Santa Clara mayoral candidate Kathy Watanabe faces questions on prevailing wage issues

Kathy Watanabe, a candidate for Santa Clara mayor, is being called on to provide clear answers regarding prevailing wage issues tied to a major development project near Levi's Stadium, San José Spotlight reported.

The Related Companies Santa Clara project, which benefits from public support such as reduced rent and city-funded infrastructure, was approved during Watanabe's time on the City Council. The development agreement excluded prevailing wage requirements for workers, but the state Department of Industrial Relations ruled the project is a public work and must comply with these wage standards.

Related Companies appealed the ruling but ultimately lost, and Watanabe has yet to explain why a developer receiving public funds should be exempt from paying prevailing wages to the construction workers.

Additionally, Mayor Lisa Gillmor, a longtime ally of Watanabe, is under scrutiny after a San José Spotlight investigation found her property management company may have failed to pay prevailing wages on a 70-unit teacher housing project. Gillmor stated her company manages the property for a nonprofit that pays contractors directly, but questions remain about the workers' wages.

The issue highlights concerns among local building trades workers who expect elected officials to uphold fair labor standards on publicly supported projects in Santa Clara.

What we're watching: Whether Kathy Watanabe addresses these prevailing wage concerns during her mayoral campaign and how this issue influences voter trust in Santa Clara.