SAN JOSE — A San Jose apartment project linked to the city’s purchase of a downtown historic building has landed final city approval despite concerns raised by some neighbors and a union-backed group.
The project would produce 276 apartments at 470 West San Carlos St. in downtown San Jose. The City Council approved the development on Oct. 20 through a 10-0 vote.
The vote upheld a previous decision by San Jose city planners to approve the proposed eight-story project. The decision also rejected an appeal of that prior ruling by the municipality’s planning staff administrators.
Stakeholders + Neighborhoods Initiative, a group formed by some residents who live near the development site, led the opposition to the apartment project, which is known as The Gifford.
Kathy Sutherland, president of Stakeholders + Neighborhoods, says her group is worried about the project’s design and how well it would mesh with the area.
“Urban Catalyst proposes an eight-story building that, by the city’s own analysis, is ‘a building with no setbacks’ at the shared property line with our homes,” Stakeholders + Neighborhoods wrote in a letter earlier this year.
Stakeholders + Neighborhoods Initiative said typical design guidelines in downtown areas near the Diridon train station require projects to have a step-back arrangement so they don’t loom over existing homes.
The project’s precise height was a topic of debate at the meeting. Urban Catalyst, the developer, states that the apartment complex is expected to be 84 feet and 10 inches high.
A union-backed group suggested at the hearing that under some scenarios, the project might actually exceed 85 feet by about an inch or so and should require union workers as the builders.
Certain State of California and City of San Jose rules crafted to streamline housing production oblige a developer to employ unionized construction workers when a project is 85 feet or higher.
The project’s final approval was completed in the wake of the city of San Jose’s purchase of a historic downtown property at 26 through 36 South First St. that’s known as the Knox Goodrich Building.
Urban Catalyst, which is developing the apartment complex, also sold the Knox Goodrich Building to the city in a deal that was officially completed on Aug. 7.
Erik Solivan, San Jose’s housing director, said during a June council meeting that the deals would proceed separately and with sufficient scrutiny.
“These two things are bridged together, but they are not in any way tied together,” Solivan said.
San Jose officials believe the purchase of the historic building and development of The Gifford would greatly benefit downtown.
“The Gifford, along with Urban Catalyst’s Icon-Echo Apartments, Gateway Residential Tower by CORE Developers, and the Bank of Italy conversion to residential units by Westbank, will spur a revitalization” in downtown San Jose, city staffers wrote in a June 2026 memo to the City Council.