San José Council Member Pushes $30 Million Revitalization Fund for East Side

San José Councilmember Peter Ortiz is pushing the city to create a $30 million fund to support a wide-ranging revitalization plan in the East Side, an area he says has suffered for decades from racism-driven redlining, underinvestment and neglect.

The city’s Rules and Open Government Committee voted unanimously Wednesday to advance Ortiz’s proposal, directing staff to draft a framework for the fund as part of the budget process next spring.

“East San José has been left behind for far too long,” Ortiz said Wednesday afternoon during a press conference outside City Hall. “Families, workers and small businesses on the East Side have carried this city on their shoulders. But they have never received the level of commitment and investment that other neighborhoods enjoy.”

East San José includes some of the most diverse and economically disadvantaged neighborhoods in the city and the county, with large Latino and Asian populations.

Earlier this month, Ortiz launched what he calls the “East San José Economic Revitalization Plan.” He said the plan and the fund are part of what he expects will be an ongoing campaign to boost public safety, support cleanliness, small businesses, economic activity and infrastructure improvements.

With support of other East Side leaders, Ortiz has also introduced proposals to pilot a fee-waiver program for new or expanding small businesses in growth areas of the city — similar to one in San Francisco — and back higher fines for owners of blighted properties.

He noted the city has often prioritized marquee areas like downtown, where Ortiz estimates San José has invested about $18 million in San Pedro Square for sidewalks, a pedestrian mall and public art.

The San José City Council this week approved $325 million in upgrades to SAP Center — the downtown arena where the NHL’s Sharks have played since 1993 — as part of a deal to keep the team in town through 2050, which Ortiz supported.

The deal drew criticism because the city faces a roughly $30 million budget deficit next year, and how the arena improvements will be paid for remains unclear, though bonds and increased hotel taxes are possible.

“But if we could come together to spend $325 million on an arena, how can we not also come together to invest in the neighborhoods and communities with the greatest need?” Ortiz said.

The future East Side fund, Ortiz said, would combine city dollars with state and federal grants, philanthropic support and corporate partnerships.

Danny Garza, a longtime community booster and the head of the Plata Arroyo Neighborhood Association, said this is about offering dignity to residents on the East Side.

“Families in East San José deserve the same quality of parks, infrastructure and city services that other parts of our city have had for ages. That’s why this proposal matters,” Garza said at the press conference.

“This fund gives us the chance to bring into our neighborhoods pickleball courts, fitness areas and benches. This might sound small, but to people who don’t have it, it’s mighty,” Garza said.

In a memo this week, Ortiz said the fund must be sustainable and ongoing. He outlined possible uses, including more city crews to clear illegal dumping, new murals and public art, repairs to playgrounds, courts and fields, expanded homeless outreach and stronger enforcement against problem businesses and absentee landlords.

Ortiz said his team and city staff will focus on outreach and hosting town halls to gather community input before any money is allocated.

“We’re talking about leveraging every available resource to make sure East San José finally gets its fair share, because our families on the East Side matter,” Ortiz said. “This isn’t about money; this is about justice. This is about correcting a historical wrong.

“Our residents are watching. They will remember who chose to invest in their future and who chose to look away.”