Updated plans for the Fountain Alley mixed-use project at 35 South Second Street in Downtown San Jose advanced on December 17, when the city’s Planning Director approved a Site Development Permit for the project. Developed by Westbank and Urban Community under the ownership of Project Fountain Alley LLC, the proposal replaces an earlier office-heavy concept with a residential-led scheme and is part of a broader downtown master plan aimed at increasing housing density in San Jose’s urban core.
The approval allows for two development paths. Option A preserves a previously approved 21-story mixed-use building under an earlier entitlement, while Option B authorizes the construction of two mixed-use towers rising 27 and 28 stories. The current development team is pursuing Option B, which would deliver 768 residential units above approximately 10,700 square feet (994 square meters) of ground-floor retail. Five percent of the homes will be deed-restricted for very low-income households, enabled through California’s State Density Bonus law. The project includes four levels of underground parking and loading, extended construction hours, and the removal of 12 trees on the 1.25-acre site.
Designed by CVU member Bjarke Ingels Group, the new renderings show two buildings with balconies lined with greenery. Spanning roughly 831,600 square feet, the Fountain Alley development would include 771,400 square feet (77,258 square meters) of housing, basement parking space, and retail activating South Second Street. The unit mix ranges from studios to three-bedroom apartments, with significant bicycle parking planned. The site, located between Santa Clara and San Fernando streets near the historic Bank of Italy tower, falls within Council District 3. Environmental review was completed through an addendum to the Downtown Strategy 2040 Final Environmental Impact Report, in accordance with CEQA. With the Site Development Permit now approved, the project has become one of the more advanced projects within Westbank and Urban Community’s broader vision to reshape Downtown San Jose with higher-density, and transit-oriented residential development.
Read more at SF Yimby.