Developer of 39-story tower in Menlo Park sues city

Read the lawsuit here.

The developer representing a Russian billionaire who wants to build a 39-story tower on the former Sunset Magazine campus in Menlo Park sued the city today (Oct. 2), claiming he has the right to build the development under state law.

City Council voted Tuesday to reject the application of Oisin Heneghan of N17 Development. The property is owned by Russian billionaire Vitaly Yusufov, the son of Russian President Vladimir Putin’s energy minister, Igor Yusufov.

The proposal calls for three towers, the tallest would be 461 feet. That would be the tallest building between San Francisco and Los Angeles. The development would contain 665 apartments, a hotel, office space and a preschool at the intersection of Willow and Middlefield roads.

Heneghan sent the city a letter in August with similar complaints to today’s lawsuit and demanded that the city approve his project by the end of October and give him a refund of $300,000. 

Heneghan’s letter came days after Attorney General Rob Bonta’s office sent the city a letter on July 28 saying the city improperly changed its reasons for rejecting the development at the former Sunset Magazine headquarters.

“The City Council believes it is important to get this right, even if there are financial consequences and service impacts for the city that may be triggered by our effort to vindicate out rights and protect the Menlo Park community,” Mayor Betsy Nash said in a statement Tuesday.

The city today (Oct. 1) fired off a response to the AG’s office, in part denying the demand to approve the project, but also asking if Bonta’s office has looked into the Russian owner of the property.

Last week, Congressman Sam Liccardo asked the U.S. Department of Treasury yesterday to look into potential sanctions against Yusufov and his father, Russian President Vladimir Putin’s energy minister, Igor Yusufov. Sanctions could stop development.

Yusufov is under sanction in Ukraine, while his father, faces sanctions in Ukraine and in Canada.

Liccardo argues in his letter that because the property is in Silicon Valley, with many major tech companies in the vicinity, Yusufov and other possible owners should be looked into due to national security concerns.

In his letter to Bonta, City Manager Justin Murphy asks if the AG’s office was aware of, or investigated concerns about Yusufov’s ownership of the property.

Councilman Drew Combs said earlier this week that a possible buyer with ties to the community has expressed interest in purchasing the property.

This is a developing story, check back for more details and be sure to pick up tomorrow’s Daily Post.