City of San Jose Sues Negligent Downtown Property Owners

City seeks to hold owners accountable for rehabilitating property in downtown core

FOR IMMEDIATE RELEASE

March 6, 2025

Media Contact:

Tasha Dean, Chief Communications Officer, Office of Mayor Matt Mahan; [email protected]  

SAN JOSÉ, CA - The San José City Attorney’s Office has filed a lawsuit against the owners of a blighted property that spans 35 through 49 E. Santa Clara Street and 9 N. 2nd Street in Downtown San José. The lawsuit alleges that the property owners have neglected their commitment to rehabilitate the building for 20 years, violating an agreement with the City’s redevelopment agency. As a result, the City of San José is taking legal action to restore this key downtown property.

“Negligent property owners can't be allowed to hold our downtown hostage for years on end,” said San José Mayor Matt Mahan. “Inaction has consequences. We will do everything in our power to restore this section of our downtown’s main corridor.”

The lawsuit seeks to compel the property owners and trustees to repay their government loan, including interest, penalties, and all unpaid citations. With the property deemed a public nuisance, the city is demanding that the owners rehabilitate the building. If the property owners fail to address the violations, the city is petitioning the court to appoint a receiver to rehabilitate the vacant and blighted property. 

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About the City of San José

With nearly one million residents, San José is the largest city in the Bay Area and one of the nation's most diverse and creative. San José’s transformation into a global innovation center in the heart of Silicon Valley has resulted in the world's greatest concentration of technology talent and development.