Advocates for downtown companies mentioned the rise would hit the service trade hardest.
A parking meter in San José on June 23, 2026. (Beth LaBerge/KQED)
The rise had already been constructed into the 2026-2027 price range adopted earlier this 12 months — which is a part of why it arrived for what was speculated to be routine approval on the consent calendar, reasonably than as a standalone merchandise with devoted public enter.
“I had a lot of small companies, ground-floor retail companies, attain out and specific their concern over the shortage of public engagement on this merchandise,” mentioned Councilmember George Casey, who made the movement to defer. “Someplace alongside the road, the ball obtained dropped.”
The plan to capitalize on elevated nightlife downtown, most not too long ago resulting from a surge of site visitors from the Fifa World Cup, ran afoul of downtown restaurant and bar homeowners, employees and residents, who mentioned throughout the assembly the rise would hit the service trade hardest and at precisely the unsuitable hours.
George Lahlouh, an proprietor of M.O. Hospitality, which operates 5 bars and eating places downtown and employs 200 individuals, informed the council the timing of the prolonged hours was the principle challenge.
“Extending paid meter hours till 9 p.m. and elevating key downtown meters to $4 an hour impacts the precise hours when eating places, bars, cafes, venues and occasions are working to carry individuals again to downtown,” Lahlouh mentioned. He famous that 90 minutes of free storage parking “doesn’t at all times cowl dinner, drinks, reveals, or a full downtown expertise. For workers, it doesn’t cowl a traditional shift by far.”
In response to questions from KQED, town’s Division of Transportation defended the rise as lengthy overdue. Spokesperson Colin Heyne mentioned meter charges had not been raised since 2014, and that the working hours for many meters had gone unchanged for greater than 20 years.
He mentioned San José’s $2 charge sits under peer cities — Oakland fees as much as $4 an hour, Sacramento as much as $6, and San Francisco as much as $13 — and that even after the rise, San José would stay tied for the bottom meter charges within the area whereas persevering with to supply free parking on Sundays.
Low charges and free on-street parking after 6 p.m. seem to permit some vehicles to park for lengthy stretches, limiting availability for different clients, Heyne mentioned. San José operates seven public garages with greater than 6,000 areas, together with roughly 3,600 downtown areas that supply 90 minutes of free parking, with month-to-month passes beginning at $100. Town additionally gives a reduced allow for downtown workers incomes lower than 30% above minimal wage, although there is no such thing as a particular meter charge for employees, college students or commuters.
Jason Greer, a longtime restaurant supervisor who mentioned he spoke on behalf of his back-of-house employees, mentioned the speed hike would eat into already-thin wages.
“Many of the workers don’t make over $20 an hour,” Greer mentioned. “Taking $4 is taking an enormous portion of their pay, and it’s inappropriate.”
David Faria, a small enterprise proprietor and chair of the SoFA District Committee, a bunch advocating for downtown companies, argued the plan assumed town may pull $1.2 million out of the native economic system with out altering how individuals behave — that clients and employees would merely soak up the upper value reasonably than spend much less or keep away.
“That cash has to return from someplace, and it in the end comes from the pockets of working individuals and clients who’re already stretched,” Faria mentioned. “If we would like a stronger downtown, we ought to be lowering friction, not including to it.”
Heather Hoshii, deputy director of the Division of Transportation, informed the council most outreach had been carried out internally, by way of the price range research periods, and that an e mail to the Downtown Affiliation in early Might providing a gathering had been missed. The division’s full communications push — reaching companies, updating web sites — wasn’t scheduled till July, the month earlier than the change would take impact.
Vice Mayor Pam Foley referred to as that sequence backwards.
“It’s clear the group at giant didn’t find out about this enhance,” Foley mentioned. “Whether or not the downtown enterprise affiliation knew or not or attended the conferences, that’s actually irrelevant. What’s related is that the small enterprise homeowners right here didn’t find out about it. And actually, I feel we have to take possession of that outreach.”
As a result of the income was already counted within the price range, the deferral carries a value. Finances Director Jim Shannon mentioned the delay would scale back income by roughly $150,000 to $200,000. However he mentioned he didn’t anticipate any impression on metropolis companies.
Councilmember Anthony Tordillos, who represents downtown, floated the concept of spreading a smaller enhance throughout the entire metropolis reasonably than doubling the associated fee for the downtown areas. Foley raised issues {that a} citywide change would require far broader outreach than could possibly be carried out by August. The council additionally requested employees to check doable parking reductions or set-asides for downtown workers.
Nate LeBlanc, financial improvement director on the San José Downtown Affiliation, had requested for the deferral on related grounds and famous the proposal skipped a key step by by no means going earlier than town’s downtown parking board. He mentioned it’s “in all probability inevitable that some new income must be raised,” however argued town may discover a means “with out negatively impacting our service trade and our guests.”
