San José, CA --- Today's groundbreaking for the new Plaza de San José retail center at the southeast corner of Story and King Roads in East San José will provide nearby neighborhoods and the entire region with a long awaited first-rate shopping center by the end of next year.

The project includes the approximately 200,000 square feet of new construction and an upgrade of an existing 3,224-square-foot building. New stores will include Target and Mexico-based FAMSA, which will join Walgreen's and Ritmo Latino that are currently at Story and King.

The $73.5 million project to revitalize the commercial center was approved by the San Jose Redevelopment Agency (SJRA) Board in August 2002. The SJRA is investing $39 million, and developer Blake Hunt Ventures is investing $34.5 million. Completion is scheduled for fall 2005.

San José Mayor Ron Gonzales, Councilmember Nora Campos, San Jose Redevelopment Agency, and the Story Road Business Association along with the residents of the East Valley/680 Community joined Blake Hunt Ventures to celebrate the start of construction at a neighborhood ceremony this morning.

"This project will enhance San Jose neighborhoods and strengthen our economy," said San José Mayor Ron Gonzales. "It will be a wonderful addition both for East Valley residents and other San José neighborhoods when we celebrate the ribbon cutting next fall."

The planning for revitalizing the intersection at Story and King Roads began in the early 1990s when the community requested improved retail with access to more goods and services in the neighborhood.

"Plaza de San José will become a gathering place for families in the Eastside and throughout our city," said Councilmember Nora Campos, who represents East San José on the city council. "I have worked hard with this community for many years to help turn their vision into reality. This will be a project that will make these neighborhoods proud."

The revitalization plan was to create new commercial opportunities to take advantage of the neighborhood's development of the commercial intersection to attract new retail businesses, and support existing merchants in the Story and King retail centers.

"This is a perfect example of how the Redevelopment Agency, our community, and private developers can create projects that make our neighborhoods such vibrate places to live and work while adding economic vitality to the city overall," said Harry Mavrogenes, Executive Director for the Redevelopment Agency.

Two comprehensive studies by the SJRA in 1996 and 2000 found that these Eastside neighborhoods were underserved by retail services estimated at a value of more than $250 million annually.

"Blake Hunt Ventures and our partners, Bay Area Smart Growth Fund, are honored to be able to work with this community to help make their dream come true," said Jerry Hunt, President and Chief Operating Officer of Blake Hunt Ventures.

The San Jose Redevelopment Agency is dedicated to creating jobs, building housing, and improving the lives of all who live and work in San José. Governed by the City Council, the Redevelopment Agency partners with business and the community to achieve economic revitalization in the Downtown, our technology parks and industrial areas, and our neighborhoods.