- City Council
City Council - April 14, 2025
The council voted 5-2 to advance a 274-space downtown garage with land reserved for future affordable housing and approved 10 condominiums.

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Council advances six-level garage with space reserved for future housing

375 Hamilton Avenue, Palo Alto, CA
The City Council voted 5-2 to advance a six-level, 274-space parking garage at 375 Hamilton Avenue, directing staff to begin preliminary design and environmental review. The selected Option 1A reserves a separately accessed area along Waverley Street for future affordable housing, conceptually estimated at 15 units.
The option is described as providing 163 net new parking stalls. Mayor Ed Lauing moved the staff recommendation, arguing that it balanced replacement parking with a long-term affordable-housing opportunity. Other supporters favored the Waverley-facing housing area because of its separate circulation, visibility, security and potential livability.
Two council members preferred a parking-only alternative that would provide more spaces at a lower cost per stall. They also questioned proceeding before the city has a full project cost and financing plan. Public comments were mixed, with speakers urging the city to prioritize housing and questioning the addition of more parking.
The project has an existing budget of $17.6 million, while agenda materials listed a preliminary garage construction estimate of $23,078,776 for Option 1A. Staff cautioned that the estimate covered direct construction for comparison purposes and excluded substantial project costs. The city has approximately $15 million in its parking in-lieu fund, and staff will develop fuller cost and financing information in later phases.
Ten-home Encina Avenue project wins unanimous approval

70 Encina Avenue, Palo Alto, CA
The council voted 7-0 to approve entitlements for a three-story, 10-unit condominium project at 70 Encina Avenue. The action rezoned the property from Community Commercial to Planned Community/Planned Home zoning and approved the Record of Land Use Action after considering a state environmental-review consistency checklist.
The 19,035-square-foot development will include two deed-restricted, below-market-rate ownership units for households earning 80% of area median income and 16 parking spaces. It received exceptions allowing a floor-area ratio of 1.57 rather than 1.25, lot coverage of 58% rather than 50%, and a rear setback of 7 inches where 10 feet would otherwise be required.
Supporters emphasized the addition of family-sized ownership housing near transit, shopping, jobs and services. Opponents sought a delay or denial so the property could be considered with a potential larger housing development at the adjacent Town and Country Shopping Center, while also raising concerns about density, trees, landscaping, open space and parking. The Planning and Transportation Commission had split 3-3 on the project, while the Architectural Review Board recommended approval.
The applicant had reduced the project from an earlier five-story proposal following council feedback. During the latest discussion, the potential Town and Country redevelopment was treated as too speculative to prevent a decision on the pending application. Council members also expressed interest in a future review of the city's Planned Community/Planned Home zoning framework.
Fair Chance housing ordinance goes to committee instead of advancing
The council unanimously referred a proposed Fair Chance in Housing ordinance to the Policy and Services Committee rather than adopting it on first reading as staff had recommended. The 7-0 referral sends the rental-screening rules back for further analysis and refinement.
The draft would require landlords to make a conditional housing offer before reviewing criminal history, conduct an individualized assessment before taking adverse action, consider mitigating or corrective information, and provide written reasons for a denial. It proposed a two-year criminal-history lookback measured from the sentencing date.
Council members sought more analysis of whether the lookback should begin at sentencing or release from incarceration, the appropriate duration, how serious or violent offenses should be treated and whether single-family-home rentals should be exempt. A housing advocate supported the ordinance and requested city resources for enforcement, while an apartment-association representative argued that it would duplicate state protections. The committee and city staff will work through those issues before the proposal returns to the council.
Council adds $4 million to utility work contract and approves service agreements
As part of a unanimous 7-0 consent-calendar vote, the council approved a $4 million increase to the city's contract with MP Nexlevel of California for substructure, trenching and conduit work. The change raises the contract's total not-to-exceed amount to $15,347,390 and extends it through Aug. 31, 2025.
The council also approved a five-year, $2,344,573 utility bill printing and mailing contract with InfoSend that is expected to save approximately $200,000 annually, along with a five-year, $658,390 preschool and toddler program contract with Martina Entriken. Other approvals included a workers' compensation administration contract with Sedgwick Claims Management Services for up to $612,840 through June 30, 2025, and a $100,000 amendment raising a Permanente Medical Group occupational-health contract to $150,000 through June 14, 2026.
Primary sources
Watch the meeting on YouTube · Read the official meeting packet