TO GO WITH AFP STORY-TECHNOLOGY-US-IT BY HELENE LABRIET-GROSS Silicon Valley's capital city San Jose, California as seen in this aerial photo is undergoing an urban development revolution calculated to keep it as the thriving heart of a region renowned for technological innovation.The city is working to reverse a trend in which promising startups take root in suburbs and neighboring cities such as Mountain View, Sunnyvale, and Cupertino -- the homes of Google, Yahoo and Apple respectively. Districts brimming with high-density housing are now blossoming near downtown office towers. There are 32,000 units in or near the city center and "enterprise incubation centers" have sprung up to nurture start-ups in the areas of software, bioscience, environment and market access. (Photo credit should read HELENE LABRIET-GROSS/AFP/Getty Images)

San José voters appeared willing to increase the city’s hotel tax on Tuesday, a move city leaders said would help avoid painful cuts to library hours and police patrols amid a multimillion-dollar budget deficit.

Measure A received 66% of the vote in early returns, far more than the majority vote needed to pass.

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The new hotel tax revenue — along with preliminary results in five City Council races — could help soften the night’s sting for Mayor Matt Mahan, whose upstart bid for California governor ended in defeat. While at least one council race is headed to a November runoff, Mahan appears likely to maintain a governing majority on the council.

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