San Jose will finally be able to resume building housing in its northern sector after reaching an agreement with Santa Clara County.
The city in 2005 adopted a development plan for North San Jose — essentially the triangular area around North First Street that's bordered by U.S. Hwy 101, Interstate 880 and California State Route 237 — that gave the green light for 32,000 residences for the area as well as nearly 27 million square feet of office.
Under the new agreement with the county, San Jose agreed to design and conduct an environmental review of a redesigned interchange between I-880 and Montague and a new interchange between Montague, McCarthy Boulevard and O'Toole Ave. It also agreed to widen Montague between First Street and Lick Mill Boulevard to four lanes in each direction and to chip in 10% of the cost of widening the stretch of Montague from McCarthy and O'Toole to Great Mall Parkway.
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