SAN JOSE — Several creative artists and arts groups have begun to fashion new places to operate in a downtown San Jose office building that is next to a choice site for redevelopment.

On the first floor and in the basement of the Valley Title Building in downtown San Jose, arts groups are taking up residence in spaces provided to them by busy local developer Gary Dillabough, who owns the building and a big surface parking lot adjacent to it.

“This is nothing short of awesome,” said Erin Salazar, executive director and founder of Local Color, a nonprofit that pays local artists to create works of art in the area.

Dillabough provided, free of rent, the first floor and basement level of the building to local arts groups. The artists are obliged only to maintain their spaces and pay the utility bills. At a time of an investment and building boom in downtown San Jose, free rent can be a lifesaver for an artistic endeavor.

“With so many arts organizations becoming displaced because of development, it’s the least that developers can do,” Salazar said.

Among the groups that are in the Valley Title Building: Local Color, San Jose Jazz, and SVCreates.

“We thought having the artists in there would create more vibrancy and a better atmosphere,” Dillabough said. “That building has been a magnet for homeless people.”

The presence of a diverse group of artists in one building is a definite benefit, said Connie Martinez, chief executive officer with SVCreates, which supports artists through investments, publications, and its partnership network.

“It’s so exciting, and it’s great to be all together in these collaborative spaces,” Martinez said. “It’s so refreshing to have a commercial developer come in and want to support arts groups and artists in this creative way.”

In recent days, artists and art groups were moving into the Valley Title building to fill up available spaces. Local Color moved into the basement in late August.

At least one musical group, the San Jose Chamber Orchestra, has found a refuge for its offices after being displaced from its former home at the historic Trianon Theatre in downtown San Jose.

“Downtown San Jose is changing so quickly, so it’s great to be able to have a space like this,” said Brendan Rawson, executive director with San Jose Jazz.

The artists’ groups are well aware of major development efforts in downtown San Jose such as Google’s transit village proposal near the Diridon train station, the Adobe headquarters expansion, and a burst of proposals for huge projects throughout the city’s urban core.

“We are looking to create a haven for lots of artists and creative people who are displaced at locations that are scheduled for demolition,” Salazar said. “The benefit to the property owner is we also are responsible for any kind of maintenance to the building.”

Recently, a colorful mural appeared on the east side of the building.

“We’re going to make the building beautiful,” Salazar said.

Local Color will be able to offer roughly 15,000 square feet of space in the basement, with some of that allocated to studio spaces.

The basement also will have four desks set aside for individuals who want to undertake some quick creative tasks such as lightweight computer works, graphics design, poetry creations, or writing.

Salazar believes that Local Color can demonstrate to developers the value of regional artists to beautify buildings, a venture whose success would go a long way to keeping artists employed amid the development boom

“Arts and cultural groups are the heart and soul of the area,” Dillabough said. “They show what we want to be. That’s why we want to support them as best we can. They are extraordinary, inspirational, and exceptional. It’s an honor to work with them.”