For decades, East San José has been one of our city's most culturally vibrant and resilient neighborhoods. The area has raised generations of civic leaders, served as ground zero for social justice movements and hosted landmark small businesses and local institutions that are directly interwoven with San José’s identity.
Unfortunately, this area of our city has also historically lacked the level of economic investment it deserves. This ongoing underinvestment has been the motivation behind my proposal for a $30 million revitalization fund dedicated to East San Jose.
As the City of San José reviews its budget priorities this year, my main focus will be to champion the economic revitalization of East San José. This is not just about equity for one community; Facilitating targeted investment is essential for equity and our city’s health. According to research by UC Berkeley and the Latino Health Assessment produced by the County of Santa Clara, similar neighborhoods with chronic underinvestment face disparities in education quality, health outcomes, economic stability and public safety that affect all of San José.
Recent reporting revealed that, despite the Bay Area's wealth, only a fraction of donations from local philanthropists remain in our region. As a result, neighborhoods like ours are left without the support we need to thrive. This lack of support is why our city and our community must start the conversation, because we can’t wait for outsiders to step up. The budget presents an opportunity to advocate for an East San José Economic Revitalization Framework to guide investment, programming and strategic partnerships for the district.
East San José suffers from real, ongoing problems: It has limited access to local quality jobs in proximity to where residents live, small businesses are struggling due to lack of support and fear from ICE raids, the major business districts remain underdeveloped and underutilized and the commercial properties frequently struggle with blight and unsafe conditions. The importance of maintaining quality commercial spaces cannot be overstated, because when properties become vacant or blighted, the effects ripple outward, impacting public safety, economic vitality and quality of life across the city.
Deliberate investment is our best tool for fighting blight and building the neighborhoods we deserve. Oakland’s Rise East has coalesced $100 million for community-driven change. Baltimore’s East Baltimore Development Inc. has transformed the neighborhood. These cities show that investing in the community alongside philanthropic organizations can make San José safer, stronger and more welcoming for all.
La Placita at Mexican Heritage Plaza shows what’s possible when we have a shared vision and I’m proud to support the city’s allocation of $3 million to complete this project. Supporting the formation of a Business Improvement District and creating an entertainment zone along Alum Rock are just the beginning. My office has also introduced proposals to reduce the over-concentration of smoke shops on the east side, pilot a fee-waiver program for new small businesses in the city and increase fines for owners of blighted properties. We need both public policy and private-public investments to turn the District around.
Economic development improves the whole city. Every time East San José does well, we strengthen San José’s tax base, alleviate long-term demands on public services and build more secure, active corridors that serve residents far beyond the district line. When done right, revitalization, grounded in community, culture and coordination, helps reduce displacement and address the root causes of neglect and insecurity.
I urge the City Council and Mayor Mahan to support including this initiative in the city budget. Strategic investment now will attract more state, philanthropic and private resources, strengthen business districts and create opportunities for families. We can realize far greater impact by modestly investing now and strategically capitalizing on that investment: bringing in state, philanthropic and private resources; strengthening neighborhood business districts; and opening up opportunities for families. This proposal is about real people and the future we’re building together.
Let’s seize this opportunity to demonstrate that San José leads with vision and determination. By dedicating real resources to this framework, we invest in a future where every neighborhood can thrive. This framework aligns with existing Council-adopted priorities, including the OEDCA two-year work plan, and it will include targeted community engagement, building on the past and ongoing efforts in the district.
The choice is clear: the time to invest in the East Side is now. Together, we can build a stronger, safer and more prosperous San José for all.
San Jose City Councilmember Peter Ortiz represents District 5 in San Jose.
