San Jose High-rise condo woes

The San Jose Mercury reports:

The developers of a high-rise condominium project in the heart of downtown San Jose say their project can't proceed unless they're exempted from city affordable housing requirements.

But they said there's ``no way in heck'' they can meet the deadline to qualify for that exemption.

Co-developers Barry Swenson Builder and parking company owner Albert Schlarmann unveiled detailed drawings last week to the Downtown Association, historic preservationists and other interested parties. The site is now a Second Street parking lot bordering on Fountain Alley.

But a key assumption in their 426,000-square-foot project could set up a stumbling block. The developers, who want to build at least 16 stories, say they'll ask the city to extend a waiver of affordable-housing rules beyond a June 30 deadline. City officials say they didn't know the builders were applying for the waiver.

``That's brand new news to me,'' said Vice Mayor Cindy Chavez, who represents downtown.

In August 2004, the city waived rules that say 20 percent of the units that developers build in downtown residential projects must be ``affordable,'' a requirement they say can cost them millions. The waiver, which the city issued to encourage downtown high-rise construction, applies to projects that have building permits issued by June 30.

If you aren't rich or politically connected to be a lucky ducky and get one of those subsidized units you are out of luck.San Jose doesn't have much for the middle class.