Ruling allows downtown housing project to go forward

The housing development planned for the corner of Lytton Avenue and Kipling St. in Downtown Palo Alto. Photo from the city's website.

The city of Palo Alto’s plan to build a housing development on a parking lot behind the 7-Eleven downtown moved forward yesterday when a judge rejected an argument that downtown property owners had paid for the parking lot, not the city.

A group of Palo Alto property owners, calling themselves “Downtown Vibrancy,” sued the city last year, arguing that they helped pay for parking Lot T and other downtown parking lots, and therefore should have a say in what happens to them.

Santa Clara County Superior Court Judge Theodore Zayner ruled yesterday that Palo Alto, as a charter city, does not need approval from 51% of downtown property owners to repurpose the lot. Since Palo Alto is a charter city, it can make its own policies for parking lots and is not subject to the state’s rules for non-charter cities.

The judge also rejected other claims by “Downtown Vibrancy.” The ruling clears the way for development of the housing project, located at the corner of Kipling Street and Lytton Avenue.

The city plans to turn the parking lot over to Alta Housing, a nonprofit, to build a six-story, 72-apartment complex. All of the apartments will be designated as “affordable,” that is have subsidized rents.