Silicon Valley Cities Taking Breather from Dot-Com Influx

REDWOOD CITY, CA-Following the lead of Redwood City and San Mateo, the cities of Menlo Park and San Carlos are mulling temporary moratoriums that restrict “Internet-based businesses” from building, leasing or renovating certain space.

The goal is to keep dot-com companies from gobbling up retail storefronts and light industrial parks for their office space, clogging up streets and in the case of pure on-line sales companies, giving nothing back in the form of sales tax revenues.

Lighting a path for other affected cities, the San Mateo City Council recently broadened its 45-day ground-floor office moratorium to include more than just its Downtown. Redwood City also is limiting ground-floor offices and requiring more parking throughout the city. The city has almost 100 dot-com firms, half of which have moved to town since January.