A previous version of this article incorrectly reported which developers are asking for city money for their projects. Alliant Communities is not seeking any city money.
BY ADRIANA HERNANDEZ
Daily Post Staff Writer
Developers eyeing to build housing in Menlo Park’s downtown parking lots are worried about a citizens’ initiative which could derail their plans and possibly raise the price tag.
Presidio Bay representative John Meany said that facing hurdles poses a significant risk because the project becomes less feasible. Presidio Bay had the same sentiment as the other two developers who presented plans to council on Tuesday (June 2).
Alliant Communities Senior Vice President Steven Spielberg said the November ballot initiative aimed to stop the project and the needed outreach to residents is going to slow the project down.
CEO of Related California, Ann Silverberg, also said the uncertainty concerns her. No one knows what will happen in November, but the project they plan to build will require a lot of funding sources.
“We try to be as transparent and honest about how we’re looking at (funding) even when we’re delivering bad news,” Silverberg said.
Presidio Bay is asking the city to contribute $15 million for the parking replacement. Presidio Bay, which owns the Springline development at 1300 El Camino Real and the former USGS campus, is proposing to build a standalone garage with 455 spaces along University Drive to support businesses. They would build 347 apartments, with 814 parking spaces and 556 will be for the public. They anticipate construction to last three years.
Alliant Communities is not seeking any city money. Alliant Communities is proposing 345 apartments across four buildings with 738 parking spaces, and 556 of those spaces would be replacement parking for the existing lots.
Related California is asking the city for around $26 to $30 million. Related California, in association with nonprofit Alta Housing, is proposing 500 apartments, including 126 for seniors and 220 for families, across three buildings. The highest building is nine stories high. They plan to take up most of the space on University Drive with a garage with 556 to 574 spaces, plus bicycle parking and a new park.
Councilman Drew Combs said it would be best to review the feasibility of each project for the city.
It would be great to know where the city will get the money to ensure it has access to the funds needed, Combs said.
Residents will be voting in November on whether they should have a say in any proposed housing on the downtown parking lots. The measure landed on the ballot after a group of downtown merchants, landlords and residents started the group Save Downtown Menlo and got enough signatures to put a measure on the ballot.
Council will be reviewing funding options at its next meeting.
“Alliant is NOT seeking ANY CITY MONEY??…”. NOT TRUE , Alliant is boldly requiring City to loan it in excess of $10mm, representing Developer Fees to the City, Fire District, Menlo Park and Sequoia School Districts, BURDENING, the TAXPAYERS of the City and those Districts to PAY for the cost of increased services for the Alliant Project…
AND, Alliant is stating that it’s financial model is based on NOT paying prevailing labor wages, as the only way to pay for the Parking Garage to replace the 556 existing spaces, a cost saving to Alliant of 25% of the project cost.
If the reporter watches the video of the June 2nd Council meeting of the developer proposals, Alliant and Council agreed that if Alliant had to hire Union Labor and pay prevailing wages, it couldn’t afford the Parking Garage replacement spaces.
Moreover, Alliant is only providing 1 parking space for every 2 units, as if the new residents won’t have a car, and will ride public transit or bicycle, or walk?. Like, if a new resident can’t have a car because they don’t have an assigned parking space, then they will take a bus or ride their bicycle to COSTCO, Target, Chavez, Cardenas?? All in Redwood City!! Many miles away!! Or pay for Uber, Lyft, an easy $50. for a round trip to those preferred shopping venues.
What a scam, never ends with this overindulgent, delusional Council majority, led by…let me guess, Mayor Nash, who was Mayor in 2022 when this whole “PRIORITIZE AFFORDABLE HOUSING ON THE DOWNTOWN PARKING PLAZAS” was her insistence in key language change in the Housing Element, albeit adopted Dec. 22, 2022.
Yes, 3 nights before Xmas weekend and a major storm hitting us that weekend….and unsurprising sparse public attendance at that Dec. 22, 2022, which speaks volumes of how Mayor Nash didn’t bother to reach out to Downtown retail merchants and property owners as to what they thought of this whole misguided scheme pushed by co founder Nash and her Menlo Together lobbyists…
Time to clean house and get some real Council representation of the City Taxpayers and Downtown Merchants…Schmidt and “ever silent” placeholder J.Wise, renters of about 5=6 years in Menlo, are not true “Stakeholders” in this beloved Community of ours.
And like Nash and her 2 councilmember buddies Wolosin and Taylor, who appointed since departed newbie Maria Doerr to replace newly elected Supervisor Ray Mueller in Dist. 5 in Dec. 2022, they are just “passing through”, and we long time residents and taxpayers foot the bill of their “virtue signalling” gross malfeasance…
I don’t know why more homeowners in Menlo don’t seem to pick up on the fact that our council members are in the pockets of the advocacy groups. The level of apathy is stunning. I guess it just means we get what we deserve, in the end.
How stupid to put this complex downtown when merchants are already suffering from parking shortages that were so bad YEARS ago that I stopped seeing 2 MP personal services providers because I was always late for appointments wasting huge amounts of time trying to find parking.
For years there’s been a long parade of cars circling around looking for parking right where they plan to remove parking and it would nice if the city “leaders” got out of their offices and talked to existing businesses AND watched the parade themselves.
“It would be great to know where the city will get the money to ensure it has access to the funds needed, Combs said.” What an incredibly tone deaf statement on a couple of levels. First, Why should the city be on the hook for any of the development costs. The developers should pay for the entire project, and if they can’t make enough money go begging to the advocacy groups demanding these projects. Combs just shrugs and assumes it will cost the city.
Second, he knows full well where that money is coming from. The already burdened taxpayers and homeowners will foot the bill. Menlo Park is already considering cutting city services and raising the rates on others. And now he wants to add this cost???
Really tone deaf Drew.
Ben, I hear Drew’s comment differently. I think he was ironically pointing out the fact that the city is already in the red and doesn’t have the money to support these humongous projects.
Urbanization is a real-estate scam. None of this is done for the benefit of existing residents or businesses. It’s all about keeping connected developers who support the party in the money. California’s urbanization scam makes California’s Medicare fraud scam look like small potatoes.
And after listening to the Burgess “Open House” “dog and pony show” pitches by the 3 developers, and then hearing them at the June 2nd Council meeting, it’s obvious they will say whatever they think will give them the nod with the inane Mayor Nash and her 3 co conspirators, Schmidt, Taylor and Wise….
At least Combs asked some tough questions, and I think most “keen observers” felt that these developer’s promoters are amateurish and presumptious in believing they can “boondoggle” the informed electorate and Property Taxpayers to indulge them. The proposal from Nash and Co. is to give the developers “free land” at what is estimated Fair Market Value of $50mm, $12.5mm/ac X 4.3 acres, of Parking Plazas 1-3. Prime Downtown Real Estate. And yet the developers all have the unmitigated gall to ask for anywhere from $10-30 more in City contribution. It’s well known that Affordable Housing developers are property tax EXEMPT, so the City, Fire District and Schools won’t get a dime from these developers and have to budget for servicing the potential 600 low income residents of these high density apartments.
And recently, City has announced that it will be facing at least a $2.5mm budget deficit for the 2026-27 fiscal year, further dipping into Reserves, and it’s an easy calculation that the City will deplete it’s Reserves in 5 years at this outrageous overspending. They already spent over $1mm to the MGroup for the Housing Element Revision consultation since 2021, then another $165K for the same consultant to provide an Initiative Impact Study in December, that was amateurish and questionable in it’s conclusions. A lot of speculation in that Impact Study that doesn’t pass the straight face test. And now the City wants to authorize the City Manager Murphy to spend another $125k for a Financial Consultant to analyze the 3 developer proposals.
Council should strongly consider having its appointed Finance and Audit Commission analyze the 3 proposals, and for “FREE”. And this is URGENT!!This Council majority is on the verge of BANKRUPTING THE CITY TREASURY now that META has sidelined its Willow Village project and yet unnecessary spending continues on outside consultants. This is gross ineptitude and gross malfeasance. Time for the informed electorate and Property Taxpayers to bring out the pitchforks….