The Builder’s Remedy was expected to boost housing construction across the state. However, it’s causing San Jose’s pipeline to shrink. The Bumb Family has withdrawn their 2021-proposed plan for the South District development, swapping the proposed offices and 3,450 units with a 940-unit alternative, representing a loss of 2,560 units. Since San Jose did not submit a compliant housing element, there is little for the city to do.
The Bumb Family is overseeing the most substantial portion of the Berryessa BART Masterplan, known as the Market Park South District, which connects directly with the transit hub. Additional districts include the East District, Lundy District, and Facchino District. The Market Park North District was constructed with three apartment buildings and townhomes. The initial Market Park plan would create a dense neighborhood around BART’s newest train station bolstered by the city’s Urban Village strategy.
Market Place Apartments for the reduced Berryessa BART proposal, elevation by SDG Architect
The existing site is occupied by the popular family-owned Berryessa Flea Market, surrounded by a sea of surface parking. Inside the market, the stands and stalls provide a good model for a walkable urban street network, with small blocks filled with stores, games, and a public park.
Initial and current plans both secure a future for the flea market to exist next to the transit station, according to the developer representative. Of the 940 units, there are 451 townhomes, 399 apartments, and 90 condominiums. Approximately 20% of the units will be deed-restricted as affordable to low-income households. Retail space will still be created, approximately 45,000 square feet. SDG Architects is responsible for the design.
Speaking to the Bay Area News Group, Erik Schoennauer spoke for the developer, saying, “The proposal will preserve all of the previous commitments to Flea Market vendors,” which includes “$5 million in financial support, a 5-acre urban plaza space to facilitate a public market, and minimum 1-year advance notification of closure of The Flea Market.”
Market Park site map, illustration by Kenneth Rodrigues & Partners
The Builder’s Remedy is a recently-activated state code provision, though it was passed in 1990. The law grabbed headlines earlier this year during a state review period for city housing elements. Cities with non-compliant housing elements are now subject to the Builder’s Remedy, and with a renewed focus on the rule, developers are starting to use it.
The first Builder’s Remedy plan for the Bay Area was for an apartment in Los Altos Hills, with more filings across the Peninsula. The largest so far is a 30-story tower planned for 80 Willow Road in Menlo Park, bordering Palo Alto.
The Bumb Family has stated the new application was driven by market concerns. Construction of affordable housing in the city has increased by 24% since just last year, and market-rate housing can provide a negative return, according to a city commission report. Unfortunately for the city, its housing elements relied on the Market Place to build 62,200 units by 2031 as required by the State.
Berryessa BART Urban Village plan map
In a public statement, San Jose Councilmember David Cohen said, “Given the access to high-quality transit, the Flea Market’s economic activity, and the uniquely central location within the City, we should not accept anything less than the highest possible housing density on this site.”
Speaking with the San Francisco Business Journal, Assemblymember Alex Lee said that Berryessa “is going to be one of two major transit stops in the city. I know it’s scary right now, but if (the Bumbs) pull out now, I really think that they are missing their shot. If they stick to the plan, they can be so successful.”
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Bummer Bumbs!
“Since San Jose did not submit a compliant housing element, there is little for the city to do.”
I don’t understand. This still means more housing has to be built elsewhere in San Jose to get the housing element up to compliance.
So the ‘missing units’ still have to appear elsewhere.
I’ve reread this multiple times and I still don’t think I really understand.
The builder’s remedy has caused an increase in affordable housing construction in SJ thereby supposedly decreasing the demand for housing at the Berryessa site?
Builder’s Remedy is merely reference to an old law that allows the dev to proceed with a project more easily, without interference by the City or disgruntled neighbors. The law doesn’t stipulate what exactly the development needs to look like, as far as I know. In most cases, BR has meant that devs are allowed to build more that what the neighbors desire. In this case, it means the dev wants to build less, I guess due to economic situation. Just bad luck, but really, it is an effect of poor housing policy in our state. If we had appropriate housing rules, we wouldn’t need something like BR to begin with.
Yeah, agreed. To me it seems like it’s a market issue causing the developer to downsize. I still don’t understand the title “Housing Law Costs San Jose 1000’s of Homes” nor the opening paragraph stating that the Builder’s Remedy is causing SJ’s pipeline to shrink.
In any case, I would much prefer that instead of proposing a smaller development for the whole property, they stick with original proposal numbers but just build the site out in phases as the market allows. What’s the rush the build out the entire site?
The name checks out