City leaders are committing millions of dollars in loans to an affordable housing provider after the company’s officers donated thousands to San Jose elected officials.
The San Jose City Council on June 3 unanimously approved up to $5 million in loans for the “Gateway Tower” project, a 15-story 220-apartment development between 493 S. First St. and 480 S. Market St. in downtown — with half of the homes set to be affordable to extremely low-income households. The Santa Clara County Office of Supportive Housing is also contributing more than $25 million toward purchasing the property and construction. The developer is The Core Companies.
“I’m so pleased that the Gateway Towers project is going to become a reality,” District 3 Councilmember Carl Salas told San José Spotlight. “There are 220 units, and all are 100% affordable. Of those 220 units, 55 are rapid rehousing units. Given San Jose’s desperate need, and Core’s long history with great projects, this will be a great step forward.”
Campaign finance records reviewed by San José Spotlight show the project advanced after executives with The Core Companies contributed more than $12,000 to the most recent political campaigns of multiple councilmembers.
Amended political donations laws in 2022 sparked real estate experts and lobbyists to warn the change could make for a rocky learning curve among elected officials and developers doing business with the city. Local elected officials must disclose if they’ve accepted more than $250 from the developer or their lobbyists in the past 12 months if a related proceeding comes up for a vote, under the Levine Act.
Statewide legislation amended the amount to $500 starting Jan. 1, 2025.
Campaign finance records show The Core Companies Vice President Vince Cantore made a $250 contribution to District 6 Councilmember Michael Mulcahy’s campaign on Aug. 29, 2024, and another $500 contribution on Oct. 23, 2024 — bringing the total to $750 within one year of the June 3 vote.
Mulcahy received at least $4,900 in campaign donations from executives and family members with The Core Companies in 2024. Neither parties disclosed the financial contributions during this month’s city council discussion.
State law permits elected officials who don’t willfully and knowingly accept, solicit or direct a prohibited contribution to cure the violation by returning it.
“Thank you for bringing this to our attention. This had no bearing on Councilmember Mulcahy’s vote,” Mulcahy’s spokesperson Jessica Hellman told San José Spotlight. “Moving forward our office will take additional precautions to ensure greater diligence on these matters. The councilmember will return the contribution.”
Mulcahy refunded $50 in contributions from Cantore, filings show. He told San José Spotlight he refunded another $200 one day after this news organization inquired about the potential Levine Act violation.
The Core Companies has at least 18 existing housing developments in San Jose, and many more across Silicon Valley, according to its website. The company first proposed the “Gateway Tower” almost 10 years ago and struggled to find financing until the city and county stepped in. The project is also receiving tax breaks thanks to San Jose’s downtown high-rise incentive program.
Thousands of dollars were also donated under the names of The Core Companies chairman and founder David Neale’s wife and daughter-in-law, according to public records — including a $3,000 contribution to Mayor Matt Mahan’s reelection campaign. Neale’s daughter-in-law also donated $700 to District 10 Councilmember George Casey’s campaign on June 11, 2024.
Chris Neale, president of The Core Companies, contributed $1,400 to Mulcahy’s 2024 campaign. He said the company has been a San Jose-based business and community member for more than 35 years and has made many political and philanthropic contributions over that time.
“We have a vested interest in the well-being of our community, and the donations were not, nor have they ever been, made to influence the city on behalf of a specific Core project,” Chris Neale told San José Spotlight.
Additional councilmembers who received donations to their most recent political campaigns from The Core Companies and its associates include $1,400 toward now-Vice Mayor Pam Foley’s 2022 reelection campaign, and donations of under $1,000 toward the election campaigns of Councilmembers Pamela Campos, David Cohen, Rosemary Kamei and Peter Ortiz.
Sean McMorris, a leading political transparency expert with California Common Cause, said developers have a duty to disclose their donations if they fall under campaign finance laws.
“They have to be more cognizant of this law in the future, there’s a learning curve here,” he told San José Spotlight. “Politicians don’t like this law because it’s doing what it’s supposed to do, which is to prevent the appearance of pay-to-play.”
Editor’s note: A previous version of this story did not include the total amount of money Mulcahy refunded.
Contact Vicente Vera at [email protected] or follow @VicenteJVera on X.
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