The building, which is located on the corner of High Street and Channing Avenue, is a 17,600-sf brick building that was built in the 1920's. The building's owner, Palo Alto High Street Partners, has been trying for several years to get the city to approve a proposal for a new development, but has faced many obstacles.On one hand, the 800 High St. building is a Palo Alto landmark, and it could be eligible for historic preservation. Local historians and residents argue that the old brick building is worth restoring to preserve the neighborhood's cultural feel. On the other hand, it is a prime piece of real estate that could be more valuable as a new residential and retail project.

According to city officials, the proposed demolition of the Peninsula Creamery to make room for a new project has been a touchy issue amongst residents and city leaders for years. This week's approval paves the way for one of the largest new developments in the South Forest Area.

Palo Alto High Street Partners plans to demolish the Peninsula Creamery and build a new structure that is five times bigger than the original building. The mixed-use development will include 61 housing units, 2,000-sf of retail space and a 201-space parking garage. Eleven of the housing units will be set aside for low-income families and 61 of the parking spaces will be available to the public, tackling some of the city's most crucial issues.