East San Jose is preparing to begin construction on La Placita, a multimillion-dollar community development project that will transform a neglected 28,000-square-foot commercial building across from Mexican Heritage Plaza. The final funding for the project closed on Dec. 23.
The project aims to provide accessible creative space, healthy meals, and affordable health care for local residents. It will include a theater, cafe, and family wellness center operated by Gardner Health Services. The School of Arts and Culture raised $30 million through multiple partners to fund the initiative, which is slated for completion in January 2027. According to San José Spotlight, the effort was led by Chris Esparza—former director of community development for the School of Arts and Culture at Mexican Heritage Plaza who died unexpectedly in August 2024—and Jessica Paz-Cedillos, CEO of the School of Arts and Culture.
Paz-Cedillos said that after an initial $3 million in federal funding was terminated due to federal cuts and rising construction costs created a $5 million gap, additional support from city and state sources helped close the shortfall within six months. “We went to work. We approached all of our supporters … and folks came through,” Paz-Cedillos told San José Spotlight. She added, “We were able to get it across the finish line … because of the flexibility of our philanthropic partners, because of the support of our government institutions. We’ve been very fortunate to have committed partners who took a risk with us.”
District 5 Councilmember Peter Ortiz said that La Placita represents an important investment in East San Jose neighborhoods. “This project isn’t just about what we’re building today. It’s about investing in a future with strong cultural spaces, equitable economic opportunity, affordable housing and essential services rooted in community,” Ortiz told San José Spotlight.
Caterer Gloria Castañeda will operate the planned cafe at La Placita. She plans to offer Mediterranean, Italian, Mexican, Vietnamese and American food at affordable prices as well as an omelet and panini bar. Castañeda also intends to showcase food from various small business entrepreneurs and regularly feature local artists and musicians at the cafe.
Paz-Cedillos said successfully raising funds for La Placita demonstrates the School of Arts and Culture’s ability to take on future projects. “It’s how we go about supporting our community,” she said.
