CITY COUNCIL
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Planning and Development Services
Meeting Date: June 1, 2026
Report #: 2605-6333
TITLE
Approval of an Extension to Building Permit 18000-00536 for 429 University Ave; CEQA status – Mitigated Negative Declaration (ENV20718).
RECOMMENDATION
Staff recommends the City Council approve an extension to building permit 18000-00536 for a term of three months, with additional three-month extensions not to exceed a total of 18 months to March 31, 2027.
BACKGROUND
In March 2017, Bellomo Architects on behalf of Kipling Post LP received the City’s approval to demolish two one-story commercial structures at 425 and 429 University Ave and construct a four-story mixed-use building. Demolition was completed in July 2019, and construction permit 18000-00526 was issued for the new building, comprising of two levels of below-grade parking (18,124 sq ft), commercial space (18,305 sq ft), and three residential units (6,740 sq ft).
The Chief Building Official authorized three 180-day extensions (September 2022, May 2023, January 2024) per Palo Alto Municipal Code 16.04.130, and 141 inspections were completed between 2019 and 2023. In May 2023, the property owner requested a transfer to an owner- builder permit and disclosed to the City a dispute and litigation case with the contractor firm. In June 2024, Council approved further extensions to the property owner, with conditions on the property remaining compliant with City code1. These conditions included planting trees on Kipling Street, removing caution tape and cones surrounding the building.
Based on Palo Alto Municipal Code Section 16.04.130, the code provides that “the Chief Building Official is authorized to grant no more than three extensions and reactivations of 1 June 16, 2024, City Council staff report agenda item 21 is available online at:
https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=6490&dbid=0&repo=PaloAlto&searchid=4093ed05- d487-4759-bfbc-5db9052026d1
permits, for periods of no more than 180 days each and may require that construction documents be revised to partially or fully to comply with current codes and ordinances; and payment of fees. Extensions and reactivations shall be requested in writing and justifiable cause demonstrated. Additional extensions or reactivations beyond three may only be granted with the approval of the City Council.” Additionally, Palo Alto Municipal Code 16.04.130 creates California Building Code (CBC) section 105.5.1 which establishes a term limit for permits in that “all work associated with a building permit must be completed and a final inspection issued within 48 months of permit issuance. Once that term limit is exhausted without an approved final inspection, the permit automatically becomes void.” As such, the owner has exhausted all administrative extensions, requiring Council approval for any further extensions
ANALYSIS
The property owner anticipates that the litigation process will conclude by December 2026.
Construction is expected to commence in January 2027 and is projected to take six to eight months to complete. Staff recommends that future extensions be granted in three-month increments, so construction could begin earlier if litigation concludes sooner, and staff expects to maintain contact with the property owner to initiate construction promptly upon the resolution.
As construction of the project is near 90% completion and the property owner has in good faith continued to adhere to all City requirements, permits, and approvals, staff recommend that Council approve an additional three month-extension with up to five additional three-month extensions for a total not to exceed 18-months. The Chief Building Official will execute the extension(s). It is anticipated these extensions would allow the property owner time to resolve the construction dispute and reduce the administrative resources required to maintain the building permits.
Extending the building permit keeps it active and provides time to complete remaining and required construction work. Without the extension, the existing permit would become void and the owner would need to apply for a new permit, which would require building plan revisions to come into compliance with the California Building Standards Code in effect at the time of application. This may require modifications to portions of the building that have already been constructed, significantly extending the timeline before the property can be occupied. As this would not support timely completion and occupancy of the building, staff recommends approval of the building permit extension as described.
FISCAL/RESOURCE IMPACT
There is no fiscal impact. Any applicable fees will be determined by the Chief Building Official.
STAKEHOLDER ENGAGEMENT
Planning and Development Services staff have been engaged with the applicant to assist with construction progress at this location.
ENVIRONMENTAL REVIEW
The project at 429 University has been reviewed under CEQA and the City approved a mitigated negative declaration in March 2017 (ENV20718).
ATTACHMENTS
None.
APPROVED BY:
Jonathan Lait, Planning and Development Services Director