S
and Hill Property has secured approval from the San Jose Planning Commission to reduce its affordable housing obligation at the El Paseo de Saratoga Shopping Center redevelopment in exchange for a one-time payment of $13.9 million.The developer, based in Palo Alto, had initially planned 994 units with 150 set aside as affordable, but now expects to build 772 units, including just 39 affordable units and an assisted living facility for seniors.According to Planning Commissioner Justin Lardinois, the project's changes reflect shifting market conditions. "I'm really excited to see mixed-use development there," he said, "but I'm disappointed that the project has across-the-board reductions."The property was purchased by Sand Hill Property in 2019 for $147 million and initially planned to retain two-thirds of the land for retail. The original affordable housing requirement was based on a 15 percent city mandate, but the developer opted out of this level, resulting in the $13.9 million payment instead.The project's plans have undergone several revisions due to changes in office demand, interest rates, and inflation. The current proposal includes one building with 12 floors and 398 units, as well as a 10-story building with 374 units and an assisted living facility of seven stories.