After a long history of underinvestment in East San Jose, a community development project located across the street from the Mexican Heritage Plaza will receive a grant worth more than $6 million from the John S. and James L. Knight Foundation, marking the largest investment on the West Coast from the major philanthropic organization.
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The goal of the La Placita project is to transform a 28,000-square-foot commercial property on Alum Rock Avenue, which has struggled with vacancies, into a hub addressing some of the community’s most pressing needs, including healthcare, cultural programming, food security, and bolstering small businesses. It’s part of a grander vision to create a cultural district, known as La Avenida, and a push to revitalize East San Jose.
“We see this as a great investment, given the sprawl of San Jose,” Knight Foundation program director Allan Madoc told the Mercury News. “It’s very easy to focus on the downtown precinct, but we see East San Jose as a parallel market and La Placita as a core and anchor investment. It’s really about building commitment, creating jobs and cultural vibrancy.”
The Knight Foundation is one of the largest philanthropic organizations in the U.S, operating in 26 communities nationally. Madoc said the organization’s legacy focuses on giving back to the community with its program teams built around art, community impact, journalism and more.
Along with the project promoting cultural vibrancy and economic mobility and resilience, Maddoc said the foundation bought into the vision of Jessica Paz-Cedillos, CEO of the School of Arts and Culture (SOAC), who has spent the past few years helping to raise the $30 million needed to bring the project to fruition.
“This grant marks a historic milestone — not just for SOAC but also for East San José,” Paz-Cedillos told The Mercury News. “It confirms years of community visioning and helps us transition from planning to construction. La Placita will be a space where culture, commerce and community come together, setting the stage for the broader La Avenida vision. As we seek state recognition of La Avenida as a cultural district and as policies like AB 812 support artist housing, we are laying the foundation for a more vibrant, equitable, and creative economy in East San José.”
The La Placita project is expected to begin construction this fall, with completion targeted for the end of 2026. Officials estimate that the project will generate $150 million in economic activity.
Economic estimates provided to The Mercury News indicated the project could generate $390,000 and $453,000 in annual local and state government revenue, respectively.
La Placita is also expected to create more than 373 full-time jobs combined in the construction phase and after it is up and running.
Paz-Cedillos stated that the project is the first phase of La Avenida district, which will feature affordable housing alongside business, healthcare, and cultural amenities.
Earlier this month, Gardner Health Services held the grand opening of its new 10,080-square-foot health center in the district, offering medical, dental, mental and chiropractic services.
An application for recognition as a California Cultural District was submitted in August and will be reviewed by the California Arts Council. Receiving the state designation could help unlock more economic opportunities in the future, she said.
Along with acknowledging Gardner Health, Paz-Cedillos said the project would not have been possible without the City of San José, Santa Clara County, Sen. Dave Cortese, Sobrato Philanthropies, the Packard Foundation, the Hewlett Foundation and former Director of Community Development Chris Esparza, who passed away last year.
The Knight Foundation’s investment is one of several efforts underway to improve East San Jose.
Last month, District 5 Councilmember Peter Ortiz, who represents the area, rolled out a multi-prong strategy for East San Jose that includes the creation of a $30 million economic revitalization fund, which will be reviewed as part of next year’s budget process, and a year-long fee waiver pilot program for qualifying small businesses, similar to what has occurred in San Francisco.
Ortiz called the Knight Foundation’s grant “a transformational moment” for East San Jose, noting that the area had historically been overlooked despite its place as the “cultural heart of the city.”
“This funding will further our efforts to establish San José’s first cultural district in partnership with the School of Arts and Culture and through the entertainment zone we’ve created,” Ortiz said. “It also builds momentum for our East San José Revitalization Strategy, which includes my push for a $30 million revitalization fund to uplift neighborhoods, support small businesses, and improve public spaces. My hope is that La Placita becomes the beating heart of East San José’s cultural identity, bringing visibility, pride, and prosperity to a community that has long deserved it.”