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These pages contain information to assist the small business owner. You may be considering starting a home-based business, or you may already own a small business and want to expand, remodel or relocate in San Jose. These pages are intended to help you identify critical building and zoning issues, understand some common challenges, and make informed choices to avoid costly mistakes.
If you are looking for a new business location in San Jose, there are many things to consider before you buy or lease a site. What, at first, seems like a great value may turn into a huge liability if the building you are considering cannot be altered to fit your business, if it needs major structural work, or if the zoning won't allow your type of business. Don't rely solely on information provided by sales agents, because they may not fully understand zoning regulations or any special requirements your business may have in meeting building codes.
Checking into the details of a property and structure before you buy or lease can save you time and money. The staff at the Development Services Center can help you find current zoning, allowable uses, past land use decisions and requirements, current occupancy classifications, and a history of permits issued for the structure. Be sure to address the following issues:
- Find out existing restrictions on the site and/or structure and what they could mean in time and money before you make the decision to buy or lease.
- Check the current occupancy classification of the building for compatibility with your business and verify property zoning.
- Review past land use decisions to determine how they will impact your proposed business. Look at building records for past permits and code violations.
- Verify if you have adequate parking for your prospective site that is in accordance with the City’s parking regulations
Before you call or visit the City to find the answer to these questions, you can obtain the basic information you need by doing a permit search via the Internet by going to http://www.sjpermits.org. This site allows you to access all permits that have been issued on the property you are interested in.
Tenant improvements (TI’s) run the gamut from simple interior alterations to major remodels, and additions. Sometimes they might include exterior site improvements as well. Before starting a TI project, visit the Development Center and speak with a Planner and a Plan Checker to discuss the project to find out about some of the code requirements that could impact your proposal. The more research you do on the front end of the project the more you are prepared to make important business choices and successfully complete your project.
“Tenant improvements” may be funded by the property owner or the future business owner. The issue of who should pay for the construction costs and associated fees should be determined prior to signing the lease for the property.
The business owner should enlist the assistance of a design professional to determine the nature and breadth of construction and permit approvals necessary for the site. While this is an initial investment, it usually results in a faster project in terms of construction and City approvals. This lowers the total business start-up cost and allows the business to open more quickly.
A Planner will review your proposal to determine if your type of business is permitted at the site you’ve chosen based on its zoning district and land use requirements. You will be informed if you need to go through a land use review. If so, you will be told the time line and fees associated with that review process.
A Plan Checker will provide preliminary information about the fire, life safety, structural and disabled accessibility issues affecting your project. Requirements for each project vary because each project and site is unique. The more details you provide to Development Services staff at the beginning, the better we can identify critical design issues and head off potential problems. Educate yourself about code requirements before making a significant investment in your time and money. Listed below are some projects that should be researched before your start them.
- Altering the exterior of the building or site. This includes signage, storefront glazing, doors, façade improvements, awnings.
- Altering and remodeling the interior of the space. This includes partitions, walls, ceilings, shelving, displays and counters, lighting, heating and plumbing.
- Altering access to and around your site. This includes walk-ways, drive-ways, drive aisles and parking spaces.
- Businesses that make, serve and store food, such as a dine-in restaurant, take-out restaurant, deli counters, bakeries, etc…have a host of special requirements, including waste drainage control.
When the project’s construction valuation exceeds $108,000 and a building permit is required, full compliance with current standards for people with disabilities is required. The tenant space and facilities directly serving that space such as core restrooms and the parking lot shall be altered to comply. For projects with valuations below the $108,000 threshold an Unreasonable Hardship exemption may be applied for. (http://www.sanjoseca.gov/building/Other/unreashard.pdf)
When the occupancy type of a building is changed the Building Code requires that the building must meet all current code requirements for the new use. Not all changes in business use constitute a change in occupancy. Consult with a Plan Checker to determine if this is the case for you. Two of the most common changes of occupancies are when a former detached residential dwelling is converted into either an office building or a dine-in restaurant.
A “Change of Occupancy” applies to the building’s use as regulated by the Building Code. A separate process, required by the Zoning Code is used to change the use of the property. While occupancy pertains to how a building is used by the people who work or live there; the zoning classification pertains to how the site’s use affects the adjacent properties.
A home based business or home occupation, as referenced in the Zoning Ordinance, is a business or commercial activity that is conducted from a single family attached or detached dwelling, duplex, apartment, or mobile home and is clearly incidental to the residential use of the dwelling. A Planning Permit is not required for Home Occupations. However, all home occupations must conform to criteria established in the Municipal Code. For additional information regarding the criteria for operating a home based business, please click on the following link: http://www.sanjoseca.gov/planning/pdf_brochures/bro_home.pdf
Yes, a signed and completed business tax registration form and tax payment are required by the City Treasury Division (http://www2.csjfinance.org/biztax.pdf). The Treasury Division is located on the first floor of City Hall. Their phone number is (408) 535-7055.
A Sign Permit Adjustment approved by the Planning Divisions is required to put a sign on your building or property. The zoning district for your business location will determine the size and location of your sign. If you need information regarding the size and location of your signage allowances, please call (408)535-7801 to leave a message for a Planner to contact you or view the Sign Code at http://www.sanjoseca.gov/planning/zoning/sign.asp. You can obtain a copy of the Sign Permit Adjustment Application from our website at http://www.sanjoseca.gov/planning/applications/dev_ad_s_app.pdf or from our Fax on Demand Directory by calling (408)292-6063 and requesting document 1008. Typically, if your application is complete, these permits can be processed by appointment within an hour at our counter on the second floor of the Development Services Permit Center.
A building and/or electrical permit may be required and in some cases design drawings and calculations for the support of the signage may be have to be prepared by a licensed architect or engineer. The location and weight of the sign determines the extent of documentation required (Building Permit and Plan Check Requirements for Roof/Floor/Wall Mounted or Suspended Equipment). Monument signs that are taller than 6 feet require Building Division plan review.
Sign projections such as awnings or marquees require Building Division plan review. Those that project over the public way also require an encroachment permit from Public Works.
The City of San Jose’s Development Services Center is funded from fees charged on all construction projects to cover the cost of providing the development & construction approval service. The City is mandated by State and City law to provide the services in order to ensure that projects are built in conformance with land use, building safety and health regulations.
What type and how many permits you need will depend on the scope of your project. When you apply for your permits, you will be asked for a realistic estimate of your project's value, including the fair market value of all labor and materials. This information is compared to a State approved table of construction values for similar projects. Construction taxes and some permit fees may be calculated based on the valuation of your project.
- Planning Land Use Approval Fees – If the property on which your business is going to be located does not conform to the existing use or zone, Planning Division approval will be required and associated fees will be assessed.
- Plan Check and Review Fees - Each Division that reviews your plans for conformance to Zoning Code development, life safety and structural regulations charges fees for this review. These fees are common to all construction projects and must be paid when your plans are submitted to the City.
- Construction Permit Fees - These fees fund the inspections the City will perform while your project is under construction. Depending on types of permits required for your project, fees may include those for structural, plumbing, electrical, mechanical, Fire Safety, erosion control, utility connections, sidewalk and driveway permits.
- Other Fees Additional fees for assigning an address to the site, record retention, and permit processing, may be applicable . These will depend on your specific project.
- Sewage Treatment Plant Connection Fees (STP) The Department of Public Works collects sewer fees on behalf of the Water Pollution Control Plant. These are one-time capacity fees collected with construction permits. The annual use fees relating to these facilities are collected separately with the property tax bill for the subject property. The Sewage Treatment Plant Connection fee is based on the size and use of the space occupied. Fees are calculated on a square footage basis, with fees ranging from approximately $0.25/sf for retail uses, approximately $5.00/sf for a full service restaurant, and up to approximately $8.50/sf for a coin operated laundry. If a previous tenant has paid sewage fees for the space, then a new tenant only has to pay the difference between the use already paid for and the proposed use. For example: If a coin operated laundry is now proposed in a space that has paid sewer fees for a full service restaurant, then the new tenant would be credited the fees previously paid and only have to pay approximately $3.50/sf (new fee of $8.50/sf for laundry minus credit of $5.00/sf for previous restaurant use). If you are the owner of a restaurant planning to go into a space that was never occupied as a restaurant before, you Sewer Connection Fee may be several thousand dollars.
Public Works staff can be reached at (408) 535-7802 to assist you in determining the sewage fees that would be due, as well as any credits that may be available for the space you are considering.
- Fee estimates are available upon request. Please contact Development Services at (408) 535-3555 for more information.
- Construction Excise Taxes – Construction Taxes are assessed at the time of Building Permit Issuance. These taxes fund traffic infrastructure maintenance and improvements. They are typically based on a percentage of the project’s estimated construction valuation. Construction Taxes typically comprise about 50% of the overall bill to the City for your project.
Small businesses comprised of 35 or fewer employees are eligible for a 50% tax reduction on the first 3000 square feet of the construction area. (http://www.sanjoseca.gov/building/PDFHandouts/SmallBusTaxRedFlyer.pdf)
- Construction Demolition and Diversion Deposit Program (CDDD) - CDDD is San José’s incentive program to encourage the recovery of construction and demolition (C&D) debris. The City of San José will collect a deposit and fully refund it if the C&D debris is diverted from burial in the landfill.
The City’s Development Services Center is located in City Hall at 200 E Santa Clara Street. The Center brings together all staff needed to review you project. Depending upon the scope of the project, the following work groups may be required to review your project.
The Planning Division assists you by checking the following information:
- Is the property where you are locating your business appropriately zoned for the use?
- Does the site meet the required number of parking spaces to operate the business?
- Are you making any exterior building or site changes?
- What are the hours of operation for the business?
- Do you want to put a sign up for your business?
Once the Planner has determined the answers to the questions above, they will be able to direct you regarding what type of Planning permit approvals you may need before you can open for business.
To determine if your small business proposal requires a Conditional Use Permit and you know the zoning designation code for the property, look up your business type of use in the Zoning Ordinance under table 20-90 and 20-110 located on our website at http://www.sanjoseca.gov/planning/pdf/zoning_code.pdf. If you need a Conditional Use Permit, the application can be obtained from our website at http://www.sanjoseca.gov/planning/applications/dev_ad_s_app.pdf. You will also need an application for either an Exemption from Environmental Review or Environmental Clearance. Our fee schedule can be viewed at our website at http://www.sanjoseca.gov/planning/pdf/05-06%20Fee.pdf. If you have additional questions, please call (408) 535-7801 to leave a message for a Planner to contact you.
If you are making any major site modifications or building a structure/addition, then you will need a Site Development or Special Use Permit. These applications can be obtained from our website at http://www.sanjoseca.gov/planning/applications/dev_ad_s_app.pdf. You will also need an application for either an Exemption from Environmental Review or Environmental Clearance. Our fee schedule can be viewed at our website at http://www.sanjoseca.gov/planning/pdf/05-06%20Fee.pdf. If you have additional questions, please call (408)535-7801 to leave a message for a Planner to contact you.
For minor site modifications such as changing the design of an existing architectural element, adding or relocation of a door or window, and minor landscape changes, you will need to obtain approval of these changes with a Permit Adjustment. The application can be obtain from our website at http://www.sanjoseca.gov/planning/applications/dev_ad_s_app.pdf. Typically, if your application is complete, these permits can be processed by appointment within an hour at the second floor counter of the Development Services Permit Center.
The Development Services Division of Public Works is responsible for ensuring that new development projects comply with applicable regulations and provide the necessary public infrastructure including, but not limited to: streets, sidewalks, storm and sanitary sewers, streetlights, landscaping in frontages and street islands, and traffic signals.
In addition to reviewing, approving and inspecting the public infrastructure necessary for new development, our division is also responsible for the following programs:
Public Works is responsible for administering this program and providing Flood Zone information to the citizens of San Jose.
Construction proposed in a Geologic Hazard Zone requires a Geologic Hazard Clearance prior to approval of planning or building permits.
The purpose of the Grading program is to ensure that private property is graded so that it will drain properly, not impact adjacent properties and not create erosion problems. Improper grading can result in localized flooding, landslides and differential settlement. These problems do not only affect the graded property, but can also impact adjacent properties. To ensure that grading operations do not impact the local creeks and storm drainage systems during the winter months, any grading occurring between October 15 and April 15 requires an approved Erosion Control plan.
Encroachment permits are used to allow construction work in the public right-of-way.
The Building Division is responsible for reviewing and inspecting private sector buildings for compliance with fire and life safety provisions of state and locally adopted codes, as well as the state mandated disabled accessibility and energy regulations. The Building Division offers several types of plan review services.
- Regular Plan Review is for projects that required substantive review. The first cycle review time varies from 1.5 weeks to 8 weeks depending on the type of project and its scope of work.
- Express Plan Review (http://www.sanjoseca.gov/building/PDFHandouts/2-5CommExp.pdf)and http://www.sanjoseca.gov/building/PDFHandouts/6-30-05EO-ExpSubtradePlCkReq.pdf) is available for most tenant improvements and minor alterations that do not have engineering calculations and are office or retail uses with less than 10,000 square feet. The review is performed within a one hour appointment.
- Intermediate Plan Review (http://www.sanjoseca.gov/building/PDFHandouts/CommIntermediate2004.pdf) is for projects that do not qualify for Express Plan Review and are of sufficient quality and completeness to qualify. This option is dependent upon staffing availability to meet the five (working days) first cycle review time.
- Coordinated Plan Review brings together staff from Building, Planning, Fire, Public Works, Office of Economic Development and Redevelopment Agency in a seamless review process. This process ensures consistency of review comments and saves a significant amount of time. First cycle review times are established at the initial meeting between the applicant's design team and the City's review team. Similar to Intermediate Plan Review, this option is dependent upon available staffing.
The Fire Department is responsible for reviewing and inspecting buildings for compliance to fire codes, fire standards and local ordinances.
- Site Review is only be required for new construction or for any addition to an existing building. Fire Apparatus access roads, water flow required and hydrant locations are checked in this review. It is recommended that this process be completed before submitting construction plans to the Building Division. Site review is conducted by appointment only. To schedule a site review, call (408) 535-7699 for an appointment.
- Fire Architectural and, when applicable, Hazardous Materials plan review services are performed in conjunction with the Building Division plan review. Compliance with all fire and building codes adopted by the State Fire Marshal as well as applicable local ordinances are checked in this review.
- Life Safety Systems plan review shall be conducted when required by codes as determined during the Fire Architectural Plan review process. Life Safety systems include fire suppression, fire alarm, and hazardous materials systems. An “Installation Permit” issued by the Fire Department is required for each system. Also, life safety systems have to be installed by specialized professionals per State law.
You can check the status of your project via the Internet at www.sjpermits.org
The various construction codes that the Building Division enforces allow appeals for alternate methods and materials of constructions ( http://www.sanjoseca.gov/building/Other/altmat.pdf). The appeals process does not waive or change the construction code requirements, but the appeals board will interpret the intent of the Code to determine if the proposed alternate method and materials are equivalent to those in the Code.
Your appeal application must clearly show how your proposed alternative provides an equivalent level of fire, life safety, structural, energy conservation, or accessibility before it can be approved. It takes approximately one week to learn the results of your appeal.
If you don’t understand or agree with corrections that are requested by the plans examiner or the field inspector, you may contact that staff member’s supervisor to discuss the issue.
The supervisor will provide further explanation about the correction being requested and work with you to resolve the issue.
In May of 2005 ,Mayor Ron Gonzales announced a new program headed up by Development Services to assist small business owners through the review and permitting process, and refer them to other City services that cater to small businesses. The program appoints a single point of contact within the City to assist those not familiar with the project review and inspection processes. Business owners receiving the most benefit from this program engage an ambassador prior to signing a lease or buying a property. The ambassador will assist with the site research and preliminary project review. You can contact a Small Business Ambassador at (408) 535-3555.
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