A New Beginning for San Jose Downtown: San Jose City Council approved a project in downtown San Jose to turn the southern tower of the Signia by the Hilton San Jose Hotel into housing for San Jose State University (SJSU) students. As part of this strange deal, a real estate company will buy and rent the southern tower to the university.
The northern tower, with its 541 rooms, will still be a hotel run by Hilton. Hilton is owned by a company partner run by Sam Hirbod, an executive from the Bay Area. The south tower has been empty since there is little demand for hotel rooms. As a result, it has yet to make any transient occupancy taxes.
People think the plan is an excellent way to use resources but UNITE HERE! The Local 19 hotel workers’ union worries about the loss of jobs and the drop in tax income. Even though some council members are sceptical, the initiative tries to solve problems with space that isn’t being used and provide affordable housing for students.
Charlie Faas, vice president of SJSU, says that putting SJSU students in the southern tower will help nearby businesses, bring life back to downtown, and make the area safer. Some people are worried that organized workers will lose their jobs, but the university says it will keep these jobs.
Officials in the city want to see long-term growth and investment in new hotels. They also expect more people to want to stay in hotels. Mayor Mahan talks about the chance to make downtown livelier and attract more investment, which will benefit the whole community in the long run.