Tallest Residential Tower Invokes Builder's Remedy in Palo Alto

If a Builder’s Remedy project succeeds in Palo Alto, the city’s skyline will have a new addition, its tallest residential tower.

Mill Valley-based Redco Development has invoked Builder’s Remedy in its application for a project that would replace the Mollie Stone’s Market building at 156 California with three residential buildings, including a 17-story tower that would become the third-tallest building in Palo Alto.

Redco’s application, in conjunction with Midar Investment Co., proposes three apartment buildings, including towers of 17 and 11 stories as well as a seven-story residential building that would include 15K SF of ground-floor retail, including a new Mollie Stone’s outlet, according to a report in the Silicon Valley Business Journal.

Builder’s Remedy grants developers fast-track approval for housing projects without local zoning board input in cities that are not in compliance with state housing law.

The proposal in Palo Alto would plant the new 17-story tower in the middle of the commercial strip in the city’s Evergreen Park neighborhood. The only buildings in the city currently taller than 17 floors are Stanford University’s landmark Hoover Tower and an office building at 525 University Avenue.

The development site is a block away from Caltrain’s California Avenue station. The project envisions 382 units, with 77 reserved for affordable housing.

California’s state housing agency is allowing Builder’s Remedy applications to move forward in municipalities that have not received state approval of their eight-year housing plans designed to meet established state targets.

Palo Alto’s target calls for more than 6,000 housing units. The City Council adopted a housing plan in May and submitted it to the state, which rejected the plan in August, saying that “additional revision will be necessary to comply” with the state housing law.

Palo Alto city officials contend the city’s plan is in compliance with “the basic requirements” of the state housing law and therefore is Builder’s Remedy is not applicable, according to the Business Journal report.

A tsunami of litigation of Builder’s Remedy is looming in the Bay Area. In Santa Clara County along, 10 of the county’s 16 municipalities have failed to receive state approval for their housing plans.

Earlier this month, a federal judge tossed out a lawsuit by the City of Huntington Beach that challenged the state’s requirement that the city build 13,400 new homes.

Judge Fred Slaughter granted motions to dismiss the case filed by the state and the Southern California Association of Governments. Moving forward is the state attorney general’s case against Huntington Beach.

In March, the state sued Huntington Beach, claiming the city knowingly violated state housing laws.