by Max Marbut
Staff Writer
This is another in a series on area executives and political and community leaders who have played prominent roles in the development of Downtown or Jacksonville as a whole over the years. Some are still in the area, working or retired or a bit of both. Some have moved away and are working in other areas of the state or country. The series continues with Paul Krutko.
What he did: Executive Director, Downtown Development Authority and Jacksonville Economic Development Commission Senior Director of Development Services, 1997-2002.
What he’s doing now: Since 2002, Chief Development Officer, City of San Jose, Calif.
From the Rust Belt to the Sun Belt to Silicon Valley.
That’s how Paul Krutko describes his career path in urban planning and development.
After graduating from the University of Cincinnati’s College of Design, Architecture and Art, Krutko worked in municipal planning and economic development in Cleveland and Cuyahoga County, Ohio before he came to Jacksonville in 1997.
When he arrived at his office at the Jacksonville Economic Development Commission each day, he put on two hats: JEDC senior director of Development Services and executive director of the Downtown Development Authority, the precursor to the current Downtown Development Review Board.
Krutko said many of the projects he worked on in Jacksonville, like the Adams Mark Hotel, the Museum of Modern Art (now the Museum of Contemporary Art) at Hemming Plaza and the renovation of two historic Downtown buildings into residential properties (The Carling and 11 E) were driven by tax breaks and other financial incentives offered to developers.
When he left Jacksonville and went to work in the San Jose, Calif. City Manager’s Office, that’s the way it was there too, he said. That began changing soon after Krutko unpacked.
“I arrived in February 2002 in the middle of the last big recession. The dot-coms were going bust and we lost 225,000 jobs in a year. That was one out of 10 jobs that were lost nationwide,” he said. “San Jose had never really had a development strategy. This part of the country was like a lot of others. They didn’t really support development, they just looked at how to tax and extract money from developers.”
The current strategy involves developing infrastructure that motivates developers and companies to invest in San Jose. It’s the 10th-largest city in America, the third-largest in California and part of the “Bay Area” that includes San Francisco and Oakland. It’s also home to 60 percent of the jobs in the high-tech “Silicon Valley.”
“Adobe’s headquarters is here and so is eBay’s. Cisco Systems is also here and it’s the largest employer with 19,000 jobs,” said Krutko.
It’s a completely different business environment compared to North Florida and that mandates a different strategy to attract and retain business.
“In Jacksonville, we worked project by project. Here we’re setting the table to make developments work. Our strategy is based on land-use policy rather than specific deals,” said Krutko.
That can include changes in zoning and working with companies to make the highest and best use of San Jose’s resources.
One example, said Krutko, is a $750 million transportation development package that included a light rail system to move workers at the high-tech companies from their homes to their jobs. The San Jose City Council approved the policy that will result in 29 million square feet of office space and research facility development as well as 32,000 housing units. It’s part of a strategy to keep high-tech companies in San Jose that might otherwise relocate due to expansion.
“Our challenge is knowing how not to kill off the golden goose and retain our fast-growing companies. I wouldn’t trade that situation for any other city in the country,” said Krutko.
He was quick to point out, though, that even with all the development and business opportunities, San Jose faces many of the same issues found in every city of close a 1 million people, including a $65 million budget shortfall next year.
Krutko is also responsible for San Jose’s Office of Cultural Affairs, which performs a function similar to the City of Jacksonville’s Special Events Department. Having that job has led to urban development opportunities as well.
When a company that used to manufacture vehicles for the U. S. Department of Defense stopped production, San Jose officials worked to make something of the property rather than leaving the blight.
“The City of San Jose acquired 78 acres next to the airport and we’re redeveloping it. There’s going to be an office park and a hotel and a new stadium for our pro soccer team,” said Krutko.
Next year, San Jose will be a stop on the “Amgen Tour of California” a bicycle road race patterned after the Tour de France. Krutko said that’s related to a hobby he’s developed since he moved to San Jose.
“I’ve taken up road cycling,” he said. “This is a great place to ride a bike.”
Krutko added he has to do his part for the local chamber of commerce.
“We invite all Jacksonville cyclists to come to San Jose for the Tour of California. We’ve got lots of hotel rooms and the weather is great in February,” he said.
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