Development Statement
May 16, 2025
Project Summary
As a local family with deep roots in Palo Alto spanning nearly 50 years, the Giovannotto family is proud to introduce Forest Commons, a thoughtfully designed 82-unit residential community located at 332 Forest Avenue in downtown Palo Alto.
Forest Commons presents a unique opportunity to deliver a substantial number of pedestrian - friendly, transit-oriented housing units on a scale that can make a real difference while enhancing the existing neighborhood fabric. A diverse mix of family-friendly unit types will be made available —as well as a significant number of below market rate housing units —attracting a wide range residents seeking a vibrant, walkable community with proximity to downtown services and abundant transit options. The project delivers significant community benefit s, including housing units not accounted for in the Housing Element, as well as 16 below market rate units (20%). Additionally, the development will further bolster the vitality of downtown and generate substantial new property tax revenue for the City.
This is the right site for new downtown housing, the property is strategically located less than a half- mile from the University Avenue Caltrain station and is only steps from downtown Palo Alto. For families, several local Elementary Schools, including Addison, are within walking distance, and our middle and high schools are within short biking distances . To support residents while minimizing any impact on street parking availability, the proposal includes a generous 1:1 parking ratio.
Constructed with a Type III wood structure over a Type I concrete podium, this project promises a high-quality and sustainable addition to Palo Alto's housing stock . Beyond walkability to City services and amenities, r esidents will enjoy modern on-site wellness amenities such as a well - equipped fitness center, welcoming community gathering space s, and access to the reimagined outdoor grounds of the adjacent ‘Casa Real’ property.
Architecturally, the project demonstrates contextual sensitivity at its core. I ts design draws inspiration from its surroundings, notably the prominent and architecturally significant Casa Real.
Respecting the neighborhood's scale, the design aligns with existing datum lines and maintains an 85-foot building height (plus parapet), which allows for it to achieve significant density without overwhelming the existing context. Additionally, the project will offer residents access to the combined amenities of both Forest Commons and Casa Real, fostering a richer living experience.
We are eager to collaborate with the City to deliver this vital housing project, enriching downtown Palo Alto’s vibrancy while honoring its character, embracing inclusivity, and advancing a forward- thinking vision.
Addressing The Need for Housing
Our review of the Housing Element reveals a recognized need for increased housing density near transit hubs. Within a half -mile radius of both Palo Alto Caltrain Station s, 24 identified sites are collectively planned to yield 346 housing units. This underscores the demand for additional housing in transit-oriented areas. Although Forest Commons was not specifically listed as an opportunity site, its realization would by itself contribute nearly one-quarter of the total housing units targeted for the downtown area, which is the most transit-oriented and pedestrian-friendly of all districts.
Due to the scarcity of underutilized sites in the downtown area, the Housing Element identifies only four potential units within RM-40 zoning—all designated for above moderate-income households.
This lack of viable sites is not limited to RM -40 zones. A significant majority of the opportunity sites near the Caltrain stations are also too small to support economically viable development. For example, Table 3-17 in the Housing Element highlights four representative sites averaging just 0.14 acres, with an average allocation of only 4.25 units.
Approving this project would represent a major stride toward achieving the City's stated housing goals. This infill project is a rare underutilized downtown site and will address Palo Alto’s pressing housing needs.
Density & Entitlements – The PHZ Process
The proposed project achieves a density of 143 units per acre to yield 82 new housing units . The site's current RM-40 zoning limits density to 40 units per acre, and thus requires a Planned Housing Zone (PHZ) application to realize this more appropriate density. Considering the property's existing land use and height context, we firmly believe that a density of 143 units per acre is both fitting and essential to meaningfully address Palo Alto's pressing housing needs.
As part of the PHZ application, we will ask the City consider the following adjustments to the current zoning:
Standard Zoning Proposed
Height 40’ 85’
Density 40 du/acre 143 du/acre
FAR 1 4.21
Unit to Parking Ratio 1:1.67 1:1.3
Open Space Coverage 20% 17%
Front Yard Setback 20’ Aligned with Casa Real
Existing Use
The existing 1925 building currently houses only 16 units and occupies a mere 27% of the lot. This leaves a significant portion of valuable land in Palo Alto's urban core underutilized. The existing building does not have a historic designation.
Major Project Benefits
• Catalyzes Major Investment and Redevelopment near CalTrain: Transforms underutilized property in a transit-proximate location.
• Prioritizes Pedestrian and Bicycle Connectivity: Creates a walkable and bikeable environment.
• Directly Addresses Palo Alto's Housing Needs: Provides crucial new units to meet community demands.
• Integrates 16 Dedicated Below Market Rate Housing Units: Fosters inclusivity and affordability within the community.
• Generates Significant Economic Stimulus: Injects vitality into the Palo Alto economy. • Harmonizes with Surrounding Commercial Character: Respects and complements the existing commercial landscape.
• Delivers Diverse, High-Quality Housing Options: Offers a range of residences near transit, employment hubs, and essential services.
• Elevates Community Sustainability and Energy Efficiency: Incorporates environmentally responsible design and operation.
Relevant Figure and Table from the 2023-2031 Palo Alto Housing Element