East San Jose is about to see its multimillion-dollar dream project become reality.
La Placita will transform a neglected 28,000-square-foot commercial building across from Mexican Heritage Plaza. The space will be rebuilt into a cultural community hub with a theater, cafe and family wellness center operated by Gardner Health Services. The School of Arts and Culture raised $30 million through multiple partners. Final funding closed on Dec. 23.
The project, slated for completion January 2027, will provide accessible creative space, healthy meals and affordable health care.
La Placita was the vision of Chris Esparza — former director of community development for the School of Arts and Culture at Mexican Heritage Plaza who died unexpectedly in August 2024 — and Jessica Paz-Cedillos, CEO of the School of Arts and Culture and a San José Spotlight columnist.
Getting there proved challenging. After raising about $10.2 million to buy the property and $20 million for tenant improvements from the city, county and state, along with a $6 million investment from the Knight Foundation, the project was fully funded — until it wasn’t.
The project had $3 million in federal funding earmarked, but it was terminated due to federal cuts — and rising construction costs created a $5 million gap. But Paz-Cedillos wasn’t deterred.
“We went to work,” Paz-Cedillos told San José Spotlight. “We approached all of our supporters … and folks came through.”
With city and state assistance, the nonprofit School of Arts and Culture closed the gap in about six months and managed to set up tax credit financing through a federal program established to serve low-income communities. It will be administered by Community Development Financial Institutions Fund.
“We were able to get it across the finish line … because of the flexibility of our philanthropic partners, because of the support of our government institutions,” Paz-Cedillos said. “We’ve been very fortunate to have committed partners who took a risk with us.”
The La Placita development is the kind of community-centered investment East San Jose neighborhoods have long deserved, District 5 Councilmember Peter Ortiz said.
“This project isn’t just about what we’re building today,” Ortiz told San José Spotlight. “It’s about investing in a future with strong cultural spaces, equitable economic opportunity, affordable housing and essential services rooted in community.”
Going forward, Paz-Cedillos is committed to investing in the community by creating the La Avenida Cultural District and developing affordable housing and additional commercial space at Mexican Heritage Plaza.
She said successfully raising the funds needed to develop La Placita demonstrates the School of Arts and Culture’s ability to take on future projects.
Caterer Gloria Castañeda, who will run the planned cafe, is looking forward to serving the community. Having raised her family in the neighborhood, she’s familiar with its needs.
She plans to offer Mediterranean, Italian, Mexican, Vietnamese and American food at affordable prices, as well as an omelet and panini bar. Castañeda wants to showcase food from various small business entrepreneurs.
“Like if somebody says, ‘You know what, Gloria? I make great pastries,’ I would say, ‘Why don’t you come this Friday … and put (up) your stand,'” she said.
Castañeda wants to regularly feature local artists and musicians at the cafe to provide creatives with a local outlet and residents with affordable entertainment.
“It’s how we go about supporting our community,” Paz-Cedillos said.
Contact Lorraine Gabbert at [email protected].
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