Economic plan aims to uplift East San Jose

East San Jose could soon get its first neighborhood-wide economic roadmap, as city leaders look for ways to attract investment and strengthen commercial corridors that residents and business owners say have long been overlooked.

District 5 Councilmember Peter Ortiz is spearheading the East San Jose Economic Revitalization Framework, a planning effort approved through the city’s budget process that aims to identify opportunities for business growth, infrastructure improvements, housing development and cultural investments. The framework would rely on community input and research to guide a long-term economic strategy for the area. The goal is to create a path future city leaders can continue building on rather than approaching individual projects separately.

Ortiz said East San Jose has historically lacked a coordinated economic development strategy, resulting in investments that are often disconnected from one another.

“Economic development is not separate from public safety, or parks or infrastructure,” Ortiz told San José Spotlight. “It’s what makes those investments possible.”

The city has traditionally concentrated economic development efforts in downtown and North San Jose, Ortiz said, while East San Jose has lacked a strategy designed specifically for its needs.

The framework would include a consultant-led process involving community meetings with residents, business owners, nonprofit groups and other stakeholders. Ortiz said the effort would examine underutilized properties, commercial corridors and potential funding sources from city, county, state, federal, philanthropic and private partners.

“What I hope this framework to be as a deliverable is essentially a guiding document for a place-based, East San Jose focused economic strategy,” Ortiz said.

His office helped push forward the Alum Rock Santa Clara Street Business Association and supported the creation of a business improvement district along the corridor. Ortiz also worked with community partners to establish an entertainment zone near Mexican Heritage Plaza, which is intended to encourage events and attract more visitors to the area.

The city also funded a series of public murals throughout East San Jose, including projects near Story and King roads and in the Mayfair neighborhood. Ortiz said his office helped secure funding for the expansion of Mexican Heritage Plaza, which is expected to add new community and cultural amenities.

While Ortiz envisions a long-term strategy focused on economic growth, some business owners said they continue to face immediate challenges.

“Things have improved since 2023. The city has cleaned up the homeless situation, but the real problem is the unlicensed street vendors,” a business owner at La Placita, who asked to remain anonymous to protect his privacy, told San José Spotlight. “We have the right to earn a living, but we also have the responsibility to adhere to the rules and regulations of the city.”

Business owners at the shopping center said street closures for Sunday lowrider events can affect sales during one of the busiest business days of the week. These store owners told San José Spotlight they would like the city to seek more input from small businesses when planning events that impact access to commercial areas. They pointed out that East San Jose would benefit more from community events that attract customers.

Business owners at La Placita also meet regularly to discuss issues affecting the shopping center and ways to improve the area. Their rent payments help fund security measures including surveillance cameras, and local police officers periodically visit the plaza.

Samuel Estrada, manager of Las Más Queridas restaurant near Story and King roads, said one of East San Jose’s strengths is its close-knit business community.

“I like living in East San Jose. It’s one of the most diverse areas in California, and it’s very populated,” Estrada told San José Spotlight. “We’re a fairly new restaurant, but neighboring businesses all communicate. We give each other advice and make sure to spend our money at each other’s businesses.”

Ortiz said the framework will likely take several months to develop.

“We’ve never invested on the East Side in a comprehensive way,” Ortiz said. “This is going to be a whole roadmap for the entire district.”