JANUARY 21, 2025 www.cityofpaloalto.org
Lot T Affordable
Housing Development
Partner Selection
Julia Knight
Principal Planner
1 ▪ Context & Process Overview
▪ Preliminary Development Partner Proposals
▪ Parking Scenarios & Key Considerations
▪ Staff Recommendation
▪ Potential Development Partner Introductions
OVERVIEW
2 STAFF RECOMMENDATION
Staff recommends City Council:
1) Direct staff to enter into an exclusive negotiating agreement with Alta Housing.
2) Provide preliminary direction to staff on key project components that will guide partner design focus for future development on this site related to:
A. Parking scenarios;
B. Unit count and bedroom mix; and
C. Building height.
3 LOT T DETAILS
Size
▪ Approximately 20,000 SF
▪ 52 total parking spaces
Occupancy
▪ 2023 Peak Occupancy: 40%
▪ 2019 Peak Occupancy: 42%
Location
▪ 0.1 – 0.3 miles Public Parks
▪ 0.3 miles to City Hall
▪ 0.4 miles to Train Station
Value
• Estimated $3-7 million
Lot T
University Ave.
Post Office
City Hall
Train Station Heritage Park
Johnson Park
4 Lot T
Kipling Street
Lytton Ave.
University Ave.
5 POLICY & PROCESS OVERVIEW
Housing Element / Regional Housing Needs Assessment (RHNA) ▪ 290 affordable/workforce units on City-owned land in phases by 2031 ▪ Select development partner for first phase (50+ units) 2022/2023 Request For Information (RFI) Process
▪ Responses received from both Alta Housing and MidPen Housing 2024/2025 Request For Refined Proposals (RFRP) & Partner Selection ▪ 2024 Council priority to seek refined proposals and select partner ▪ Responses received from both Alta Housing and MidPen
▪ Select developer partner in early 2025 (tonight)
Next Steps
▪ Enter into exclusive negotiating agreement
▪ Partner to develop project application for City review and entitlement 6 PRELIMINARY DEVELOPMENT PARTNER PROPOSALS
7 Proposals Received:
October 2024
Post-Submission
Discussions with Staff:
November 2024
Council Selection of
Development Partner:
January 2025
Note: Each proposal studies
three unique parking scenarios.
REQUEST FOR REFINED PROPOSALS PARKING SCENARIOS
B
On-Site
Resident &
Public Parking
C
No (or very
low) On-Site
Parking
A
On-Site
Resident
Parking Only
Recognizes residents’
parking needs;
opportunities for
replacement public
parking elsewhere such as
Lot D
Prioritizes replacement of
public parking on-site;
results in no or limited
resident parking, highest
per unit costs & requires
risk management
Lowest per unit costs but
may impact neighborhood
parking depending on
population served and
availability of downtown
garage permits
8 KEY CONSIDERATIONS
Metric Respondent Proposal Ranges
Total Housing Units 47 - 77
Average Unit 716 – 790 SF
Unit Mix Studios, 1-, 2- & 3-Beds
Population served Large family (seniors, diverse abilities) On-Site Resident Parking 0 – 36 Stalls
On-Site Public Parking 0 – 52 Stalls
Total Construction Cost $46.0 M – 70.1M
Per Unit Construction Cost $860,000 - $1.23M
Total City Gap Funding $4.1M - $10.2M
Per Unit City Gap Funding $73,000 - $155,000
Building Height 4 – 7 Stories
Note: Architectural designs shown in proposals are preliminary and adaptable. 9 SCENARIO SUMMARIES
Parking
Scenario Developer Total Units
Average
Unit Size
(SF)
Parking
Stalls
Total
Stories
Cost per
Unit
City Gap
per Unit
Total
Development
Cost
Total City
Gap
A
Alta Housing 54 790 27 5 $1.03 million $77,000 $55.3 million $4.1 million MidPen
Housing 73 765 36 7 $889,000 $139,000 S64.8 million $10.1 million 10 SCENARIO SUMMARIES
Parking
Scenario Developer Total Units
Average
Unit Size
(SF)
Parking
Stalls
Total
Stories
Cost per
Unit
City Gap
per Unit
Total
Development
Cost
Total City
Gap
A
Alta Housing 54 790 27 5 $1.03 million $77,000 $55.3 million $4.1 million MidPen
Housing 73 765 36 7 $889,000 $139,000 S64.8 million $10.1 million B
Alta Housing 57 716 52 7 $1.23 million $73,000 $70.1 million $4.2 million MidPen
Housing 61 766 62 7 $954,000 $155,000 $58.2 million $9.4 million 11 SCENARIO SUMMARIES
Parking
Scenario Developer Total Units
Average
Unit Size
(SF)
Parking
Stalls
Total
Stories
Cost per
Unit
City Gap
per Unit
Total
Development
Cost
Total City
Gap
A
Alta Housing 54 790 27 5 $1.03 million $77,000 $55.3 million $4.1 million MidPen
Housing 73 765 36 7 $889,000 $139,000 S64.8 million $10.1 million B
Alta Housing 57 716 52 7 $1.23 million $73,000 $70.1 million $4.2 million MidPen
Housing 61 766 62 7 $954,000 $155,000 $58.2 million $9.4 million C
Alta Housing 47 716 0 4 $979,000 $88,000 $46.0 million $4.1 million MidPen
Housing 77 773 5 7 $860,000 $132,000 $66.2 million $10.2 million Note: Please see staff report for further details and analysis. 12 STAFF RECOMMENDATION
Alta Housing
▪ Minimal City gap funding requested
▪ Massing meets City target for ~50 units while respecting neighborhood scale
▪ Strong focus on feasibility (tax credit analysis, open space calculations & more)
Further Council Direction Needed
▪ Parking Scenario: A, B, or C
▪ Unit Count and Bedroom Mix: consider target population needs ▪ Building Height: 4 – 7 Stories
13 STAFF RECOMMENDATION
Staff recommends City Council:
1) Direct staff to enter into an exclusive negotiating agreement with Alta Housing.
2) Provide preliminary direction to staff on key project components that will guide partner design focus for future development on this site related to:
A. Parking scenarios;
B. Unit count and bedroom mix; and
C. Building height.
14 Julia Knight
Principal Planner
[email protected]
(650) 838-2839
Potential Development Partners
(in alphabetical order)
16 Alta Housing
17 Lot T Discussion - Jan 21, 2025
We’re Alta Housing
Our mission: To create stronger, more diverse communities by providing and maintaining high-quality affordable housing where individuals and families thrive.
What we do:
● Develop and build affordable homes
● Manage properties
● Provide resident & supportive services
● Manage BMR housing programs for
Palo Alto & Stanford
Our Team
Randy Tsuda, CEO
Carlos Castellanos,
VP Real Estate
Marc Garcia, CFO
Stephanie Shipe, VP
Property Management
Sheryl Klein, COO
Ava Kuo, Senior
Project Manager
Adrianne Steichen,
Principal – PYATOK
Lenita Wheeler, VP Resident
Services
Wilton Court
● Pyatok/Alta have worked together for
20+ years
● Most recent project together Wilton
Court
● Fits nicely into the neighborhood
● Robust outreach to the community
Four Alta Communities Within Walking Distance
Barker Hotel (SROs)
Alma Place (SROs)
Webster Wood (family apts)
Oak Court (family apts)
Robust Resident Services Programs
Wellness Navigation Pilot Program
$750,000 grant from Silicon Valley
Community Foundation
Funding will provide trained counselors
to help Alta’s Palo Alto residents access
medical, dental and other community
resources
Thank You.
MidPen Housing
26 Building Communities. Changing Lives.
Creating New Homes Through Partnership
Alma Point, Foster City
Kiku Crossing, Downtown San Mateo Shirley Chisholm Village, San Francisco's Sunset District Proven Track Record Securing State, Regional,
and Private Resources
31 SCENARIO SUMMARY
Parking
Scenario Developer Total Units
Average
Unit Size
(SF)
Parking
Stalls
Total
Stories
Cost per
Unit
City Gap
per Unit
Total
Development
Cost
Total City
Gap
A
Alta Housing 54 790 27 5 $1.03 million $77,000 $55.3 million $4.1 million MidPen
Housing 73 765 36 7 $889,000 $139,000 S64.8 million $10.1 million B
Alta Housing 57 716 52 7 $1.23 million $73,000 $70.1 million $4.2 million MidPen
Housing 61 766 62 7 $954,000 $155,000 $58.2 million $9.4 million C
Alta Housing 47 716 0 4 $979,000 $88,000 $46.0 million $4.1 million MidPen
Housing 77 773 5 7 $860,000 $132,000 $66.2 million $10.2 million Note: Please see staff report for further details and analysis. 32