East San Jose is set to move forward with the La Placita project, a multimillion-dollar redevelopment that will transform a neglected 28,000-square-foot commercial building across from Mexican Heritage Plaza into a cultural community hub. The final funding for the project closed on Dec. 23, and completion is slated for January 2027, according to San José Spotlight.
The development aims to provide accessible creative space, healthy meals, and affordable health care through 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 project.
La Placita was envisioned 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. Despite challenges such as losing $3 million in federal funding due to cuts and facing rising construction costs that created a $5 million gap, Paz-Cedillos said they were able to close the gap within six months with city and state assistance. “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 the La Placita development represents an investment East San Jose neighborhoods have long deserved. “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 run the planned cafe at La Placita. She plans to offer Mediterranean, Italian, Mexican, Vietnamese and American food at affordable prices while showcasing food from various small business entrepreneurs. Castañeda also wants to regularly feature local artists and musicians at the cafe.
Paz-Cedillos said she remains committed to further investments in East San Jose by creating the La Avenida Cultural District and developing additional affordable housing projects.
