T
he City of San Jose is trying to attract new tenants to its downtown area by offering incentives that will reduce their business taxes and parking expenses. According to the plan, which will be presented to the City Council on October 1, companies leasing at least 2,500 square feet for four years or more will receive two years of free city-business tax and parking. This could save them tens of thousands of dollars.

    The goal is to revitalize a district that has seen a decline in leasing activity and business relocation to trendy areas like Santana Row. Mayor Matt Mahan believes that by attracting office workers, the downtown area can become more vibrant during the day, generating revenue for local businesses. The estimated cost of this incentive program is around $120,000, but city officials think it will be offset by increased spending at nearby shops and restaurants.

    To qualify, companies must lease a minimum of 2,500 square feet for four years or more. Existing businesses in downtown San Jose and lease renewals or expansions are not eligible. The incentives include two free parking permits for every 1,000 square feet of leased offices, which could save businesses $100 to $125 per employee per month in public garage fees.