14-Story Tower Proposed for California Avenue

Palo Alto’s debate over a new skyline on California Avenue is now centered on a revised plan for 156 California Ave., the site that includes Mollie Stone’s Market. City officials said on May 7 that they would bring two development options to the City Council after negotiations with Redco Development over a builder’s-remedy application. The revised option lowers the tallest building from 17 stories to 14 while keeping a three-tower mixed-use project with housing and retail. The council then signaled support on May 18 for continuing with that alternative, according to local coverage and the city’s project materials. ### Why is this proposal tied to builder’s remedy? California’s builder’s remedy law is at the center of the project because the original application was filed as a builder’s-remedy proposal, which limits the city’s ability to reject housing that does not match local zoning when a housing element is out of compliance. The city said that constraint led the council to authorize an ad hoc committee to negotiate with the developer over legal disputes and a possible alternative path. (paloalto.gov) The original application covered two lots at 156 California Avenue and Park Boulevard and proposed 382 residential units in three buildings, including a 17-story tower, an 11-story tower and a 7-story mixed-use building. City materials say that version also included 77 income-restricted units at 80% of area median income, a new 15,000-square-foot Mollie Stone’s Market, other retail space and $15.8 million in impact fees. (paloalto.gov) ### What changed in the version now under review? The city’s May 7 announcement said the negotiated alternative would reduce the tallest tower by 30 feet, from 17 stories to 14 stories. The revised massing includes a 12-story tower at 124 feet, a 14-story tower at 144 feet and another 12-story tower at 129 feet. The city said the option would include 50 affordable housing units and $14.1 million in impact fees. (paloalto.gov) A rebuilt two-level Mollie Stone’s Market would front California Avenue under the revised option, according to the city. Local reports said the alternative also reduced parking and cut the number of subsidized apartments compared with the original filing. ### Who is behind the site at 156 California Avenue? (paloalto.gov) Redco Development is the project sponsor identified in city planning documents for 156 California Avenue. The site includes the existing grocery store and an adjacent parking lot near the California Avenue Caltrain area, according to the project application materials. Ed Lauing, a Palo Alto council member who served on the ad hoc committee, said in the city’s May 7 release that the committee asked “Mike Stone and his developer” to work with the city on what he called a better project. Lauing said the talks preserved affordable housing as a priority while reducing height. (cityofpaloalto.org) ### Why has the height become the flashpoint? California Avenue is one of Palo Alto’s lower-rise commercial districts, and the prospect of towers rising to 14 stories has become the clearest point of dispute in the public debate. Palo Alto Online reported on May 19 that the council was divided but moved ahead despite concerns about building heights and neighborhood character. The Daily Post reported the council vote was 4-2 on May 18 to move forward with the three-tower concept. (paloalto.gov) The city’s own framing reflects that tension. Its May 7 announcement highlighted both added “housing and retail vibrancy” and the legal limits imposed by builder’s remedy, while stressing that the negotiated agreement does not predetermine the final outcome. ### What happens next in the approval process? (paloaltoonline.com) The next procedural step runs through Palo Alto’s housing planning and project-review process. The city said the alternative project would require the council to add the Cambridge Avenue property to the Housing Element Sites Inventory. If the council does not add that parcel, the existing development application could continue as originally submitted. (paloalto.gov) AB 130 streamlining and a CEQA exemption would apply to the alternative project, the city said, and the proposal would then move through Architectural Review Board and City Council consideration on what officials described as an accelerated timeline. The project page and council materials on the city’s website are the main public record for the next round of hearings. (paloalto.gov)