| San Jose Industrial Land Supply and Fiscal Impact Analysis |
| City of San Jose |
| San Jose, California | June 2003 | to | March 2004 |
| Under pressure to convert industrially zoned land to residential uses, the City of San Jose hired Strategic |
| Economics to develop a framework for making systematic land use decisions. The City sought a framework that |
| ensures an adequate supply of land for its key employment sectors over the next 20 years while also meeting the |
| needs of current and future residents for housing and retail. Strategic Economics’ study, conducted parallel to the |
| creation of a new Economic Development Strategy, projected land demand for employment uses and determined |
| which areas would be most important for San Jose's long-term competitiveness, particularly in the high-tech |
| industries in which it specializes. Strategic Economics then developed a fiscal model to examine the impact of |
| different development scenarios in those areas on the city's service costs and revenue base. Both the land supply |
| analysis and the fiscal model were built on a geographic information system providing the City with a spatial |
| understanding of their economy and a clear understanding of how place/location impacts fiscal considerations. |
| Strategic Economics ultimately made recommendations about development mixes and densities that would use |
| the city's land resources efficiently, intensify development in the areas served by light rail, provide a positive fiscal |
| outcome, and support long-term economic development while meeting the city's need for new housing. |