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The $31.7 million Second & Santa Clara phase of L.A.-based CIM Group's "Heart of the City" redevelopment program may be a shadow of the $1 billion plan Palladium Co. had previously proposed for San Jose's Downtown Historic District. But at least the mixed-use project is actually under construction, with a new entertainment spot for the Valley pre-committed to the entire ground-floor retail space - below 70-plus new residences and above 170-some public and private parking stalls.