October 22, 2025 paloalto.gov
Study Session: Lot T
Design Update
Julia Knight, Planning Manager
1 AGENDA
• Location & Policy Context
• Study Session Purpose
• Past Direction
• Design Options
• City Contributions
• Project Timeline & Review Process
2 LOT T LOCATION
Lot T
Size
Approximately 20,000 SF
52 total parking spaces
Location
Corner of Kipling & Lytton
One block to University Ave
0.4 miles to Train Station
Neighborhood Scale
Mix of heights overall
Next to and across from 1-2
story historic structures
3 POLICY CONTEXT
Housing Element Program 1.4
• Redevelopment of City’s surface parking lots for affordable housing 2025 Council Priority Objective
• Advance affordable housing project on downtown surface parking lot (Lot T)
Regional Housing Needs Assessment
• 6,086 units planned for by 2031
• 582 total units permitted as of October 2025
• Includes 168 affordable (up to 120% AMI) units permitted; additional 130 affordable units at 3001 El Camino Real entitled
4 JANUARY 2025 DIRECTION
• Selected Alta Housing as the City’s non-profit partner • Asked staff to come back to Council with the following plan:
• Parking scenario A (resident parking only at ~0.5
spaces/unit)
• Up to a 7-story plan and to maximize the total units
maintaining the current ratio of family housing (~57%)
5 STUDY SESSION PURPOSE
• Present updated design options based on January direction • Compare updated design options to original design
• Seek Council feedback on preferred design option
• Highlight the anticipated application review process / timing
6 DESIGN OPTIONS
Two new design options developed since January
• Both increase height and unit count
• Both provide parking at ~0.5 spaces per unit
Main difference between the two new options:
• Inward-facing courtyard (more units, but more mass
along Kipling)
• Outward-facing courtyard (fewer units, but less mass
along Kipling)
7 OPTION COMPARISON TABLE
Option 1 Option 2 Option 3
Stories 5 6 6
Total Units 54 units 72 units 68 units
Courtyard
Orientation
Inward-Facing Inward-Facing Outward-Facing
Unit Mix 1-BR: 23
2-BR: 15
3-BR: 16
1-BR: 33
2-BR: 20
3-BR: 19
STUDIO: 10
1-BR: 20
2-BR: 19
3-BR: 19
Percent Family Units 57.4% (31 total) 54.2% (39 total) 55.9% (38 total) Approx. Parking
Spaces
27-31 spaces 30-34 spaces 29-34 spaces
Parking Ratio 0.5-0.57 spaces per unit 0.42-0.47 spaces per unit 0.43-0.5 spaces per unit Units facing interior
lot lines
2 units per residential floor
(8 units total)
3 units per residential floor
(15 units total)
7 units per residential floor
(35 units total)
Courtyard Lighting Mostly direct sunlight Mostly direct sunlight Mostly indirect sunlight 8
COST COMPARISONS
Scenario
Total
Development
Costs
Cost Per
Unit
City
Contribution
Per Unit
Total City
Contribution
Gap Financing
Needed
Option 1 $57.9 M $1.07 M $76,000 $4.1 M $2,034,000
Option 2 $78.3 M $1.09 M $76,000 $5.5 M $2,270,000
Option 3 $74 M $1.10 M $76,000 $5.2 M $2,648,000
• All costs increased to reflect increased funding uncertainty • Construction costs have been escalated to reflect delivery timeline • Options 2 and 3 are more expensive because they provide more units • City contribution based on per unit contribution supported in January • “Gap Financing Needed” reflects remainder after state tax credits, loans and city contribution; several options to address gap funding 9 CITY CONTRIBUTION
• Most likely in the form of a low-interest, long-term loan • Financial contribution is in addition to land contribution in the form or a long-term land lease
• Currently ~ $7.2-9.7M in available funds
• Development Agreement (DA) would set final contribution • City may wish to use some of these funds for other
affordable housing projects and/or housing services
10 PROJECT REVIEW PROCESS
• Streamlined Housing Development Project Review Process, as outlined in Palo Alto Municipal Code (PAMC) Section
18.77.073
• 1 Architecture Review Board (ARB) hearing
• Council hearing
• Requires high level of compliance with objective design standards
• Eligible for waivers and concessions from development standards under State Density Bonus Law
• Waivers and concessions will be determined once a formal application has been submitted
• Council to consider project and DA together
11 PROJECT TIMELINE
• November/December 2025: Community Meeting (hosted by
Alta)
• January 2026: Application Submission
• February/March 2026: ARB hearing
• April/May: Council decision (project & development
agreement)
12 KIPLING STREET AXON
Option 1
Option 2
Option 3
NOT TO SCALE
13 KIPLING STREET NORTH ELEVATION
Option 2
Option 3
NOT TO SCALE
14 Option 1
INTERIOR LOT LINE AXON
Option 1
Option 2
Option 3
NOT TO SCALE
15 GROUND LEVEL PLAN
Option 1
Option 2
Option 3
NOT TO SCALE
16 PODIUM LEVEL PLAN
Option 1
Option 2
Option 3
NOT TO SCALE
17 UPPER LEVEL PLANS
Option 1
Option 2
Option 3
NOT TO SCALE
18 CONTEXTUAL MASSING DIAGRAMS
Option 1
Option 2
Option 3
NOT TO SCALE
19 Study Session
• No formal action / motion
• Seeking Council feedback on design considerations
• Other comments
20 JULIA KNIGHT
Planning Manager
Planning & Development Services
[email protected]