and manner prescribed by the Redevelopment Law, that the Agency
and this Council would conduct a joint public hearing on the proposed Plan Adoption
and Merger Amendment at the hour of 1:30 p.m., or as soon thereafter as it may be
heard, on the 8th day of August, 2000 in the Council Chambers of the City of San Jose,
First and Mission Streets, San Jose, California; and

       WHEREAS, a copy of said Notice of Joint Public Hearing was mailed to the last
known assessee of each parcel of land not owned by the Agency and to all residents
and businesses within said San Jose Merged Area Project Areas by first class mail, and
to the governing body of each taxing agency which levies taxes . upon any property in
said San Jose Merged Area Project Areas by certified mail with return receipt
requested; and

       WHEREAS, the joint public hearing originally set for August 8, 2000 was
deferred to August 29, 2000 and was then deferred to the 5 th day of September, 2000,
and this Council did consider the proposed Plan Adoption and Merger Amendment at
said hearing and all oral and written evidence or testimony for or against the adoption
thereof; and

       WHEREAS, the Neighborhood Business Clusters Redevelopment Plan ("Plan"),
the Merger Amendment and the Report to Council have been made available for
inspection and copying to the public; and

      WHEREAS, four speakers appeared at the public hearing and spoke in
opposition to the Plan Adoption and Merger Amendment; and

        WHEREAS, three written objections were received at or prior to the public
hearing (the "Objections"), and in accordance with the Redevelopment Law, this
Council considered such Objections and adopted written responses to such Objections
prior to the final adoption of this ordinance.

          NOW, THEREFORE:

       SECTION I. 	Oral and written objections presented to the City Council in
connection with the public hearing, having been considered, are hereby overruled for
the specific reasons set forth in the written responses to the Objections adopted by
Council concurrently herewith.

          SECTION II.	As required by Sections 33367 and 33457.1 of
Redevelopment Law and based on the information and analyses set forth in the Report
to Council, including the Preliminary Report and the written responses to the

                                            2
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                                                                             9-5-00/8.a(3)
                                                                            3-6-01/10.2(c)

Objections, incorporated herein by reference, the City Council does hereby find and
determine:

      A.     The City Council has heretofore adopted the Julian-Stockton
Redevelopment Plan, the Olinder Redevelopment Plan, the San Antonio Plaza
Redevelopment Plan, the Rincon de los Esteros Redevelopment Plan, the Pueblo Uno
Redevelopment Plan, the Edenvale Redevelopment Plan, the Guadalupe-Auzerais
Redevelopment Plan, the Century Center Redevelopment Plan, the Market Gateway
Redevelopment Plan, the Alum Rock Avenue Redevelopment Plan, the East Santa
Clara Street Redevelopment Plan, the Almaden Gateway Redevelopment Plan, the
Story Road Redevelopment Plan, The Alameda Redevelopment Plan, the West San
Carlos Street Redevelopment Plan, the Japantown Redevelopment Plan, the Monterey
Corridor Redevelopment Plan, the Park Center Redevelopment Plan, the Civic Plaza
Redevelopment Plan and the Neighborhood Business Clusters Redevelopment Plan
pursuant to Redevelopment Law;

      B.     The boundaries of each of the Project Areas mentioned hereinabove have
been duly recorded in the Office of the County Recorder of Santa Clara County, except
the Neighborhood Business Clusters Redevelopment Project Area;

      C.     The City Council, by Ordinance No. 20348, adopted on September 30,
1980, authorized the merger of the Julian-Stockton, the San Antonio Plaza and the
Olinder Redevelopment Project Areas;

       D.     The City Council, by Ordinance No. 20677, adopted on August 25, 1981,
authorized the merger of the Rincon de los Esteros, Edenvale and Pueblo Uno
Redevelopment Project Areas with the Merged Area Redevelopment Project consisting
of the Julian-Stockton, San Antonio Plaza, and the Olinder Redevelopment Project
Areas;

       E.    The City Council, by Ordinance No. 21417, adopted on August 30, 1983,
authorized the merger of the Guadalupe-Auzerais Redevelopment Project Area with the
Merged Area Redevelopment Project consisting of the Julian-Stockton, San Antonio
Plaza, Olinder, Rincon de los Esteros, Edenvale and Pueblo Uno Redevelopment
Project Areas;

       F.     The City Council, by Ordinance No. 21496, adopted on November 15,
1983, authorized the merger of the Century Center and Market Gateway
Redevelopment Project Areas with the Merged Area Redevelopment Project consisting
of the Julian-Stockton, San Antonio Plaza, Olinder, Rincon de los Esteros, Edenvale,
Pueblo Uno and Guadalupe-Auzerais Redevelopment Project Areas;

       G.	    The City Council, by Ordinance No. 22761.1, adopted on March 17, 1988,
authorized the merger of the Alum Rock Avenue, East Santa Clara Street and Almaden
Gateway Redevelopment Project Areas with the Merged Area Redevelopment Project
consisting of the Julian-Stockton, San Antonio Plaza, Olinder, Rincon de los Esteros,

                                           3
136481_1
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3-6-01/10.2(c)
                                                                     -/J-	    1`../•	   Z.• .L	   /




                                                                              9-5-0018.a(3)
                                                                             3-6-01/10.2(c)

Edenvale, Pueblo Uno, Guadalupe-Auzerais, Century Center and Market Gateway
Redevelopment Project Areas;

       H.    The City Council, by Ordinance No. 23703, adopted on February 5, 1991,
authorized the merger of the Story Road Redevelopment Project Area with the Merged
Area Redevelopment Project consisting of the Julian-Stockton, San Antonio Plaza,
Olinder, Rincon de los Esteros, Edenvale, Pueblo Uno, Guadalupe-Auzerais, Century
Center, Market Gateway, Alum Rock Avenue, East Santa Clara Street and Almaden
Gateway Redevelopment Project Areas;

       I.    The City Council, by Ordinance No. 23732, adopted on March 5, 1991,
authorized the merger of The Alameda Redevelopment Project Area with the Merged
Area Redevelopment Project consisting of the Julian-Stockton, San Antonio Plaza,
Olinder, Rincon de los Esteros, Edenvale, Pueblo Uno, Guadalupe-Auzerais, Century
Center, Market Gateway, Alum Rock Avenue, East Santa Clara Street, Almaden
Gateway and Story Road Redevelopment Project Areas;

       J.    The City Council, by Ordinance No. 23761 adopted on March 21, 1991
authorized the merger of the West San Carlos Street Redevelopment Project Area with
the Merged Area Redevelopment Project consisting of the Julian-Stockton, San Antonio
Plaza, Olinder, Rincon de los Esteros, Edenvale, Pueblo Uno, Guadalupe-Auzerais,
Century Center, Market Gateway, Alum Rock Avenue, East Santa Clara Street,
Almaden Gateway, Story Road and The Alameda Redevelopment Project Areas;

       K.    The City Council, by Ordinance No. 24508 adopted on December 2, 1993,
authorized the merger of the Japantovvn Redevelopment Project Area with the Merged
Area Redevelopment Project consisting of the Julian-Stockton, San Antonio Plaza,
Olinder, Rincon de los Esteros, Edenvale, Pueblo Uno, Guadalupe-Auzerais, Century
Center, Market Gateway, Alum Rock, East Santa Clara, Almaden Gateway, Story
Road, Alameda and the West San Carlos Street Redevelopment Project Areas;

       L.    The City Council, by Ordinance No. 24774 adopted on December 13,
1994, authorized the merger of the Monterey Corridor Redevelopment Project Area with
the Merged Area Redevelopment Project consisting of the Julian-Stockton, San Antonio
Plaza, Olinder, Rincon de los Esteros, Edenvale, Pueblo Uno, Guadalupe-Auzerais,
Century Center, Market Gateway, Alum Rock, East Santa Clara, Almaden Gateway,
Story Road, Alameda, West San Carlos Street, and Japantown Redevelopment Project
Areas;

       M.    The City Council, by Ordinance No. 25112 adopted on June 6, 1996,
authorized the merger of the Park Center Redevelopment Project Area with the Merged
Area Redevelopment Project consisting of the Julian-Stockton, San Antonio .Plaza,
Olinder, Rincon de los Esteros, Edenvale, Pueblo Uno, Guadalupe-Auzerais, Century
Center, Market Gateway, Alum Rock, East Santa Clara, Almaden Gateway, Story
Road, Alameda, West San Carlos Street, Japantown and Monterey Corridor
Redevelopment Project Areas;

                                          4
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                                                                               9-5-00/8.a(3)
                                                                              3-6-01/10.2(c)



       N.	   The City Council, by Ordinance No. 25888 adopted on June 8, 1999,
authorized the merger of the Civic Plaza Redevelopment Project Area with the Merged
Area Redevelopment Project consisting of the Julian-Stockton, San Antonio Plaza,
Olinder, Rincon de los Esteros, Edenvale, Pueblo Uno, Guadalupe-Auzerais, Century
Center, Market Gateway, Alum Rock, East Santa Clara, Almaden Gateway, Story
Road, Alameda, West San Carlos Street, Japantown, Monterey Corridor and Park
Center Redevelopment Project Areas;

       0.	    The purpose of the authorized mergers is to permit the allocation of taxes
collected pursuant to Redevelopment Law Section 33670 from each of the Project
Areas to the entire San Jose Merged Area for the purpose of paying the principal of and
interest on indebtedness incurred by the Agency to finance or refinance, in whole or in
part, such merged redevelopment project, except as provided in Section IV and V of
this Ordinance;

       P.     The proposed amendments to the Redevelopment Plans are
economically sound and feasible. This finding is based upon the ordinances adopting
the respective Redevelopment Plans;

       Q.    The effectuation of the amendments in order to provide for the Merger will
promote the public peace, health, safety and welfare of the community and effectuate
the purposes and policy of Redevelopment Law. This finding is based upon the
ordinances adopting the respective Redevelopment Plans;

       R.      The Plan is consistent with the General Plan of the City of San Jose,
including, but not limited to, the City's housing element, which substantially complies
with the requirements of the California Government Code. This finding is based upon
the report of the Planning Commission of the City of San Jose;

       S.     The time limitation and, if applicable, the limitation on the number of
dollars to be allocated to the Agency that are contained in the Plan are reasonably
related to the proposed projects to be implemented in the Project Area and the San
Jose Merged Area and to the ability of the Agency to eliminate blight within the Project
Area and the San Jose Merged Area. This determination is based on the financial
analysis contained in the Report to Council.

       SECTION III.	     The Julian-Stockton Redevelopment Project, the Olinder
Redevelopment Project, the San Antonio Plaza Redevelopment Project, the Rincon de
los Esteros Redevelopment Project, the Pueblo Uno Redevelopment Project, the
Edenvale Redevelopment Project, the Guadalupe-Auzerais Redevelopment Project, the
Century Center Redevelopment Project, the Market Gateway Redevelopment Project,
the Alum Rock Avenue Redevelopment Project, the East Santa Clara Street
Redevelopment Project, the Almaden Gateway Redevelopment Project, the Story Road
Redevelopment Project, The Alameda Redevelopment Project, the West San Carlos
Street Redevelopment Project, the Japantown Redevelopment Project, the Monterey

                                            5
136481_1
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3-6-01/10.2(c)
                                                                       uLu. ny. GOIY/


                                                                             9-5-00/8.a(3)
                                                                            3-6-01/10.2(c)

Corridor Redevelopment Project, the Park Center Redevelopment Project, the Civic
Plaza Redevelopment Project and the Neighborhood Business Clusters
Redevelopment Project are hereby merged.

        SECTION IV.	        Tax increments attributable to any of the Julian-Stockton
Redevelopment Project Area, the Olinder Redevelopment Project Area, the San
Antonio Plaza Redevelopment Project Area, the Rincon de los Esteros Redevelopment
Project Area, the Pueblo Uno Redevelopment Project Area, the Edenvale
Redevelopment Project Area, the Guadalupe-Auzerais Redevelopment Project Area,
the Century Center Redevelopment Project Area, the Market Gateway Redevelopment
Project Area, the Alum Rock Avenue Redevelopment Project Area, the East Santa
Clara Street Redevelopment Project Area, the Almaden Gateway Redevelopment
Project Area, the Story Road Redevelopment Project Area, The Alameda
Redevelopment Project Area, the West San Carlos Street Redevelopment Project Area,
the Japantown Redevelopment Area, the Monterey Corridor Redevelopment Project
Area, the Park Center Redevelopment Project Area, the Civic Plaza Redevelopment
Project Area and the Neighborhood Business Clusters Redevelopment Project Area
which are allocated to the Redevelopment Agency pursuant to Section 33670 shall be
first used to comply with the terms of any bond resolution of other agreement pledging
such taxes from such Project Areas.

       SECTION V.	        Except as provided in Section IV of this Ordinance, not less
than twenty percent (20%) of all taxes which are allocated to the Agency pursuant to
Section 33670 shall be used for the purposes set forth in Redevelopment Law Section
33334.2.

        SECTION VI.	        Except as provided in Section III of this Ordinance, the
Julian-Stockton Redevelopment Project, the Olinder Redevelopment Project, the San
Antonio Plaza Redevelopment Project, the Rincon de los Esteros Redevelopment
Project, the Pueblo Uno Redevelopment Project, the Edenvale Redevelopment Project,
the Guadalupe-Auzerais Redevelopment Project, the Century Center Redevelopment
Project, the Market Gateway Redevelopment Project, the Alum Rock Redevelopment
Project, the East Santa Clara Street Redevelopment Project, the Almaden Gateway
Redevelopment Project, the Story Road Redevelopment Project, The Alameda
Redevelopment Project, the West San Carlos Street Redevelopment Project, the
Japantown Redevelopment Project, the Monterey Corridor Redevelopment Project, the
Park Center Redevelopment Project, the Civic Plaza Redevelopment Project and the
Neighborhood Business Clusters Redevelopment Project shall each continue under
their respective previously adopted Redevelopment Plans.

      SECTION VII.	        This Ordinance supersedes all previous ordinances on the
same subject to the extent necessary to carry out the purposes of this Ordinance.

     SECTION VIII.	    The notice, public hearing and other requirements of the
Redevelopment Law have been met.


                                           6
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                                                                                9-5-00/8.a(3)
                                                                               3-6-01/10.2(c)

       SECTION IX.	The Merger Amendment is found to be necessary and
desirable, is hereby approved as submitted to the Council on September 5, 2000, and
is hereby adopted. This ordinance which amends all of the project areas set forth in
Section III is on file in the offices of the City Clerk and the Redevelopment Agency of
the City of San Jose.

       SECTION X. 	The Executive Director is hereby directed to record with the
County Recorder of Santa Clara County a notice of the approval and adoption of the
Plan and of the merging of the Project Area with the San Jose Merged Area pursuant to
this Ordinance and the Ordinance approving the Plan adopted concurrently herewith.
The notice shall contain a description of the boundaries of the Project Area and a
statement that proceedings for redevelopment of the Project Area have been instituted
under the Redevelopment Law.

       SECTION Xl.	If any part of this Ordinance is held to be invalid for any
reason, such decision shall not affect the validity of the remaining Ordinance, and this
Council hereby declares that it would have passed the remainder of this Ordinance if
such invalid portion thereof had been deleted.


PASSED FOR PUBLICATION OF TITLE on the 5th day of September                     , 200 0 by
the following vote:
                     DANDO, DIAZ, DIQUISTO, FISCALINI, LeZ01it,
          AYES:	     POWERS, SIERAKAWA, WOODY; GON'ZAJZS

          NOES:	     NONE

          ABSENT:	   CHAVEZ

          ABSTAIN: NONE

          VACANT:	    DISTRICT 4




ATTEST:                                   Ron Gonzales, Mayor


      YA/716/4_,
Patricia L. O'Hearn, City Clerk




                                             7
136481_1
9-5-00/8.a(3)
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       Second Amended

Civic Plaza Redevelopment Plan


   The Redevelopment Agency of
        the City of San Jose




        December 7, 1999
REDEVELOPMENT PLAN CHRONOLOGY: CIVIC PLAZA



Original Plan
Adopted June 15, 1999
City Council Ordinance No. 25887

First Amendment
Adopted June 15, 1999
City Council Ordinance No. 25888
(Merger)

Second Amendment
Adopted December 7, 1999
City Council Ordinance No. 25998
(Delete tax increment)




950112
05/15/01
                         CITY COUNCIL AND
                   REDEVELOPMENT AGENCY BOARD


        Ron Gonzales, Mayor and Chair Redevelopment Agency Board
   Frank Fiscalini, Vice-Mayor and Vice Chair Redevelopment Agency Board

              Charlotte Powers               Cindy Chavez
              Manny Diaz                     Linda J. LeZotte
              George Shirakawa, Jr.          Alice Woody
              John Diquisto                  Pat Dando
              Margie Matthews


                         PLANNING COMMISSION
                         Brian Grayson, Chairperson
                                   	
              Gloria Chun Hoo                Sharon Godbolt
                            	
              William Ress                   Jay Ross
                               	
              Forrest Williams               James Zetterquist



                         Del Borgsdorf, City Manager

                   Susan F. Shick, Executive Director
            The Redevelopment Agency of the City of San Jose




           Second Amended Civic Plaza Redevelopment Plan
                      Adopted December 7, 1999
                   City Council Ordinance No. 25998




95011_2
5/21/99
                            TABLE OF CONTENTS


100. DESCRIPTION OF PROJECT 	                                            1

  101. INTRODUCTION 	                                                    1

  102. BOUNDARY DESCRIPTION 	                                            3

  103. SUMMARY OF PROPOSED ACTIONS 	                                     4

200. PERMITTED USES IN THE PROJECT AREA 	                                7

  201. LAND USE PLAN 	                                                   7

  202. GENERAL CONTROLS AND LIMITATIONS 	                                9

  203. CIRCULATION AND PUBLIC RIGHTS-OF-WAY 	                           10

  204. DEVELOPMENT STANDARDS AND DESIGN 	                               11

  205. EXISTING AND INTERIM USES 	                                      11

  206. NON-CONFORMING USES 	                                            11

  207. MINOR VARIATIONS 	                                               12

  208. BUILDING PERMITS 	                                               12

  209. MITIGATION OF ENVIRONMENTAL IMPACTS 	                            13

300. PROJECT PROPOSALS 	                                                14

  301. OPPORTUNITIES FOR OWNERS AND TENANTS 	                           14

  302. RULES FOR PARTICIPATION OPPORTUNITIES, PRIORITIES, AND PREFERENCES14

  303. PARTICIPATION AGREEMENTS 	                                       15

  304. CONFORMING OWNERS 	                                              15

  305. COOPERATION WITH PUBLIC BODIES 	                                 15

  306. LAND ACQUISITION 	                                               16

  307. REHABILITATION AND CONSERVATION 	                                17

  308. MOVING OF STRUCTURES 	                                           17

  309. ASSISTANCE IN FINDING OTHER LOCATIONS 	                          17

  310. RELOCATION PAYMENTS 	                                            17



95011_2
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  311. REPLACEMENT HOUSING 	                              18

  312. CLEARANCE OF PROPERTY 	                            18

  313. PREPARATION OF BUILDING SITES 	                    18

  314. PROPERTY MANAGEMENT 	                              18

  315. REAL PROPERTY DISPOSITION AND DEVELOPMENT 	        18

  316. DISPOSITION AND DEVELOPMENT AGREEMENTS 	           19

  317. DEVELOPMENT BY THE AGENCY 	                        20

  318. PERSONAL PROPERTY DISPOSITION 	                    20

400. PROJECT FINANCING 	                                  21

  401. PROPOSED FINANCING METHOD 	                        21

  402. TAX INCREMENT FUNDS 	                              21

  403. BONDS 	                                            21

  404. MERGER 	                                           22

  405. FINANCING LIMITATIONS 	                            22

500. ACTIONS BY THE CITY 	                                24

  501. ACTIONS BY THE CITY 	                              24

600. OTHER PROVISIONS 	                                   26

  601. NONDISCRIMINATION CLAUSES 	                        26

  602. EQUAL EMPLOYMENT OPPORTUNITY 	                     26

  603. ENFORCEMENT OF PLAN 	                              26

  604. DURATION OF PLAN 	                                 26

  605. SEVERABILITY 	                                     27

  606. PROCEDURE FOR AMENDMENT 	                          27

  607. MERGED AREA TIME AND TAX INCREMENT LIMITATIONS 	   27




95011_2
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FIGURES
1 - PROJECT BOUNDARY MAP 	         5
2 - LAND USE MAP 	                 8




                             III
95011_2
5/21/99
100. DESCRIPTION OF PROJECT
101. INTRODUCTION

The Project Area (as hereinafter defined) is located in an urbanized area within
or adjacent to the downtown core area of the City of San Jose. Most of the
approximately 32-acre Project Area is currently developed with commercial,
residential, and public/quasi public (churches and a school) land uses. The
residential properties in the Project Area contain mostly two-story residences
built between the 1860's and 1950's. The residences are generally Victorian or
"craftsman" in style, and many have been converted to multi-family residences.
The majority of the commercial land uses in the Project Area are located along
East Santa Clara Street and Fourth Street. East Santa Clara Street is lined with
one- to two-story commercial buildings. The public/quasi public land uses are
located throughout the Project Area and are generally two-story buildings.

The Project Area was studied for several years as a candidate site for the
consolidation of City governmental operations into one location. In April 1997,
the Mayor and City Council appointed the Civic Center Complex Relocation Task
Force to recommend a preferred site for the relocation and construction of a new
Civic Center Complex in Downtown San Jose. In June, 1997, the Task Force
recommended a site in the Project Area, in the block bounded by Santa Clara,
Fifth, San Fernando and Fourth Streets, for the preferred site for a new
Downtown Civic Center Complex.

On November 25, 1997, the City Council and the Board of Directors of the
Redevelopment Agency of the City of San Jose (the "Agency") approved the
Civic Plaza Survey Area, and authorized the Agency to study the Survey Area to
determine its suitability for the formation of a project area. The results of those
studies enabled the Agency to select the boundaries for the Project Area and to
determine that the Project Area is "blighted", as that term is used in the
Community Redevelopment Law of the California Health and Safety Code
("California Redevelopment Law"), and constitutes a burden on the community
which cannot reasonably be expected to be reversed or alleviated without
redevelopment assistance.

In response to conditions in the Project Area, this Redevelopment Plan ("Plan" or
"Redevelopment Plan") for the Civic Plaza Redevelopment Project ("Project") has
been prepared by the Agency pursuant to the California Redevelopment Law
and all applicable local laws and ordinances, in order to provide the Agency with
powers, duties, and obligations to implement the program generally formulated in
this Plan for the redevelopment, rehabilitation, and revitalization of the area
within the boundaries of the Project (the "Project Area").



95011
05/21/99
Because of the long-term nature of this Plan (30 years) and the need to retain in
the Agency the flexibility to respond to market and economic conditions, property
owner interests and development proposals, and opportunities for
redevelopment presented from time to time, this Plan does not present a precise
plan or select from among possible specific projects for the redevelopment,
rehabilitation and revitalization of any area within the Project Area, nor does this
Plan present an exhaustive list of potential programs and implementing actions,
which may be used to solve or alleviate the concerns and problems of the
community relating to the Project Area. Instead, this Plan presents a process
and a basic framework within which specific plans will be presented, specific
projects will be established and specific solutions will be proposed, and provides
tools to the Agency to fashion, develop and proceed with such specific plans,
projects and solutions.

The projects which are tentatively being considered for the Project Area in the
near-term by the Agency would change the character of the Project Area.
Proposed projects would replace some of the existing commercial and residential
land uses with a new San Jose City Hall/Municipal Services Complex, one or
more performing arts theaters, a child care center, a new City library, retail
space, a public plaza, and parking facilities. In the far-term, a general office
building and a mixed use commercial/residential shopping center may be
considered.

A series of public meetings were held in the Project Area prior to Plan adoption,
to discuss the Plan formation process. During the meetings, community
members, including residents, business owners and property owners, were
supportive of the proposed Agency efforts directed at revitalizing the Project
Area.

A Project Area Committee ("PAC") was formed in August and September, 1998,
and confirmed by the City Council on September 22, 1998. The PAC met eight
times over seven months prior to the adoption of this Plan. PAC concerns
included procedures for relocation of residences, businesses and non-profit
organizations, environmental impacts of proposed projects, anticipated
construction-related impacts, traffic and parking concerns. The Agency Board
and City Council reviewed summaries of all PAC meetings. The PAC approved
the draft Redevelopment Plan and on April 13, 1999 recommended its adoption.

The adoption of the Redevelopment Plan enables the Agency to commence
activities to eliminate blight, improve the Project Area's visual, physical, and
infrastructure environment and enhance and improve the Project Area's
economic base.

The Plan also authorizes the Agency's participation in certain proposed publicly
owned projects, if Agency assistance is necessary: a new San Jose City
Hall/Municipal Services Complex currently proposed to be approximately

                                         2
95011
05/21/99
550,000 sq. ft. with 995 on-site parking spaces; one or more performing arts
theaters with up to approximately 2,000 seats; a child care center of
approximately 10,000 sq. ft.; a new City library of up to 200,000 sq. ft.; a public
plaza; parking facilities containing approximately 800 parking spaces; and
infrastructure and streetscape improvements.

The purposes of the Community Redevelopment Law will be attained through,
and the goals of the Plan are:

A.    Elimination, by public and private actions, of blighting conditions in the
      Project Area.

B.    Strengthening the economic base of the Project Area and the community in
      general by providing necessary assistance to stimulate revitalization and
      new commercial expansion.

C. Replanning, redesign, and further development of underdeveloped areas
     that are economically stagnant, physically constrained, and/or underutilized.

      Rehabilitation or replacement of substandard and deteriorated public
      improvements in the Project Area.

E.    Provision of additional or improved recreational, cultural and educational
      facilities available to the community, such as libraries, theaters, parks and
      playgrounds.

F.    Provision of more adequate parking resources.

G.    Encouragement, by the provision of assistance in appropriate instances, of
      the rehabilitation and seismic strengthening of commercial buildings in the
      Project Area.

H.    Attraction of additional private investment and employment into the Project
      Area and adjoining areas.

I.	   In appropriate instances, analysis of and clean up of hazardous materials
      that would inhibit development.



102. BOUNDARY DESCRIPTION

The boundaries of the Project Area are delineated on the Project Boundary Map
shown in Figure 1 and are set forth in the legal description attached as Exhibit A.




                                         3
95011
05/21/99
103. SUMMARY OF PROPOSED ACTIONS

The Agency, in accordance with and pursuant to applicable law, will endeavor to
remedy as necessary, or cause to be remedied as necessary, conditions causing
blight in the Project Area through the use of any of the following approaches,
singly or in combination:

A.    Rehabilitation, alteration, modernization, general improvement, seismic
      upgrading, or any combination thereof (hereinafter called "rehabilitation") of
      certain existing structures.

B.    Reservation of certain areas for public streets, rights-of-way, parking
      facilities, and other public purposes.

C.    Acquisition of real property by purchase, gift, devise, exchange,
      condemnation, or any other lawful means.

D.    Relocation of the occupants presently residing in structures that are
      acquired or, as necessary, in structures subject to rehabilitation.

E.    Demolition and removal of certain existing buildings and structures on land
      acquired by the Agency.

F.    Sale or lease of all land acquired by the Agency for re-use in accordance
      with the Plan and such additional conditions as may be established by the
      Agency in any manner authorized by law in order to carry out the purpose
      of redevelopment.

G.    Coordination with proper authorities to promote a comprehensive
      development effort.

H.    Land use approval actions in conformance with the General Plan (as
      hereinafter defined) that are necessary to implement the Redevelopment
      Plan.

I.	   Installation and relocation of certain necessary site improvements, utilities,
      and facilities.




                                          4
95011
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                              _FIGILIE .1:
                         TROJECT 330UNDARY 11A1   ,




Civic Plaza Redevelopment Project Area

                                                          1-1 iIIII H
                                                              1



                                                                      •

                                                              I
                                                                              4.4
                                                              I a) I	     I
                                                              I 2c-:      	    a)
                                                                               $_
                                                                  •




                                                                               CJI
                                                                              LL1


                         St...John Street




                          F
                        Santa Clara Street

                                    L__




                1...	                   I	
                                             1 	 ' 	 '	   i
           \	
                   1    ,.	, 	
                           	:                I	 1 	 I	    i
                San Fernando Street
J.    Coordination with proper authorities and, where appropriate, assistance to
      such authorities, to insure an adequate transportation system and related
      facilities.

K.    Assistance in land assembly to stimulate private development and for
      public improvements consistent with the goals established in this
      Redevelopment Plan.

L.    Initiation of a rehabilitation program for privately owned properties,
      particularly those that have historical or architectural merit.

M.    Application of re-use/rehabilitation strategies that are consistent with the
      historical value of buildings in the Project Area.

N. Administration of the adopted rules for owner participation.

0. Administration of the adopted rules governing reasonable preference to
     persons who are engaged in business in the Project Area to reenter in
     business within the Project Area.

P.    Establishment of programs for commercial rehabilitation loans.

Q.    Assistance in analysis and clean up of hazardous materials.

R.    Development of public purpose projects as may be determined to benefit
      the Project Area, such as theaters, plazas, parks, playgrounds, parking
      facilities, and libraries.

S.    Utilization of any other technique or approach authorized by law necessary
      or convenient for the implementation of the Plan.




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200. PERMITTED USES IN THE PROJECT AREA
201. LAND USE PLAN

The purpose of this Redevelopment Plan is to direct development in a manner
which is consistent with, and which best supports, the San Jose 2020 General
Plan, as amended from time to time (hereinafter referred to as "General Plan").
The General Plan, by this reference, is hereby incorporated into this
Redevelopment Plan as if fully set forth herein.

The proposed land uses within the Project Area are those established by the
General Plan, with which this Plan conforms. It is the intention of this Plan that
the land uses permitted in the Project Area shall be as provided in the General
Plan as it currently exists or as it may from time to time be amended. Figure 2,
Land Use Map, shows the current land uses in the Project Area.

Residential densities and allowed land uses in the Project Area, as well as
limitations on building height and setbacks, are established by the General Plan
and zoning regulations. The General Plan does not identify any open space
within the Project Area. The Agency, under this Plan, is authorized to develop
appropriate public recreational space or public purpose projects as may be
determined and approved in accordance with California Redevelopment Law.

The general land use designations in the Project Area are described as follows:

A.	    General Commercial

This is a non-specialized commercial designation intended to permit
miscellaneous commercial uses. It includes both strip commercial areas along
major thoroughfares as well as freestanding commercial establishments.
Business and professional office uses are allowed within this category as well.
Shopping centers may be allowed but are not encouraged. Uses that have both
commercial and industrial characteristics such as self-service warehousing,
automobile lubrication, and other similar uses may be permitted provided that: 1)
They comply with commercial development standards; 2) do not adversely
impact nearby residential neighborhoods; and, 3) are not located within
pedestrian-oriented, or potentially pedestrian-oriented, retail commercial strips.




                                        7
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                           ec‘\
                            0




             fir
                          side

                   CPC?
         4,3
         (




                    \\


                                  Residential Support for the      Core Area
                                  Core Area (25+ DU/AC)
Penoral Plan Pesignations         Very High Perish/ Residelltial   General Commercial
P.IVIC Plop Project Aiva          (25- 4 0 DU/AC)
                                        FIGURE 2 :                 Public/Quasi-Public
                                     1, ANP   USE   MAP
B.     Residential Support for the Core (25+ DU/AC)

This land use designation is intended for very high density residential use (25+
Dwelling Units Per Acre) in and near the Downtown Core Area. This designation
permits development with commercial uses on the first two floors, with residential
use on upper floors, as well as wholly residential projects. Development within
this category is intended to expand the potential for residential development in
close proximity to central area jobs, and to create new consumer markets in the
Downtown area.

C.    Very High Density Residential (25-40 DU/AC)

This density is typified by three-story apartments or condominiums over parking.
This density is planned primarily near the Downtown Core Area, near commercial
centers with ready access to freeways and/or expressways and in the vicinity of
the light rail transit stations within the Intensification Corridors Special Strategy
Area.

D.     Public/Quasi-Public

This category is used to designate public land uses, including schools, colleges,
corporation yards, homeless shelters, libraries, publicly owned recreational
facilities such as youth centers, fire stations, water treatment facilities,
convention centers and auditoriums, museums, governmental offices and
airports. Joint development projects which include public and private
participation are allowed.

E.     Core Area

This designation includes office, retail, service, residential, and entertainment
uses in the Downtown Core Area. Retail sales should be located at ground level.
Lower intensity commercial uses are appropriate in outer parts of the Core Area,
peripheral to the high intensity Park Center/San Antonio Plaza area. These
outer areas are intended to provide locations for commercial activities that are
not necessarily a part of the most intensely developed portions of Downtown, but
which, for functional reasons need to be in close proximity to activities in the
Downtown Core Area.


202. GENERAL CONTROLS AND LIMITATIONS

All real property in the Project Area is made subject to the controls and
requirements of this Plan. No real property shall be developed, rehabilitated, or
otherwise changed after the date of the adoption of this Plan, except in
conformance with the provisions of this Plan and the General Plan.



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203. CIRCULATION AND PUBLIC RIGHTS-OF-WAY

Public rights-of-way and circulation corridors within the Project Area consist of
streets organized in a traditional grid pattern. The traffic circulation pattern for
the Project Area is established by the General Plan as designated on the Land
Use/ Transportation Diagram. The public streets that are partially in the area, as
shown in Figure 1, Project Boundary Map, are:
                              	
              St. John Street     	       Fifth Street
              Santa Clara	 Street         Sixth Street
              Third Street                Seventh Street
              Fourth Street

Additional public streets, alleys, and easements may be created in the Project
Area as needed for proper development. Existing streets, alleys, and easements
may also be abandoned, closed, or modified as necessary for proper
development of the Project. It is currently proposed that portions of Fifth Street
between San Fernando Street and St. John Street will be closed to vehicular
traffic.

Any changes in the existing street layouts shall be made in accordance with the
General Plan, the objectives of this Plan, and the City's design standards. Such
changes shall be effectuated in the manner prescribed by state and local law
and shall be guided by the following criteria:

A.    A balancing of the needs of proposed and potential new developments for
      adequate pedestrian and vehicular access, vehicular parking, and delivery
      loading docks with the similar needs of any existing developments
      permitted to remain. Such balancing shall take into consideration the rights
      of existing owners and tenants under the rules for owner and tenant
      participation adopted by the Agency for the Project Area and any
      Participation Agreements executed thereunder.

B.    The requirements imposed by such factors as topography, traffic safety,
      and aesthetics.

C. The potential need to serve not only the Project Area and new or existing
     developments but also to serve areas outside the Project Area by providing
     convenient and efficient vehicular access and movement.

Streetscape improvements may include the planting of street trees, medians,
and other landscaping, the location and placement of street furniture, and
improved pedestrian walkways.




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204. DEVELOPMENT STANDARDS AND DESIGN

All applications for development in the Project Area will be processed by the
Department of City Planning and Building through established procedures and
applicable City departments and commissions, including zoning, subdivision, site
and development permit review and approval.

No new buildings shall be constructed, and no existing improvements shall be
substantially modified, altered, repaired or rehabilitated except in accordance
with this Plan and controls contained herein. As a general rule, any proposed
use that involves new construction, exterior alteration, or paving will require a
development permit. The determination for need and type of permit will be
based on zoning district provisions applicable to the subject property along with
any other special provisions as stated in this Plan.

In the case of property that is the subject of a Disposition and Development or
Participation Agreement with the Agency, architecture, landscape, and site plans
and specifications for construction of improvements on the land shall also be
submitted to the Agency for review and approval, in addition to all applied City
requirements and permits.

The building intensities and standards proposed for the Project Area will be in
accordance with the City's General Plan and Zoning Ordinance and provisions of
this Redevelopment Plan. In addition, future development in the Project Area
shall be consistent with the goals of this Plan.


205. EXISTING AND INTERIM USES

All uses in existence in the Project Area at the time of adoption of this Plan shall
continue to be subject to all applicable City zoning and use controls in effect at
that time. The Project Area includes approximately 412 dwelling units.

Pending the ultimate development of land by developers and participants, interim
land use permitted in the Project Area shall be in conformance with the Zoning
Ordinance and General Plan.


206. NON CONFORMING USES
            -




The Agency may allow, through a Disposition and Development Agreement or
Participation Agreement, an existing use to remain which does not conform to
the provisions of this Plan, but is in conformance with the General Plan and
Zoning Ordinance, provided that such use is generally compatible with existing
and proposed developments and uses in the Project Area. The owner of such a
property must be willing to enter into a Participation Agreement and agree to the
imposition of such reasonable restrictions as may be necessary to protect the
development and use of the Project Area.
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 The Agency may authorize through such agreements additions, alterations,
 repairs, or other improvements in the Project Area for uses that do not conform
 to the provisions of this Plan where such improvements are within a portion of
 the Project Area where, in the determination of the Agency, such improvements
 would be compatible with the surrounding Project Area uses and development
 and are allowed under the General Plan.


 207. MINOR VARIATIONS

 Under exceptional circumstances, the Agency may allow a minor variation from
 the limits, restrictions, and controls established by this Plan as long as such
 variation is in conformance with the General Plan. In order to permit such
 variation, the Agency must determine that:

 A.     The application of certain provisions of this Plan would result in practical
        difficulties or unnecessary hardships inconsistent with the general purpose
        and intent of this Plan.

 B.     There are exceptional circumstances or conditions applicable to the
        property or to the intended development of the property which do not apply
        generally to other properties having the same standards, restrictions, and
        controls.

• C.	   Permitting a variation will not be materially detrimental to the public welfare
        or injurious to property or improvements in the area.

 D. Permitting a variation will not be contrary to the objectives of this Plan and
      will not conflict with the General Plan of the City.

 In allowing any such variation, the Agency shall impose such conditions as are
 necessary to protect the public peace, health, safety, or welfare, and to assure
 compliance with the purposes of this Plan.

 208. BUILDING PERMITS

 No permit shall be issued for the construction of any new building or for any
 construction on an existing building in the Project Area after the date of adoption
 of this Plan until the application for such permit has been made and processed in
 a manner consistent with all City requirements.

 The Agency may, through a Disposition and Development Agreement, or
 Participation Agreement, establish permit procedures and approvals in addition
 to those set forth above where required for the purposes of this Plan. Where
 such additional procedures and approvals are established, a building permit shall

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be issued only after the applicant for same has been granted all approvals
required by the City and the Agency at the time of application.


209. MITIGATION OF ENVIRONMENTAL IMPACTS

All new development and rehabilitation projects within the Project Area will be
processed in accordance with the California Environmental Quality Act and the
City of San Jose environmental regulations. Environmental impacts determined
to be significant or potentially significant may be mitigated to negate or reduce
the impact and adopted mitigation measures will be monitored in accordance
with the requirements of law.




                                       13
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300. PROJECT PROPOSALS
301, OPPORTUNITIES FOR OWNERS AND TENANTS

In accordance with this Plan and the rules for owner and tenant participation
adopted by the Agency pursuant to Community Redevelopment Law, persons
who are owners of real property in the Project Area shall be given a reasonable
opportunity to participate in redevelopment by: (1) retention of all or a portion of
their properties; (2) acquisition of adjacent or other properties in the Project Area;
(3) rehabilitation of existing buildings or improvements; (4) new development; or
(5) sale of their properties to the Agency, in appropriate instances, and
purchasing other properties in the Project Area.

The Agency shall extend reasonable preference to persons who are engaged in
business in the Project Area to participate in the redevelopment of the Project
Area, or to reenter into business within the redeveloped Project Area if they
otherwise meet the requirements prescribed in this Plan. The Agency shall also
extend reasonable preferences to tenants other than business tenants in the
Project to reenter within the redeveloped Project Area, if they otherwise meet the
requirements prescribed by this Plan. Such business, residential, institutional,
and semi-public tenants shall be given a reasonable opportunity, if they so
desire, to purchase and develop real property in the Project Area in accordance
with this Plan.

302. RULES FOR PARTICIPATION OPPORTUNITIES, PRIORITIES, AND
      PREFERENCES

In order to provide opportunities to owners and businesses to participate in the
redevelopment of the Project Area, the Agency has promulgated and adopted
rules for owner participation and the extension of preferences for business
reentry within the redeveloped Project Area. If conflicts develop between the
desires of participants for particular sites or land uses, the Agency is authorized
to establish reasonable priorities and preferences among the owners and
tenants. Some of the factors to be considered in establishing these priorities and
preferences may include a participant's length of occupancy in the area,
accommodation of as many participants as possible, similarity of land use, the
necessity to assemble sites for integrated, modern development, and conformity
of a participant's proposal with the intent and objectives of this Plan.

In addition to opportunities for participation by individual persons and firms,
participation shall be available for two or more persons, firms, or institutions to
join together in partnerships, corporations, or other joint entities.



                                         14
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Participation opportunities shall necessarily be subject to and limited by such
factors as: (1) the elimination and changing of some land uses; (2) the
construction, widening, or realignment of some streets; (3) the ability of
participants to finance acquisition and development or rehabilitation in
accordance with this Plan; (4) the reduction in the total number of individual
parcels in the Project Area; and (5) the construction of public facilities.

303. PARTICIPATION AGREEMENTS

The Agency may require that, as a condition to participate in redevelopment,
each participant shall enter into a binding agreement ("Participation Agreement")
with the Agency by which the participant agrees to rehabilitate, develop, use and
maintain the property in conformance with this Plan and to be subject to the
provisions hereof. In such agreements, participants who retain real property
shall be required to join in the recordation of such documents as may be
necessary to evidence that the provisions of this Plan and the Participation
Agreement are applicable to their properties. Whether or not a participant enters
into a Participation Agreement with the Agency, the provisions of this Plan are
applicable to all public and private property in the Project Area.

304. CONFORMING OWNERS

The Agency may, at its sole and absolute discretion, determine that certain real
property within the Project Area presently meets the requirements of this Plan,
and that the owner of such property shall be permitted to remain as a conforming
owner without a Participation Agreement with the Agency, provided such owner
continues to operate, use, and maintain the real property within the requirements
of this Plan. However, a conforming owner may be required by the Agency, at
the Agency's option, to enter into a Participation Agreement with the Agency in
the event that such owner desires to: (1) construct any additional improvements
or substantially alter or modify existing structures on any of the real property
described above as conforming; or (2) acquire additional property within the
Project Area.


305. COOPERATION WITH PUBLIC BODIES

Certain public bodies are authorized by state law to aid and cooperate, with or
without consideration, in the planning, undertaking, construction, or operation of
projects within the Project Area. The Agency shall seek the aid and cooperation
of such public bodies and shall attempt to coordinate this Plan with the activities
of such public bodies in order to accomplish the purposes of redevelopment and
the highest public good.

The Agency, by law, is not authorized to acquire real property owned by public
bodies without the consent of such public bodies. The Agency, however, will
                                        15
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seek the cooperation of all public bodies which own or intend to acquire property
in the Project Area. Any public body which owns or leases property in the
Project Area will be afforded all the privileges of owner and tenant participation if
such public body is willing to enter into a Participation Agreement with the
Agency. All plans for development of property in the Project Area by a public
body shall be subject to Agency approval.

The Agency may impose on all public bodies the planning and design controls
contained in this Plan to insure that present uses and any future development by
public bodies will conform to the requirements of this Plan. The Agency is
authorized to financially (and otherwise) assist any public entity in the cost of
public land, buildings, facilities, structures, or other improvements (within or
without the Project Area) which land, buildings, facilities, structures, or other
improvements are or would be of benefit to the Project Area.


306. LAND ACQUISITION

Except as specifically otherwise provided herein, the Agency may acquire, but is
not required to acquire, any real property located in the Project Area by any
means authorized by law.

It is in the public interest and is necessary, in order to eliminate the conditions
requiring redevelopment and in order to execute this Plan, for the power of
eminent domain to be employed by the Agency to acquire real property in the
Project Area which cannot be acquired by gift, devise, exchange, purchase, or
any other lawful method. Eminent domain proceedings, if used in the Project
Area by the Agency, must be commenced within twelve (12) years from the date
of adoption of this Plan by the San Jose City Council.

The Agency shall not acquire real property that is subject to a Participation
Agreement without the consent of the owner if the owner fully performs under the
Agreement. The Agency is authorized to acquire structures without acquiring the
land upon which those structures are located. The Agency is authorized to
acquire either the entire fee or any other interest in real property less than a fee.

The Agency shall not acquire real property on which an existing building is to be
continued on its present site and in its present form and use without the consent
of the owner unless: (1) such building requires structural alteration,
improvement, modernization, or rehabilitation; (2) the site, or lot on which the
building is situated, requires modification in size, shape, or use; or (3) it is
necessary to impose upon such property any of the controls, limitations,
restrictions, and requirements of this Plan, and the owner fails or refuses to
execute a Participation Agreement in accordance with the provisions of this Plan.

The Agency is not authorized to acquire real property owned by public bodies
which do not consent to the acquisition. The Agency is authorized, however, to
                                         16
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acquire public property transferred to private ownership before redevelopment of
the Project Area is completed unless the Agency and the private owner enter into
a Participation Agreement and the owner completes his responsibilities under the
Participation Agreement.

Where necessary in the execution of this Plan, the Agency is authorized to
acquire personal property in the Project Area by any lawful means, including
eminent domain to the extent authorized in this Plan.


307.   REHABILITATION AND CONSERVATION

The Agency is authorized to rehabilitate and conserve any building or structure in
the Project Area owned by the Agency. The Agency is also authorized to advise,
encourage, and assist in the rehabilitation and conservation of property in the
Project Area not owned by the Agency. The Agency is also authorized to
acquire, restore, rehabilitate, move, and conserve buildings of historic or
architectural significance, or for any redevelopment purpose, or to assist such
actions.

308.   MOVING OF STRUCTURES

As necessary in carrying out this Plan, the Agency is authorized to move, or to
cause to be moved, any structure or building to another location within or outside
the Project Area.

309. ASSISTANCE IN FINDING OTHER LOCATIONS

The Agency shall assist all persons (including individuals and families), business
concerns, and others displaced by an Agency project in finding other locations
and facilities. In order to carry out the Project with a minimum of hardship to any
displacees, the Agency shall assist such displacees in finding new locations that
are decent, safe, sanitary, within the financial means of the displacees, in
reasonably convenient locations, and otherwise suitable to their respective
needs. The Agency may also provide housing inside or outside the Project Area
for displaced persons.


310.   RELOCATION PAYMENTS

The Agency shall make relocation payments to persons (including individuals
and families), business concerns, and others displaced by Agency projects for
moving expenses and direct losses of personal property and additional relocation
payments as may be required by law. Such relocation payments shall be made
pursuant to the California Relocation Assistance Law (Government Code Section
7260 et seq.) and Agency rules and regulations adopted pursuant thereto. The

                                        17
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Agency may make such other payments as may be appropriate and for which
funds are available.


311. REPLACEMENT HOUSING

In accordance with Section 33334.5 of the Community Redevelopment Law,
whenever the dwelling units of persons and families of low- or moderate-income
are destroyed or removed from the low- and moderate-income housing market
as a part of an Agency project, the Agency shall within four (4) years of such
destruction or removal, rehabilitate, develop, or construct, or cause to be
rehabilitated, developed, or constructed, for rental or sale to persons and
families of low- or moderate-income an equal number of replacement dwelling
units at affordable housing costs within the Project Area or within the territorial
jurisdiction of the Agency in accordance with all of the provisions of Sections
33413 and 33413.5 of said Community Redevelopment Law.


312. CLEARANCE OF PROPERTY

The Agency is authorized to demolish and clear any structures or other
improvements from any real property in the Project Area as necessary to carry
out the purposes of this Plan.

313. PREPARATION OF BUILDING SITES

The Agency is authorized to prepare, or cause to be prepared, for building any
real property in the Project Area owned by the Agency. The Agency may cause,
provide for or undertake the installation or construction of streets, utilities, parks,
playgrounds, and other public improvements necessary to carry out this Plan.
The Agency is also authorized to construct foundations, platforms, and other like
structural forms necessary for the provision or utilization of air right sites for
buildings to be used for residential, commercial, industrial, public and other uses
provided in this Plan.


314. PROPERTY MANAGEMENT

Property acquired by the Agency in the Project Area shall be under the
management and control of the Agency during its ownership of such property.
Such property may be rented or leased by the Agency pending its conveyance
for redevelopment.


315 REAL PROPERTY DISPOSITION AND DEVELOPMENT

For the purposes of this Plan, the Agency is authorized to sell, lease, exchange,
subdivide, transfer, assign, pledge, encumber by mortgage or deed of trust, or

                                          18
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otherwise dispose of any interest in real property. To the extent permitted by
law, the Agency is authorized to dispose of real property by negotiated lease,
sale, or transfer without public bidding. Property acquired by the Agency for
rehabilitation and resale shall be offered for resale within one (1) year after
completion of rehabilitation or an annual report concerning such property shall be
published by the Agency as required by law.

Real property acquired by the Agency may be conveyed by the Agency without
charge to the City and, where beneficial to the Project Area, without charge to
any public body. All real property acquired by the Agency in the Project Area
shall be sold or leased by the Agency, except property conveyed by it to a public
body.

All purchasers or lessees of property acquired from the Agency shall be
obligated to use the property for the purposes designated in this Plan, to begin
and complete development of the property within a period of time which the
Agency establishes as reasonable and to comply with other conditions which the
Agency deems necessary to carry out the purposes of this Plan.


316. DISPOSITION AND DEVELOPMENT AGREEMENTS

To provide adequate safeguards to ensure that the provisions of this Plan will be
carried out and to prevent the recurrence of blight, all real property sold, leased,
or conveyed by the Agency, as well as all property subject to a Participation
Agreement, is subject to the provisions of this Plan.

The Agency may require that any transferee of property sold, leased, or
conveyed by the Agency shall enter into a binding disposition and development
agreement ("Disposition and Development Agreement"). The Agency shall
reserve such powers and controls in the Disposition and Development
Agreements as may be necessary to prevent transfer, retention or use of
property for speculative purposes and to ensure that development is carried out
pursuant to this Plan.

Leases, deeds, contracts, agreements, and declarations of restrictions of the
Agency may contain restrictions, covenants, covenants running with the land,
rights of reverter, conditions subsequent, equitable servitudes, or any other
provisions necessary to carry out this Plan. Where appropriate, as determined
by the Agency, such documents, or portions thereof, shall be recorded in the
Office of the County Recorder.

All real property in the Project Area sold, leased, or conveyed to or by the
Agency, as well as all property subject to a Participation Agreement, shall be
subject to the restriction that there shall be no discrimination or segregation
based upon race, sex, color, age, religion, creed, marital status, sexual
orientation, disability, ethnicity, ancestry, or national origin in the sale, lease,
                                         19
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sublease, transfer, use, occupancy, tenure, or enjoyment of such property. Such
property shall be expressly made subject, by appropriate documents, to the
restriction that all deeds, leases, or contracts for the sale, lease, sublease, or
other transfer of such property shall contain such non-discrimination and non-
segregation clauses as required by law.


317. DEVELOPMENT BY THE AGENCY

To the extent now or hereafter permitted by law, the Agency is authorized to pay
for, develop, or construct any publicly-owned building, facility, structure, or other
improvement either within or without the Project Area, for itself or for any public
body or entity, which buildings, facilities, structures, or other improvements are or
would be of benefit to the Project Area or the immediate neighborhood.
Specifically, the Agency may pay for, install, or construct buildings, facilities,
structures, and other improvements and may acquire or pay for the land required
therefore. Without limiting the foregoing, Agency participation in the funding and
construction of the public projects described in Section 101, above, is expressly
authorized in this Plan.

In addition to the public improvements authorized under this Section 317, the
Agency is authorized to install and construct, or to cause to be installed and
constructed, within or without the Project Area, for itself or for any public body or
entity for the benefit of the Project Area, public improvements and public utilities,
including, but not limited to, the following: (1) over - and underpasses;
(2) sewers; (3) natural gas distribution systems; (4) water distribution systems;
(5) parks, plazas, and pedestrian paths; (6) playgrounds and recreational
facilities; (7) parking facilities; (8) landscaped areas; (9) educational and cultural
improvements; and (10) street improvements.

The Agency may enter into contracts, leases, and agreements with the City or
other public body or entity pursuant to this Section 317, and the obligation of the
Agency under such contract, lease or agreement shall constitute an
indebtedness of the Agency which may be made payable out of the taxes levied
in the San Jose Merged Area Redevelopment Project and/or in the Project Area
and allocated to the Agency under subdivision (b) of Section 33670 of the
Community Redevelopment Law, or out of any other available funds.


318. PERSONAL PROPERTY DISPOSITION

For the purposes of this Plan, the Agency is authorized to lease, sell, exchange,
transfer, assign, pledge, encumber, or otherwise dispose of any interest in
personal property that is acquired by the Agency.




                                          20
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4OO PROJECT FINANCING

401. PROPOSED FINANCING METHOD

The Agency is authorized to finance this Project with financial assistance from
the City, State of California, federal government, tax increment funds from the
San Jose Merged Area Redevelopment Project, interest income, Agency bonds,
donations, loans from private financial institutions, proceeds from the lease or
sale of Agency-owned property and any other available source, public or private.

The Agency is also authorized to obtain advances, borrow funds, and create
indebtedness in carrying out this Plan. The principal and interest on such
advances, funds, and indebtedness may be paid from tax increments from the
San Jose Merged Area Redevelopment Project or any other funds available to
the Agency. Advances and loans for survey and planning and for the operating
capital for administration of this Project may be provided by the City until
adequate tax increment or other funds are available, or sufficiently assured, to
repay the advances and loans and to permit borrowing adequate working capital
from sources other than the City. The City, as it is able, may also supply
additional assistance through City loans and grants for various public facilities.

The City or any other public agency may expend money to assist the Agency in
carrying out this Project. As available, funds from the state and county may be
used for street improvements and public transit facilities.

402.   TAX INCREMENT FUNDS

The division and allocation of taxes pursuant to Section 33670 of Community
Redevelopment Law shall not apply to any taxes levied upon taxable property in
this Project Area.


403. BONDS

The Agency is authorized to issue bonds from time to time, if it deems it
appropriate to do so, in order to finance all or any part of the Project. Neither the
members of the Agency nor any persons executing the bonds are liable
personally on the bonds by reason of their issuance.

The bonds and other obligations of the Agency are not a debt of the City or the
state, nor are any of its political subdivisions liable for them, nor in any event
shall the bonds or obligations be payable out of any funds or properties other
than those of the Agency, and such bonds and other obligations shall so state on
their face. The bonds do not constitute an indebtedness within the meaning of
any constitutional or statutory debt limitation or restriction.

                                         21
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404. MERGER

A.    Pursuant to Section 33486 of the California Health and Safety Code, this
      Project has been merged with the Julian-Stockton Redevelopment Project,
      the Olinder Redevelopment Project, the San Antonio Plaza Redevelopment
      Project, the Rincon de los Esteros Redevelopment Project (exclusive of the
      property added to the Rincon de los Esteros Redevelopment Project on
      November 5, 1991, which was not merged), the Pueblo Uno
      Redevelopment Project, the Edenvale Redevelopment Project, the
      Japantown	       Redevelopment	     Project,	   the	    Guadalupe-Auzerais
      Redevelopment Project, the Century Center Redevelopment Project, the
      Market Gateway Redevelopment Project, the Alum Rock Avenue
      Redevelopment Project, the East Santa Clara Street Redevelopment
      Project, the Almaden Gateway Redevelopment Project, The Alameda
      Redevelopment Project, the West San Carlos Street Redevelopment
      Project, the Story Road Redevelopment Project, the Japantown
      Redevelopment Project, the Monterey Corridor Redevelopment Project,
      and the Park Center Redevelopment Project to permit the allocation of
      taxes from the San Jose Merged Area Redevelopment Project for the
      purpose of paying the principal of and interest on loans, monies advanced
      to, or indebtedness (whether funded, refunded, assumed, or otherwise)
      incurred by the Redevelopment Agency to finance or refinance, in whole or
      in part, this redevelopment project except as provided in Sections B and C,
      below.

B.    Taxes attributable to the aforementioned Redevelopment Project Areas
      which are allocated to the Agency pursuant to Section 33670 shall be first
      used to comply with the terms of any bond resolution or other agreement
      pledging such taxes from such Redevelopment Project Area.

C. Except as provided in Section B, above, not less than twenty percent (20%)
     of all taxes which are allocated to the Agency pursuant to Section 33670
     shall be used for the purposes set forth in California Health and Safety
     Code Section 33334.2

405. FINANCING LIMITATIONS

A Any loans, advances or indebtedness to finance this Project Area in whole
    or in part shall be established before that date that is twenty (20) years after
    the effective date of the ordinance adopting this Plan, provided that
    repayment of such loans, advances or indebtedness may extend beyond
    this date.

B. Pursuant to Sections 33333.2.(a) (2) of the Health and Safety Code, the
     effectiveness of this Plan shall terminate on that date that is thirty (30) years
     after the effective date of the ordinance adopting this Plan. After such date,
                                          22
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05/21/99
     the Agency shall have no authority to act pursuant to this Plan, except to
     pay previously incurred indebtedness, to enforce existing covenants,
     contracts or other obligations, and to take any other action that may
     otherwise be permitted by law.

C.   Pursuant to Sections 33333.2(a) (3) of the Health and Safety Code, the
     Agency shall not pay indebtedness or receive property taxes pursuant to
     Section 33670 after that date that is forty-five (45) years after the effective
     date of the ordinance adopting this Plan, unless otherwise permitted by law.

D.   Pursuant to Section 33486 of the Health and Safety Code, there shall be
     divided and allocated to the Agency under Sections 33670 and 33333.2. of
     the Health and Safety Code of the State of California, an amount no greater
     than Seven Billion Six Hundred Million Dollars ($7,600,000,000), for the
     Merged Area Redevelopment Project.




                                         23
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05/21/99
500. ACTIONS BY THE CITY
501. ACTIONS BY THE CITY

The City shall aid and cooperate with the Agency in carrying out this Plan and
shall take all actions necessary to ensure the continued fulfillment of the
purposes of this Plan and to prevent the recurrence or spread in the Project Area
of conditions causing blight. Actions that may be taken by the City at the request
of the Agency shall include, but not be limited to, the following:

A.    Institution and completion of proceedings for opening, closing, vacating,
      widening, or changing the grades of streets, alleys, and other public rights-
      of-way and for other necessary modifications of the streets, the street
      layout, and other public rights-of-way in the Project Area. Such actions by
      the City shall include the requirement of abandonment, removal, and
      relocation by the public utility companies of their operations in public rights-
      of-way as appropriate to carry out this Plan, provided that nothing in this
      Plan shall be construed to require the cost of such abandonment, removal,
      and relocation to be borne by other than those legally required to bear such
      costs.

B.    Institution and completion of proceedings necessary for changes and
      improvements in private and public-owned public utilities within or affecting
      the Project Area.

C.    Imposition wherever necessary (by conditional use permits or other means)
      of appropriate controls within the limits of this Plan upon parcels in the
      Project Area to ensure their proper development and use.

D.    Provision for administrative enforcement of this Plan by the City after
      redevelopment. The City and the Agency may develop and provide for
      enforcement of a program for continued maintenance by owners of real
      property, both public and private, within the Project Area throughout the
      duration of this Plan.

E.    Performance of the above actions and of all other functions and services
      normally rendered relating to public peace, health, safety, welfare, and
      physical development in accordance with a schedule that will permit the
      redevelopment of the Project Area to be commenced and carried to
      completion without unnecessary delays.

F.   The undertaking and completing of any other proceedings necessary to
     carry out the Project.



                                         24
95011
05/21/99
The foregoing actions to be taken by the City do not involve or constitute any
commitment for financial outlays by the City.




                                      25
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05/21/99
600. OTHER PROVISIONS
601. NONDISCRIMINATION CLAUSES

All deeds, leases, or contracts, which the Agency proposes to enter into with
respect to the sale, lease, sublease, transfer, use, occupancy, tenure, or
enjoyment of any land in the Project Area shall contain the nondiscrimination
clauses prescribed in Section 33436 of the California Community
Redevelopment Law as amended from time to time, which provide that any
lessee, grantee, or other contracting party, by and for itself, its heirs, executors,
administrators, assigns, and all persons claiming through any of them, shall
covenant that there shall be no discrimination against or segregation of any
person or groups of persons on account of race, sex, color, age, religion, creed,
marital status, sexual orientation, disability, ethnicity, ancestry or national origin
in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the
premises.

602. EQUAL EMPLOYMENT OPPORTUNITY

It is the policy of the Agency to eliminate employment discrimination against any
person or groups of persons because of race, sex, color, age, religion, creed,
marital status, sexual orientation, disability, ethnicity, ancestry, or national origin
to the extent allowed by law.


603. ENFORCEMENT OF PLAN

The provisions of the Plan and other documents formulated pursuant thereto
may be enforced by the Agency in any manner authorized by law. Remedies
may include, but are not limited to, specific performance, damages, reentry,
injunctions, or any other remedies. Any recorded provisions which are expressly
for the benefit of owners of property in the Project Area may be enforced by such
owners.


604. DURATION OF PLAN

The duration of this Plan is set forth in Section 405 above. Any declaration of
restrictions pursuant to this Plan may contain provisions for the extension of such
declaration of restrictions for successive periods. Any contract or agreement for
rehabilitation, owner participation, or redevelopment of property within the
Project Area may require that the property shall be devoted to the uses specified
in the Plan for the duration of the Plan.




                                          26
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05/21/99
605. SEVERABILITY

If any provision, section, subsection, subdivision, sentence, clause, or phrase of
the Plan is for any reason held to be invalid or unconstitutional, such decision
shall not affect the validity of the remaining portion or portions of the Plan.


606. PROCEDURE FOR AMENDMENT

This Plan may be amended in any manner as is now or hereafter permitted by
law.


607. MERGED AREA TIME AND TAX INCREMENT LIMITATIONS

Property taxes allocated to the Agency from any redevelopment area in the San
Jose Merged Area Redevelopment Project pursuant to Section 33670 of the
California Health and Safety Code may be used in the Project Area to repay
loans, advances, or indebtedness incurred in the Project Area. The time
limitations on the receipt of such tax increment by the Agency are as set forth in
the individual redevelopment plans for the project areas that comprise the
Merged Area Redevelopment Project.




                                       27
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                                 Exhibit A




            REPORT ACCOMPANYING THE
        SECOND AMENDMENT TO THE CIVIC PLAZA
               REDEVELOPMENT PLAN




This Report Accompanying the proposed Second Amendment to the Civic Plaza
Redevelopment Plan has been prepared in accordance with Sections 33352 and
33457.1 of California Community Redevelopment Law.




           The Redevelopment Agency of the City of San Jose

                             December 1999
                                    TABLE OF CONTENTS


   Introduction	                                                    1


  A.	     Information required by Section 33352 (a) of California
          Community Redevelopment Law	                              1

          1.       Reasons for Amendment of the Project Area
          2.       Project Description
          3.	      How the Project will Alleviate Blight

  B.	     A description of the physical and economic
                                                    	
          conditions that exist in the Project Area                 1
                                	
  C.      Implementation Plan                                       1

  D.      Explanation of why tax increment financing is
          needed to eliminate blight

  E.      Proposed method of financing	                             2

  F.      Relocation Plan	                                          2

  G.	     Analysis of Preliminary Plan	                             2

• H.	     Report and recommendations of the Planning Commission 	   2

  I.      Community consultation	                                   2

  J.      General Plan conformance	                                 2

  K.      Environmental review	                                     3

  L.      Report of the County Fiscal Officer	                      3

  M.      Neighborhood Impact Report	                               3

  N.     Analysis of the Report of the County Fiscal Officer 	      3
Report Accompanying Proposed Second Amendment
to the Civic Plaza Redevlopment Plan
December 1999


INTRODUCTION

The purpose of this Report Accompanying the Proposed Second Amendment of the
Civic Plaza Redevelopment Plan, is to provide the legislative body an assessment of the
purpose and impacts of the proposed Second Amendment of the Civic Plaza
Redevelopment Plan. This report has been prepared in accordance with Sections
33457.1 and 33352 of California Community Redevelopment Law (CRL).

As provided in CRL Section 33457.1, the reports and information required by CRL
Section 33352 must be prepared and submitted to the City Council prior to the hearing
on the proposed plan amendment to the extent warranted by the proposed plan
amendment. Set forth below is each matter specified in CRL Section 33352 to be
submitted to the City Council with an indication of its applicability to the proposed
Second Amendment to the Civic Plaza Redevelopment Plan.


A.        Information Required by Section 33352 (a) of the California Community
          Redevelopment Law (CRL)

          The Civic Plaza Redevelopment Plan was approved in June, 1999. Under the
          current Redevelopment Plan, tax increment would be collected by the Agency
          from the Project Area. The second amendment would eliminate collection of tax
          increment by the Agency from the Project Area. No other changes to the Plan are
          proposed by this Second Amendment.

B.        Description of the Physical and Economic Conditions Existing in the Area

          Not Applicable.

C.        Implementation Plan

         The adopted Civic Plaza Five-Year Implementation Plan has been amended to
         reflect the proposed change in the Second Amendment to the Redevelopment
         Plan. The proposed Amended Five-Year Implementation Plan is being submitted
         for Agency Board for approval at the public hearing on the Second Amendment
         to the Plan, and is attached to the December 7, 1999 Agency Board Report as
         Exhibit B.

D.       Why the Elimination of Blight and the Redevelopment of the Project Area
         Cannot be Expected to be Accomplished by Private Enterprise Action
         Alone or by the Legislative Body's Use of Financing Alternatives Other
         Than Tax Increment Financing.

          Not applicable.




rpt-accom.DOC	                               1
Report Accompanying Proposed Second Amendment
to the Civic Plaza Redevlopment Plan
December 1999


E.       Proposed Method of Financing

         The proposed method of redevelopment financing is described in Section 401 of
         the proposed Second Amendment to the Civic Plaza Redevelopment Plan.
         Redevelopment activity will be financed through the use of tax increment funds
         generated in the San Jose Merged Area Redevelopment Project. The deletion of
         tax increment collection from the Project Area will not effect the ability to finance
         proposed projects.

         The Agency may continue to finance the Project Area with financial assistance from
         any or all of the following sources: (1) City of San Jose; (2) State of California;
         (3) Federal government; (4) tax increment funds in accordance with provisions of
         CRL; (5) Agency bonds; (6) interest income; (7) loans from private financial
         institutions; (8) lease or sale of Agency-owned property; (9) donations; and (10) any
         other legally available public or private sources.

         A report from an independent redevelopment consultant, Kitahata and Company,
         dated October 25, 1999, confirmed that the second amendment will not have a
         material impact on the tax revenues securing the Agency's outstanding senior
         and subordinate tax allocation bonds. The Kitahata and Company report is
         incorporated into this report as Attachment 2.

F.       Relocation Plan for Families and Persons

         Not applicable.

G.       Analysis of the Preliminary Plan

         Not applicable.

H.       Report and Recommendation of the Planning Commission

         Not applicable.

I.       Summary of Project Area Committee Meetings

         On October 12, 1999, the Civic Plaza Project Area Committee considered the
         Draft Second Amendment of the Civic Plaza Redevelopment Plan and withheld
         action in order to allow the amendment to proceed to City Council for adoption in
         December, 1999. Minutes of the meeting are attached.

J.       Conformance with the City's General Plan

         Not applicable.




rpt-accom.DOC	                                 2
Report Accompanying Proposed Second Amendment
to the Civic Plaza Redevlopment Plan
December 1999




K.        Environmental Review

          Not applicable.

L.        Report of the County Fiscal Officer

         Not applicable.

M.       Neighborhood Impact Report

         Not applicable.

N.       Analysis of the Report of the County Fiscal Officer and the Report of the
         Fiscal Review Committee, and a Summary of the Consultation by the
         Redevelopment Agency with Affected Taxing Agencies.

         Not applicable.




rpt-accom.DOC	                              3
Report Accompanying Proposed Second Amendment
to the Civic Plaza Redevlopment Plan
December 1999




Attachments:

1. Minutes of Civic Plaza Project Area Committee meeting on October 12, 1999.
2. Report from Kitahata and Company, dated October 25, 1999.




rpt-accom.DOC	                           4
                                       At tachment 1	                                         1


                        San Jose Civic Plaza Redevelopment
                          Project Area Committee (PAC)
                             Tuesday, October 12, 1999
                                 Meeting Minutes

Members Present: Vincent Bartning, Marcelino Castillo, Sue Cam, Jim Crawford,
Patricia Delaney, Lloyd Ebert, William Fan, Teresa Graham, Jack Greer, Anjee Helstrup,
Pat Havey, Charles Huang, George Magee, Klaire Nelson, Dave Pitman, Ken Podgorsek,
Keith Watt

Members Absent: Chris Block, Dick Crane, Henry Le

Staff Present: Christina Abbott, Bill Ekern, Janet Kern, Nancy Lytle, Julie Schaer

Guest: Cindy Chavez, Jonathan Noble

Other: John Olson, Jesse Ramos

CALL TO ORDER: Chair Pitman called the meeting to order at 5:32 p.m.

I.       AGENDA OVERVIEW

         The PAC was given copies of the proposed second amendment to the Civic Plaza
         Redevelopment Plan, a recent court order in favor of the Redevelopment Agency
         relating to a lawsuit filed by Mr. Ruffo, and the proposed Replacement Housing
         Plan for certain downtown areas.

II.       APPROVAL OF MINUTES

         Lloyd Ebert made a motion to approve the minutes and Jack Greer seconded. The
         minutes were approved unanimously.

III. REPORT FROM PARKING AND TRAFFIC COMMITTEE LIAISONS

          Jack Greer spoke briefly on the fact that the Fourth Street-parking garage is the
          most advanced of the planned garages. The Committee is still in the orientation
          phase and learning who is involved and what will happen when. Jim Crawford
          asked about City Hall parking and how much there would be and where. George
          Magee stated that the Sixth Street garage was thought of as City employee
          parking garage rather than a public garage. He thought that it should be made
          clear that as an employee lot, incoming and outgoing traffic could be better
          regulated and continues to have reservations regarding future planning.

          Jonathan Noble, of Councilmember Cindy Chavez's office, spoke on the Block 3
          garage. It would be a 1,600 space garage between 2' d and 3 in streets and San


minutes.doc
                                                                                             2


          Fernando and the Rep Theatre. Retail would be on the San Fernando and 2 nd
          Street sides and parking on the 3. The current plan is a proposed mixed-use
          project. Housing is expected to be part of the plan. Ken Podgorsek expressed
          excitement over the urban housing feeling that would be accomplished from this
          design. Mr. Podgorsek also expressed improved confidence over the way that San
          Jose State University is handling their increasing enrollment and the parking
          demand.


IV. ANNUAL MEETING AND ELECTION OF NEW OFFICERS

          Chair Dave Pitman called an end to the 1998-1999 year and declared the 1999-
          2000 annual meeting open. Mr. Pitman announced he would not run again for
          Chair. He called for a nomination of officers. Ken Podgorsek was elected
          Chairman and George Magee was elected Vice Chair.

V.        UPDATE ON COUNTY PROTEST

          Janet Kern, Associate Counsel for the Redevelopment Agency, spoke on two
          issues concerning the lawsuits filed against Civic Plaza.
          • County Lawsuit: Ms. Kern stated that the county had presented a protest but
              they never filed it with the courts. The statute of limitation has expired on
              this matter so there is not a lawsuit from the county.
          • Mr. Ruffo's lawsuit: Ms. Kern reported that even though the county had not
              filed suit against the project, Mr. Ruffo adopted the county's letter and has
              filed a lawsuit, it is in the process of litigation. Mr. Ruffo also filed a suit
              regarding Measure I (protessting the relocation of City Hall and the use of
              redevelopment funds for certain Civic Plaza-related items) and the court found
              for the city. Mr. Ruffo is in the process of appealing the decision and
              litigation continues.
          Jim Crawford inquired as to what the Redevelopment Agency does now. Ms.
          Kern explained that since there hasn't been an injunction filed against them the
          Agency would proceed with plan implementation.

VI. PLAN AMENDMENT TO REMOVE TAX INCREMENT

          Nancy Lytle, Program Coordinator for the Redevelopment Agency, explained the
          proposed amended version of the Civic Plaza Plan and that all financing will
          come from the merged area. The proposed amendment will remove the ability of
          the Agency to collect tax increment from the Civic Plaza Redevelopment Area; all
          necessary funding will come from the merged area. Ms. Lytle explained that the
          committee has the right to make a reccomendation for or against the
          ammendment. Staff recommended that the committee accept notice of the
          proposed amendment. Chair Podgorsek opened the topic for discussion. Charles
          Huang questioned will this proposed amendment affect relocation money. Ms.
          Lytle answered that it will not and that funds are already set aside for that.



minutes.doc
                                                                                            3



         Jim Crawford voiced concerns about whether the proposed amendment was going
         to set precedent on other issues in the future. Jonathan Noble stated that at the
         end of 2003, the ability for bonding ends so the general consensus is that it would
         not set precedent.

         Jack Greer moved that the committee acknowledge receipt of the proposed
         amended draft and take no action on it. Dave Pitman seconded and the motion
         was passed.


VII.     HISTORIC HOUSE MOVING

         Nancy Lytle stated that the Redevelopment Agency is working to acquire sites for
         seven of the eighteen houses, four of these homes are eligible Historic Landmarks
         and of highest priority. She explained that there is a committee to guide the
         program made up of Agency staff, Planning Department staff and one person
         from the Historic Landmarks Commission. Ms. Lytle also explained that a
         Request for Proposals (RFP) is being drafted. She described the different
         possibilities for public/private assistance to move the houses. Keith Watt
         suggested that the Redevelopment Agency look into a program of PG&E that
         helps to defray costs for utility relocation.

VIII. REPLACEMENT HOUSING PLAN

         Bill Ekern, Director of Special Projects Division for the Redevelopment Agency,
         presented to the PAC an overview of the draft replacement Housing Plan for
         Downtown Redevelopment Projects. Civic Plaza projects and the Fourth Street
         garage and expansion of the Convention Center are estimated to remove up to 148
         affordable housing units. Affordable units to replace the removals must be
         available within four years of the loss of the units. Mr. Ekern requested that the
         PAC review the draft plan and develop questions and comments for the
         November meeting. Jim Crawford questioned how the Agency determines the
         number of units in a building that has been turned into several unit housing. Mr.
         Ekern explained that "living units" are defined in the law. He further clarified that
         the replacement housing obligation is different from the obligation to assist
         tenants being relocated from a building due to an agency project.0

IX. TOPICS FOR NOVEMBER AGENDA

          •   Jim Crawford would like an update on property acquisition and relocation
              process.
          •   Ken Podgorsek requested an update on the legal issues.
          •   Keith Watt requested an update on Phase 11 projects in Civic Plaza area
              (housing at Apostolic Church).




minutes.doc
                                                                                             4


          •    Ken Podgorsek would like to discuss how the light rail is going to fit into
               Civic Plaza.
          •    Marcellino Castillo questioned how surrounding business and residents
               outside the area will be compensated for loss of business and /or impacts from
               construction.
          •    Vincent Bartning would like to discuss replacement of PAC members.
          •    Jim Crawford requested a review of the general rules (attendance).

X. ORAL COMMUNICATION

          •    Vincent Bartning questioned the use of Robert's Rules of Order. Ken
               Podgorsek asked Mr. Bartning if he would like to put that topic on the agenda
               for November and Mr. Bartning stated he only wanted to know the proper
               time to cite them. Nancy Lytle stated that they are used when the need arises
               however, this committee has not needed, as of yet, to rely strictly on Robert's
               Rules.
          •    Mr. Ramos inquired on storm drains and suggested that no broad leaf trees be
               planted.

          ADJOURNMENT: Ken Podgorsek made a motion to adjourn the meeting. Jim
          Crawford seconded the motion. The motion carried.




rninutes.doc
                                          	
Kitahata Company                                                      Attachment 2
                                                                                                                           —
Independent Advisor On Public Finance 	       137 Joost Avenue, San Francisco, CA 94131 415/337-1950 office 415 / 337-1320 fax e-mail: gkitahata@aol.com




October 25, 1999

Nancy Maddox Lytle, Program Coordinator
Redevelopment Agency of the City of San Jose
50 West San Fernando Street, Suite 1100
San Jose, CA 95113

Re: Report of Independent Redevelopment Consultant
     On Second Amendment to the
     Civic Plaza Redevelopment Plan

Dear Ms. Lytle:

The Redevelopment Agency of the City of San Jose (the "Agency") is in the process of adopting a second
amendment to the Civic Plaza Redevelopment Plan (the "Plan"). Kitahata & Company has been hired by
the Agency to serve as an "Independent Redevelopment Consultant" as defined by the Agency's senior
and subordinate tax allocation bond indentures to prepare a report as required by those indentures on the
effect of such proposed amendment on the Tax Revenues supporting the Agency's outstanding tax
increment debt. This report describes the indenture requirements and proposed Plan amendment, then
provides an analysis concluding that the proposed amendment will not have a material impact on the Tax
Revenues securing the Agency's outstanding senior and subordinate tax allocation bonds.

Indenture Requirements

The Agency's indenture dated as of December 1, 1993, relating to the issuance of Merged Area tax
allocation bonds (the "Senior Indenture") requires the following:

       ARTICLE VI - COVENANTS OF THE ISSUER

       SECTIPN 6.07- Covenants Concerning the Project Area and the Tax Revenues

       (p Amendment of Redevelopment Plans. If the Issuer proposes to amend any of the Redevelopment Plans, it
       shall cause to be filed with the Trustee a report of an independent redevelopment consultant on the effect of
       such proposed amendment. If such report concludes that Tax Revenues shall not be materially reduced by
       such proposed amendment, the Issuer may adopt such amendment. If such report concludes that Tax
       Revenues will be materially reduced by such proposed amendment, the Issuer shall not adopt such proposed
       amendnient: The Trustee shall be entitled to rely upon any said report, and shall have no duty to verin/ the
       information or statements set forth therein.

 The Agency's indenture dated as of June 1, 1996 relating to the issuance of Merged Area Revenue Bonds,
 1996 Series A and 1996 Series B (the "Subordinate Indenture") requires the following:

       ARTICLE VI- COVENANTS OF THE AGENCY

        SECTION 6.08 - Covenants Concerning the Project Area and the Subordinated Tax Revenues

        (f) Amendment of Redevelopment Plans. If the Agency proposes to amend any of the Redevelopment Plans,
        it shall cause to be filed with the Trustee a report of an Independent Redevelopment Consultant on the effect
        of such proposed amendment. If such report concludes that Tax Revenues will not be nzaterially reduced by
        such proposed amendment, and the Agency provides a certificate to the Trustee and the Credit Provider to
        the effect that the Agency will still satisfy the 1:05 to 1 debt service coverage test set forth in Section 3.05,
Kitahata Company
Independent Advisor On Public Finance

Report of Independent Redevelopment Consultant
on Second Amendment to the Civic Plaza Redevelopment Plan
October 25, I 999 — page 2

      the Agency may adopt such amendment. If such report concludes that Tax Revenues will be materially
      reduced by such proposed amendment or that the 1:05 to 1 debt service coverage test set forth in Section
      3.05 will not be satisfied, the Agency shall not adopt such proposed amendment. The Trustee shall be
      entitled to rely upon any said report and shall have no duty to verify the information or statements set forth
      therein.

Proposed Amendment

You have provided me with the Civic Plaza Redevelopment Plan as adopted June 15, 1999, and first
amended on that same date to include this project area into the Merged Area Redevelopment Project,
which has been black-lined with the proposed second amendment. The proposed second amendment
affects Section 401 (Proposed Financing Method) and Section 402 (Tax Increment Funds), deleting all .
provisions relating to the Agency's authority to collect any tax increment under the Plan from this project
area.

Analysis of Impact on Tax Revenues

Kitahata & Company has read the provisions and definitions relating to Section 6.07(f) of the Senior
Indenture and Section 6.08(f) of the Subordinate Indenture, and has reviewed the proposed Second
Amended Civic Plaza Redevelopment Plan. Based upon reading the proposed amended Plan and our
phone conversation this morning where you stated that the Agency had never received any Tax
Revenues from this project area, it is clear that Tax Revenues will not be materially reduced due to this
proposed amendment because there have never been any Tax Revenues from this project area to be
reduced.

Kitahata & Company concludes that, in accordance with the provisions of Section 6.07(f) of the Senior
Indenture and Section 6.08(f) of the Subordinate Indenture and subject to the accuracy of information on
proposed Plan amendment provided by Agency staff, approval of said Plan amendment described above
will not cause any material reduction to Tax Revenues as defined in those indentures.

The Agency is hereby authorized to file this report with the Trustee to comply with the provisions of
Section 6.07(f) of the Senior Indenture and Section 6.08(f) of the Subordinate Indenture requiring a report
of an "Independent Redevelopment Consultant" when proposing to amend the Plan.

Sincerely,

KITAHATA & COMPANY




Gary R. Kitahata
Principal
                           Exhibit C



          SAN JOSE CIVIC PLAZA REDEVELOPMENT PROJECT AREA
        AMENDED AND RESTATED FIVE-YEAR IMPLEMENTATION PLAN


INTRODUCTION

This Implementation Plan describes the specific goals and
objectives of the Redevelopment Agency, the specific -
projects proposed, and a program of actions and
expenditures proposed to be made within the initial five
years of the Civic Plaza Redevelopment Plan and a
description of how these projects will improve or alleviate
the blighting conditions in the Project Area. This Plan
conforms with the requirements of Section 333352(c) of the
California Community Redevelopment Law.

GOALS AND OBJECTIVES

Goal:
        Eliminate blight and expand investment in the
        Redevelopment Project Area and adjoining areas.

Objectives:
        • Extend the Downtown redevelopment benefits eastward.
        • Provide necessary assistance to stimulate
          revitalization and new commercial expansion.
        • Replan, redesign and redevelop underdeveloped areas
          that are economically stagnant, physically
          constrained, and/or underutilized.
        • Enhance the ongoing East Santa Clara Street
          Neighborhood Business District revitalization
          program.
        • Provide additional or improved recreational,
          cultural and educational facilities available to the
          community.
        • Encourage, and assist as appropriate, the
          rehabilitation and seismic strengthening of
          commercial buildings in the Project Area and
          adjoining areas.
        • Develop new local public and quasi-public uses that
          serve the needs of nearby residential neighborhoods
          and all citizens of San Jose.
        • Consolidate City municipal facilities at a single
          Downtown location to foster private redevelopment
          and elimination of blight in the Project Area,
          nearby Project Areas, and adjoining areas.
Civic Plaza Redevelopment Area	                          Page 2
5-Year Implementation Plan 1999-2004


Goal:
        Maximize urban design opportunities.

Objectives:
        • Visually and functionally connect San Jose State
          University to the Downtown and Santa Clara Street,
          and the Civic Center to the proposed City/University
          Library and proposed light rail alignments.
        • Create significant public open space in the eastern
          portion of the Downtown.
        • Devise a coherent grouping of civic buildings.
        • Create a gateway to Downtown from the east.
        • Make a transition in scale from downtown buildings
          to residential buildings.
        • Develop a mixed-use setting and locate active uses
          at street level.
        • Maximize accessibility through encouragement of
          transit use and provisions for adequate parking.

Goal:
        Increase investment throughout the Downtown.

Objectives:
        • Preserve viable office and retail sites, some of
          which are currently used by city offices, for
          private investment.
        • Attract additional private investment and employment
          into the Project Area and adjoining areas.
        • Create new housing in the Project Area where
          possible.

Goal:
        Retain and enhance historic buildings.

Objectives:
        • Preserve significant historic structures identified
          in the Project Area through rehabilitation programs
          described in this document.
        • Relocate and renovate historic houses from the
          Project Area to other proximate historic
          neighborhoods that are fragmented with vacant lots
          or blighted conditions, thereby strengthening the
          historic fabric of these Downtown Frame areas.




ImpPlan-amend.DOC
Civic Plaza Redevelopment Area	                        Page 3
5-Year Implementation Plan 1999-2004 -


SPECIFIC PROGRAMS, INCLUDING POTENTIAL PROJECTS

This plan proposes a variety of public and private
redevelopment projects that are described below. The
proposed near-term redevelopment projects include a new San
Jose City Hall/Municipal Services Building complex, a
symphony hall, a rebuilt Horace Mann School, a child care
center, a mixed-use commercial/residential redevelopment
project, a public plaza, and public parking facilities. It
is anticipated that the near-term redevelopment projects
may begin construction in the next one to three years.

Projects

City Hall/Municipal Services Building Complex:

This facility is proposed to consolidate a variety of
municipal government services now located in City Hall and
at other sites around the City. It is expected that the
building will be up to 550,000 square feet. The location
will be on the south side of East Santa Clara Street
between South Fourth and South Sixth Street. The design of
the new facility is anticipated to include the following:
     • City offices, administrative functions, and public
        meetings
     • Pedestrian access from East Santa Clara Street,
        South Fourth Street, South Fifth Street and South
        Sixth Street
     • Approximately 860 public parking spaces above and
        below grade located south of East Santa Clara Street
        between South Fourth Street and South Sixth Street.

Public Plaza:

A public plaza is proposed to be located on the south side
of Santa Clara Street, between South Fourth and South Sixth
Streets, oriented to the interior of the City
Hall/Municipal Services Building complex. The plaza is
intended to be a publicly accessible open space. The
public plaza is anticipated to include the following:
     • Landscaped and paved areas
     • Passive open space
     • Amphitheater or other amenity that could be used for
        concerts, ice skating, or other recreational
        purposes.



ImpPlan-amend.DOC
Civic Plaza Redevelopment Area	                        Page 4
5-Year Implementation Plan 1999-2004

Symphony Hall Complex:

The Symphony Hall is proposed to be located North of East
Santa Clara Street between North Fifth and North Sixth
Streets. This complex is anticipated to include:
     • Seating capacity of up to 2,000 patrons.
     • Support facilities such as classrooms, workshops,
        rehearsal space and other auxiliary uses.
     • Renovation of the Fox Building is being considered
        as a possible adjunct in connection with the
        Symphony project. This Building is a significant
       historic structure located at 40 North Fourth
        Street.
     • Creation of a public plaza to complement the public
       plaza on the south side of Santa Clara Street.

Renovated Elementary School:

The proposed Horace Mann School project will include the
construction of a rebuilt elementary school. The site will
not change from the existing school location On the north
side of East Santa Clara Street, between North Sixth and
Seventh Streets. The facility would be a multi-story
school. Elements would likely include:
     • Classrooms
     • Administrative and support space
     • Open space/playfields
     • Multi-purpose community room
     • Library/media center
     • Daycare/preschool
     • Faculty/staff parking.

Mixed-use Commercial/Residential Project:

The existing Lucky's neighborhood supermarket is envisioned
to be redeveloped through a public/private collaboration,
as an urban mixed-use project. It would include:
     • Redeveloped Lucky's Supermarket
     • Additional small retail facilities
     • Up to 50 units of high density housing.




ImpPlan-amend.DOC
Civic Plaza Redevelopment Area	                        Page 5
5-Year Implementation Plan 1999-2004

Public Parking Facilities:

A new public parking structure is planned North of East
Santa Clara Street on the west side of North Sixth Street.
There are 995 parking spaces planned, 840 of which would be
utilized for the City Hall/Municipal Services Building
complex. The additional 155 parking spaces would provide
parking for the San Jose First United Methodist Church
(which will lose their existing parking as part of the
implementation of the proposed Redevelopment Plan), the
nearby Vintage Towers residential and retail building, and
for the proposed Symphony Hall Complex.

Public Infrastructure:

The Redevelopment Plan proposes at least the following
infrastructure improvements and modifications to serve the
proposed Redevelopment Project Area:
     • Segments of Fifth Street located both north and
        south of East Santa Clara Street through the
        proposed Symphony Hall complex and the proposed
        public plaza would be closed to regular vehicular
        traffic. Utilities in a portion of Fifth Street may
        be relocated to either Fourth or Sixth Street.
     • Fifth Street, south of the proposed public plaza and
        proposed City Hall/Municipal Services Building
        complex and north of the proposed Symphony Hall
        complex, would remain a public street. The segment
        south of the proposed public plaza may be modified
        to allow one-way northbound traffic only.
     • Improvements to existing utilities and streetscapes
        would include undergrounding existing overhead
        utility lines, expansion of infrastructure capacity,
        installation of streetlights and other street
        furniture, and new landscaping and pavement.

Programs

Business Development:

This program would assist in the attraction, retention and
expansion of businesses in the Project Area and the Merged
Area through activities such as public relations, direct
marketing and advertising. Additional activities may
include outreach to property owners, brokers and retailers,
presentations on Agency projects and programs, site



ImpPlan-amend.DOC
Civic Plaza Redevelopment Area	                        Page 6
5-Year Implementation Plan 1999-2004

selection assistance, small business assistance for
retailers, and tenant attraction.

Land Assembly and Relocation:

The purpose of this program is to assemble small,
underutilized and/or poorly configured parcels of property
into sites suitable for new development, and to thereafter
sell and/or lease property for private development. The
Agency's efforts in assembling land would be applied in
selective cases. The Agency may assist in the selective
assembly of land through voluntary purchase, negotiated
purchase, or eminent domain.

Land assembly would likely take place in response to
property owner, developer or Agency initiated efforts to
assemble property needed for the expansion of existing uses
or for the creation of sites capable of development for new
uses. The Agency may also choose to participate in the
acquisition of property for infrastructure or public
facilities purposes which would primarily benefit the
Project Area. The program may also include site
preparation activities such as demolition and clearance,
and assistance for environmental remediation.

The Agency will provide relocation assistance as required
by California State Housing and Community Development
Regulations, and Agency Guidelines. This will ensure that .
uniform, fair, and equitable treatment is afforded to
displaced businesses and residents as a result of the
Agency's land assembly and relocation program. Specific
details will be provided in the actual Relocation Plan
adopted by the City Council.

Commercial Rehabilitation and Renovation:

This program would assist commercial property owners in
improving their properties. Assistance would be provided
to businesses in the Project Area to encourage restoring,
modernizing and improving the facades of commercial
structures to enhance the attractiveness and visibility of
the area. Grants or low-income loans to business owners
may be provided for exterior rehabilitation or the
modernization of commercial buildings. It is intended that
these renovations would complement the architectural
components of the area.



ImpPlan-amend.DOC
Civic Plaza Redevelopment Area	                          Page 7
5-Year Implementation Plan 1999-2004

Related to this effort, the Agency has developed "The East
Santa Clara Neighborhood Housing Investment Program" which
provides financial assistance to help qualified applicants
to buy or improve their homes. The entire Civic Plaza
Redevelopment Area and surrounding neighborhoods are
included within the boundaries of this program which are N.
2'1 and N. 13 th Streets, Julian and E. San Fernando Streets.
The program offers mortgage reductions for first time
homebuyers, and improvements and financing at reduced rates
for owners of owner-occupied single family homes and multi-
family rentals.

Historic House Moving and Renovation:

This program would relocate up to 18 historic and older
houses from property being planned for Civic Plaza near-
term redevelopment. First on the list of houses to be
moved and rehabilitated are four State Register "landmark"
candidates, identified in the DEIR. Remaining houses will
be moved in order of their ranking of historical importance
and feasibility of relocation. As many houses as possible
will be moved and restored, through leveraging Agency and
other public assistance, like First Time Homebuyers and
Mills Act tax exemptions (a property tax relief program for
qualified historic buildings). Acquisition of receiver
sites will be sought in the nearby Downtown Frame, in
historic and compatible neighborhoods, where vacant or
blighted lots now exist, and where suitable routes are
available to move the houses.
Construction Management and Public Information:

This program would coordinate construction management among
the various simultaneous projects, which are planned to be
constructed within the proposed Project Area, thereby
minimizing the impacts of construction on surrounding
residential and business neighbors. Public Information
would be a key component of this program so that neighbors
of the construction activities are notified early and
frequently regarding the onset, expected consequences, and
actual consequences of the various construction activities.
Neighbors would have ample opportunity to communicate their
concerns during the construction phases.

Desired outcomes would include:
     • public accessibility and adequate circulation during
        construction;


ImpPlan-amend.DOC
Civic Plaza Redevelopment Area	                         Page 8
5-Year Implementation Plan 1999-2004

       • management of construction employee parking and
         other construction-related effects that might be
         problematic to existing residents and businesses in
         the Project Area;
       • control of dust, noise and water pollution resulting
         from construction activities;
       • dedication of truck routes and a maximum number of
         daily trips to limit impacts on neighbors;
       • control of noise by limiting hours of operation of
         construction activities; and
       • appointment of a Construction Liaison for the
         Project Area to coordinate information regarding
         construction phasing/operations, keep the
         neighborhood informed of the stages of development,
         hear and respond to neighborhood concerns regarding
         the construction; meet regularly with all individual
         construction project managers to coordinate between
         the various individual projects for purposes of
         reducing cumulative impacts of their individual
         activities.

Neighborhood Traffic and Parking Program:

This program would be developed by the City and Agency in
conjunction with the surrounding community groups. The
desired outcome is to address traffic, residential parking
issues, and minimization of parking spillover impacts of a
future Downtown Civic Center and cumulative impacts from
other redevelopment projects surrounding the proposed
Project Area. A neighborhood task force would convene
throughout the duration of construction and into the first
years of the use of the above listed projects. Participants
would have input on the best methods to address problems
that may arise as a result of the Redevelopment Plan.

AGENCY HOUSING RESPONSIBILITY

 Pursuant to Health and Safety Code Sections 33334.2 and
 33334.3, the Redgvelopment Agency deposits into the Low and
'Moderate Income Housing Fund (the "20% Fund") 20% of the
 tax increment it collects annually. No tax increment will
 be collected from the Civic Plaza Redevelopment Project
 Area. Tax Increment will be collected from other Project
 Areas within the Merged Area.




ImpPlan-amend.DOC
	


    Civic Plaza Redevelopment Area	                           Page 9
    5-Year Implementation Plan 1999-2004

    The City's Housing Department is charged with administering
    the 20% Fund pursuant to the restrictions of Redevelopment
    Law. These funds are to be used for the purpose of
    increasing, improving, and preserving the community's low
    and moderate income housing available at affordable housing
    costs.

    As required by Section 33490 of the Health and Safety Code,
    the following information is provided in connection with
    the Agency's housing obligations for the Civic Plaza
    Redevelopment Project Area:

    I.     Amount available in the 20% Fund and the estimated
           amounts which will be deposited in the 20% Fund during
           each of the next five years.

           (The following represents amounts collected from the
           entire Merged Area. No tax increment will be collected
           from the Civic Plaza Redevelopment Project Area.)

           Amount available
           1999-2000:	      $24,048,835
           2000-2001:	      $26,886,357
           2001-2002:	      $29,562,403
           2002-2003:	      $31,264,491
           2003-2004:	      $32,214,043

    II.    Estimates of the number of new, rehabilitated, or
           price-restricted units to be assisted during each of
           the next five years within the City of San Jose and .
           estimates of the expenditures of moneys from the 20%
           Fund during each of the next five years.

           The City's Housing Department estimated the number of
           new and rehabilitated affordable housing units that
           would be developed using amounts from the 20% Fund
           during the Five-Year Implementation Plan, as described
           below.

           • FY 1999-2000, up to 854 new units   constructed, as
             many as 95 units rehabilitated.
           • FY 2000-2001, up to 860 new units   constructed, as
             many as 96 units rehabilitated.
           • FY 2001-2002, up to 870 new units   constructed, as
             many as 97 units rehabilitated.
           • FY 2002-2003, up to 941 new units   constructed, as
             many as 105 units rehabilitated.


    ImpPlan-amend.DOC
 Civic Plaza Redevelopment Area	                         Page 10
 5-Year Implementation Plan 1999-2004

        • FY 2003-2004, up to 863 new units constructed, as
          many as 96 units rehabilitated.

 III. Estimates of the number of new, substantially
      rehabilitated, or price-restricted residential units
      to be developed or purchased within the Civic Plaza
      Redevelopment Project Area, over the life of the plan
      and during the next 10 years:

        The proposed Lucky's mixed-use commercial/residential
        redevelopment project, to be developed through a
        public/private collaboration, is planned to include up
        to 50 units of high density housing.

 IV.    Estimates of the number of units of very low, low, and
        moderate-income households required to be developed
        within the Civic Plaza Redevelopment Project Area,
        over the life of plan and during the next 10 years:

        If the proposed Lucky's mixed-use commercial/
        residential redevelopment project is constructed, and
        includes up to 50 units of high density housing, 15%
        of the units constructed will be affordable as
        required by state law.

V.	     The number of units of very low, low, and moderate-
        income households which have been developed within the
        Civic Plaza Redevelopment Project Area:

        Not applicable since the Project Area is not yet in
        existence as of the date of this report.

 VI.    Estimates of the number of agency developed
        residential units within the Civic Plaza Redevelopment
        Project Area which will be developed during the next 5
        years:

        Other than the project mentioned in #3 above, the
        Agency has no present plans to develop residential
        units in the Project Area.

 VII. Estimates of the number of Agency developed units for
      very low, low, and moderate-income households which
      will be developed by the Agency during the next 5
      years:




 ImpPlan-amend.DOC
Civic Plaza Redevelopment Area	                            Page 11
5-Year Implementation Plan 1999-2004

       This requirement is not applicable since the Agency
       has no plans to develop housing in the Project Area,
       beyond the project mentioned in #3 above.

VIII. Proposed locations suitable for replacement dwelling
     units:

       It is anticipated that proposed projects will
       potentially remove existing housing within the Project
       Area. Proposed locations which may be suitable for
       replacement dwelling units include the following
       proposed Agency-funded construction projects:

       •       Century Center Apartments (116 apartment units,
               15 of which are affordable)
       •       Market Gateway Housing (54 apartment units, 22 of
               which are affordable)
       •       Park Avenue Housing (126 apartment units)
       •       Julian Street Properties (56 for sale units, 11
               of which are affordable)
       •       Mission site (98 for-sale condominium units)
       •       Ryland Mews Phase V (31 condominium units, 9 of
               which are affordable)
       •       101 San Fernando Apartments (323 apartment units,
               65 of which are affordable)

       The above list includes a total of 122 units which are
       proposed to be available to very low, low, and
       moderate-income households. As each project proposed
       in the Project Area is approved, a replacement housing
       plan will be adopted and implemented as required by
       law.

ESTIMATED EXPENDITURES PROPOSED TO BE MADE DURING NEXT 5
YEARS

The Civic Plaza Redevelopment Project Area is proposed to
be merged with other project areas in the San Jose Merged
Project Area. Merging the project areas provides the
Redevelopment Agency the ability to expend tax increment
collected from one area in any other merged area. As such
the Agency has flexibility to fund programs and projects
without regard to the amount of tax increment, if any,
collected in a particular project area.




ImpPlan-amend.DOC.
Civic Plaza Redevelopment Area	                        Page 12
5-Year Implementation Plan 1999-2004

 The Redevelopment Agency annually adopts a Five-Year
.Capital Improvement Program (CIP) Budget as a planning and
 financing tool. This CIP forms the background for the
 financial planning of this Implementation Plan. The CIP
 for Fiscal Years 1999-2004 was adopted by the Agency Board
 on October 15, 1998. The CIP is incorporated, as amended
 from time to time, in this Implementation Plan by
 reference. All references to programs and expenditures in
 this Implementation Plan are based on the Civic Plaza
 Redevelopment Plan and the Five-Year CIP.

In addition to specific programs or implementation methods
conceived in these documents, the Agency will take full
advantage of programs and funding allowed or made available
by law or through federal, state or local assistance. The
Agency will adapt its programs and specific implementation
projects and methods based upon economic conditions during
the life of this Implementation Plan and financial
resources available to the Agency at any given time.

HOW GOALS, OBJECTIVES AND PROGRAMS WILL ELIMINATE BLIGHT
WITHIN THE PROJECT AREA

Within the Civic Plaza Redevelopment proposed Project Area,
the following economic blighting conditions are considered
significant and prevalent: poor site conditions, a lack of
parking, poor building conditions, and parcels of irregular
shape and form. Furthermore, impaired investments,
overcrowding and crime were also found to be significant
economic conditions within the proposed Project Area.
These conditions are specifically described and their
distribution is documented in the Civic Plaza Project Area
Preliminary Report, January 1999, approved by the Agency
Board on February 23, 1999.

Redevelopment activities may include acquisition and
assembly of small, underutilized and/or poorly configured
parcels of land, which would otherwise be inadequate for
modern development. In many cases small and underutilized
lots are adjoining but held under separate ownership. The
proposed redevelopment program would foster local
employment opportunities and economic growth, attract more
people to the Downtown, and develop new retail by
reinvigorating commercial uses. New development will add
value to the tax rolls, encourage further development,
generate demand for Project Area properties and increase
property values. The proposed redevelopment program would


ImpPlan-amend.DOC
 Civic Plaza Redevelopment Area	                        Page 13
 5-Year Implementation Plan 1999-2004

also provide an incentive for existing owners and the
private sector to develop underutilized and blighted
properties.

Offering assistance to commercial property owners will help
prevent the decline and neglect of the retail environment
in and near the Project Area. The proposed redevelopment
program would help reinforce the urban identity of the area
as an integral part of Downtown and promote visual unity
and aesthetics of the street through cohesive design. The
proposed redevelopment program would also eradicate many of
the poor site conditions that are prevalent in the Project
Area and would in turn promote streets that are safe from
crime.

Blighted conditions will also be eliminated from the
Downtown Frame neighborhoods with the placement and
renovation of historic homes that will be moved from the
Project Area.

Improvements to the public infrastructure systemwill
provide an environment to stimulate revitalization and
growth in the Project Area. The ability of an area to
attract new investors and to encourage existing businesses
and property owners to maintain and reinvest in their
properties depends not just on the quality of the
surrounding buildings but on the quality of the amenities
serving the building stock.

 The provision of adequate and easily accessible parking
• will assist in the retention and attraction of businesses
 within the Project Area. The construction and upgrade of
 necessary public improvements and facilities will provide
 improved public health, safety, and welfare due to better
 traffic circulation and access, better night visibility and
 enhanced aesthetics through streetscape design and
 construction. The proposed parking projects will not only
 meet the demand generated by new development but will also
 supply needed parking to the area's deficient inventory.

Street landscaping improvements will substantially enhance
the appearance of the Project Area, making it more
attractive to new commercial development. Installation of
needed public improvements is imperative to the
redevelopment of the Project Area and the attraction of
private investment to the area.



 ImpPlan-amend.DOC
Civic Plaza Redevelopment Area	                       Page 14
5-Year Implementation Plan 1999-2004

Another way the City will realize blight alleviation
results for the Project Area is through the various
activities aimed at enhancing the business environment.

The expected benefits include:
 • increased commercial rents and leases comparable with
    surrounding areas,
 • enhanced property values,
 • increase assessed values from new development,
 • renewed interest in the Project Area,
 • reduced crime rate due to increased investment and
    heightened real estate activity.

All of these activities will build on the investment the
City of San Jose has made and will continue to make in the
future improvement of this area through programs such as
Project Crackdown, Neighborhood Revitalization efforts and
Neighborhood Business District improvements. This
consistency and coordination with the City is a major
strength of the Civic Plaza Redevelopment Plan.




ImpPlan-amend.DOC
                             EXHIBIT A - LEGAL DESCRIPTION

                               CIVIC PLAZA PROJECT AREA


ALL THAT CERTAIN REAL PROPERTY SITUATE IN THE CITY OF SAN JOSE, COUNTY OF
SANTA CLARA, STATE OF CALIFORNIA, DESCRIBED AS FOLLOWS:

BEGINNING AT THE INTERSECTION OF THE NORTHWESTERLY RIGHT-OF-WAY LINE OF
EAST SANTA CLARA STREET WITH THE SOUTHWESTERLY RIGHT OF WAY LINE OF
NORTH THIRD STREET, SAID POINT OF INTERSECTION BEING" THE EASTERLY CORNER
OF LOT 8, BLOCK 2, RANGE 3 NORTH OF THE BASE LINE OF THE CITY OF SAN JOSE "AS
COPIED FROM THE ORIGINAL MAP DRAWN BY SHERMAN DAY, CIVIL ENGINEER" AND
RECORDED IN BOOK "A" OF MAPS AT PAGE 72 AND 73, SANTA CLARA COUNTY
RECORDS; THENCE FROM SAID POINT OF INTERSECTION, NORTHWESTERLY ALONG
SAID SOUTHWESTERLY RIGHT-OF-WAY LINE 413.5 ± FEET TO THE POINT OF
INTERSECTION WITH THE SOUTHWESTERLY PROLONGATION OF THE SOUTHEASTERLY
LINE OF LOT 2, BLOCK 2 RANGE 4 NORTH OF SAID BASE LINE OF THE CRY OF SAN
JOSE: THENCE NORTHEASTERLY ALONG SAID PROLONGATED LINE AND ALONG SAID
SOUTHEASTERLY LINE OF LOT 2, 216.6 ± FEET TO THE EASTERLY LINE OF SAID LOT 2;
THENCE NORTHWESTERLY ALONG THE NORTHEASTERLY LINE OF SAID LOT 2 AND THE
NORTHWESTERLY PROLONGATION THEREOF, 197.8 ± FEET TO THE NORTHWESTERLY
RIGHT-OF-WAY LINE OF EAST ST. JOHN STREET; THENCE NORTHEASTERLY ALONG
SAID NORTHWESTERLY RIGHT-OF-WAY LINE OF EAST ST. JOHN STREET, 1303.38 ±
FEET TO A POINT OF INTERSECTION WITH THE NORTHEASTERLY RIGHT-OF-WAY LINE
OF NORTH SEVENTH STREET; THENCE FROM SAID POINT OF INTERSECTION
SOUTHEASTERLY ALONG SAID NORTHEASTERLY RIGHT-OF-WAY LINE OF NORTH
SEVENTH STREET AND ALONG THE NORTHEASTERLY RIGHT-OF-WAY LINE OF SOUTH
 SEVENTH STREET, 1122.5 ± FEET TO A POINT OF INTERSECTION WITH THE
 NORTHEASTERLY PROLONGATION OF THE BOUNDARY LINE DIVIDING LOTS 5 AND 8,
 BLOCK 1, RANGE 7, NORTH OF THE BASELINE OF THE CITY OF SAN JOSE ABOVE
 MENTIONED; THENCE FROM SAID POINT OF INTERSECTION SOUTHWESTERLY ALONG
 SAID PROLONGATION AND ALONG SAID BOUNDARY LINE DIVIDING LOTS 5 AND 8
 ABOVE MENTIONED, 217.5 ± FEET TO THE LOT CORNER COMMON TO LOTS 5, 6, 7, AND
 8, BLOCK 1, RANGE 7, NORTH OF THE BASELINE OF THE CITY OF SAN JOSE ABOVE
 MENTIONED; THENCE FROM SAID COMMON LOT CORNER, SOUTHWESTERLY ALONG
 THE DIVIDING LINE OF SAID LOTS 6 AND 7 AND THE SOUTHWESTERLY PROLONGATION
 THEREOF, 217.5 ± FEET TO A POINT OF INTERSECTION OF THE SOUTHWESTERLY
 RIGHT-OF-WAY LINE OF SOUTH SIXTH STREET; THENCE FROM SAID POINT OF
 INTERSECTION, NORTHWESTERLY ALONG SAID SOUTHWESTERLY RIGHT-OF-WAY LINE
 OF SOUTH SIXTH STREET, 89.9 ± FEET TO THE INTERSECTION WITH THE
 NORTHWESTERLY PROLONGATION OF THE NORTHWESTERLY LINE OF THAT CERTAIN
 PARCEL OF LAND DESCRIBED IN THE DEED TO FIRST CHRISTIAN CHURCH, DOCUMENT
 NUMBER 3081187, SANTA CLARA COUNTY RECORDS; THENCE FROM SAID POINT OF
 INTERSECTION, SOUTHWESTERLY ALONG SAID PROLONGED LINE 137.5 ± FEET TO THE
 NORTHERLY CORNER OF SAID FIRST CHRISTIAN CHURCH PARCEL; THENCE FROM
 SAID NORTHERLY CORNER, SOUTHEASTERLY ALONG THE NORTHEASTERLY LINE OF
 SAID PARCEL, 50 ± FEET TO THE EASTERLY CORNER OF SAID PARCEL, THENCE FROM
 SAID EASTERLY CORNER, SOUTHWESTERLY ALONG THE SOUTHEASTERLY LINE OF
 SAID FIRST CHRISTIAN CHURCH PARCEL, AND ALONG THE SOUTHWESTERLY
  PROLONGATION THEREOF, 237.5 ± FEET TO A POINT OF INTERSECTION WITH THE
 SOUTHWESTERLY RIGHT-OF-WAY LINE OF SOUTH FIFTH STREET; THENCE FROM SAID
  POINT OF INTERSECTION, NORTHWESTERLY ALONG SAID SOUTHWESTERLY RIGHT-OF-
 WAY LINE OF SOUTH FIFTH STREET, 29.2 ± FEET TO THE EASTERLY CORNER OF THAT
  CERTAIN PARCEL OF LAND DESCRIBED IN THE DEED TO PETER H. SMITH, DOCUMENT



 ALAN GAMY DOCUMENTS \98594\98594CIVIC.DOC	                                1
NUMBER 5456127, SANTA CLARA COUNTY RECORDS; THENCE FROM SAID POINT OF
INTERSECTION, SOUTHWESTERLY ALONG THE SOUTHEASTERLY LINE OF SAID PETER
H. SMITH PARCEL, 137.5 FEET TO THE SOUTHERLY CORNER OF SAID PARCEL, SAID
CORNER BEING A POINT ON THE BOUNDARY LINE DIVIDING LOTS 5 AND 6 OF BLOCK 1,
RANGE 5 NORTH OF THE BASELINE OF THE CITY OF SAN JOSE ABOVE MENTIONED;
THENCE FROM SAID CORNER, NORTHWESTERLY AL019G SAID DIVIDING LINE, 68.75 ±
FEET TO THE CORNER COMMON TO LOTS 3, 4, 5 AN 6 OF SAID BASELINE; THENCE
SOUTHWESTERLY' ALONG THE BOUNDARY LINE DIVIDING LOTS 3 AND 6 OF SAID
BASELINE 137.5 FEET TO A POINT OF INTERSECTION WITH THE NORTHEASTERLY
RIGHT-OF-WAY LINE OF SOUTH FOURTH STREET; THENCE FROM SAID POINT OF
INTERSECTION, NORTHWESTERLY ALONG SAID NORTHEASTERLY RIGHT-OF-WAY LINE
OF SOUTH FOURTH STREET, 340.6 ± FEET TO THE POINT OF INTERSECTION WITH THE
AFOREMENTIONED NORTHWESTERLY RIGHT-OF-WAY LINE OF EAST SANTA CLARA
STREET; THENCE FROM SAID POINT OF INTERSECTION, SOUTHWESTERLY ALONG SAID
NORTHWESTERLY RIGHT-OF-WAY LINE OF EAST SANTA CLARA STREET, 435.80 ± FEET
TO THE POINT OF BEGINNING OF THIS DESCRIPTION.




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