San Jose officials have committed a significant public subsidy for the Gateway Tower project, a step that will help the first high-rise workforce housing complex downtown begin construction early next year and add hundreds of much-needed units to the city’s housing stock.
The City Council approved more than $38 million in loans for Core Cos.’ 15-story, 220-unit project at 470 S. Market St. that will ultimately cost more than $197 million to build.
“The total cost of development just speaks to the high challenge we have in building these types of developments within the downtown area,” Housing Director Erik Solivan said. “As we look at how we further advance our goals around redeveloping and building out more downtown, we have to look at ways in which we either continue to expand public subsidies and all their forms and incentives or alternatives, as these developments are just challenging to bring forward.”…