Developer Pulls Plug On Controversial Residential Rezone Bid In San Jose

A developer has withdrawn a proposal to build apartments on a south San Jose industrial site, blinking first in a growing land-use battle over industrial-to-residential conversions in San Jose.

The Wolff Co. pulled its proposal to rezone the 7-acre parcel at 2829 Monterey Road, a city planning staffer confirmed late Monday. Phoenix-based Wolff is now expected to propose building a self-storage project on the land, which is allowed under current zoning.

The proposal raised the hackles of city economic development officials, who are attempting to preserve San Jose’s commercial land as San Jose fights to retain and grow its jobs base. The Wolff residential proposal's death knell seemed to come in a series of memos from city council members late last week indicating strong political opposition to the rezoning.

"This is a pivotal moment for San Jose," Mayor Sam Liccardo, Vice Mayor Rose Herrera, and District 1 Councilman Chappie Jones wrote in a memo. "The loss of prime heavy industrial lands has a profoundly negative impact on the city's long-term fiscal health, magnifying our uniquely poor jobs-housing imbalance.”

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