City Council - August 17, 2026

San Antonio Road apartment project wins 7-0 approval

The City Council voted 7-0 to approve the major architectural review application for an eight-story, 228-apartment building at 762 San Antonio Road. The two-acre redevelopment would replace three commercial buildings and include 30 low-income units. The approval incorporated staff-recommended conditions, revisions to a utility-upgrade condition and additional language in the record of land-use action.

Staff processed the proposal under the builder’s remedy using objective standards from the El Camino Real Focus Area. The city’s environmental review relied on an addendum to a previously certified environmental impact report, with applicable mitigation measures remaining in effect.

Staff clarified that the project’s total housing production exceeds the Housing Element’s estimated capacity for two associated sites, although its number of low- and very-low-income units is below what the Housing Element had anticipated. Residents and council members also raised concerns about congestion, emergency access, transit, bicycle safety, construction labor standards and whether 228 secure bicycle spaces would be sufficient for a project with 341 bedrooms.

As part of the motion, the council directed staff to evaluate whether the San Antonio Road bicycle-lane initiative could be accelerated and to return with its findings. Staff had cautioned that the housing project is separate from the future corridor plan and could be built before the planned bicycle facilities are completed.

Split vote sends separate ADU sales rules back for review

The council voted 4-3 to direct staff to present the Planning and Transportation Commission with a streamlined ordinance allowing accessory dwelling units to be conveyed and sold separately. The commission’s recommendation must return to the council within 90 days.

The substitute motion displaced a proposal to adopt a broader package of accessory dwelling unit code changes. That package included state-law updates, a potential increase in the maximum ADU size from 1,000 to 1,200 square feet and provisions implementing AB 1033, which permits cities to allow separate, condominium-style ownership of ADUs.

Supporters described separate sales as a possible path to more affordable homeownership and favored a simple application process. Other council members raised concerns about privacy, floor-area rules, homeowner-association disputes, tenant impacts and the limited experience of other cities with separate ADU conveyance. The Planning and Transportation Commission had previously recommended taking no action until more regional information was available.

Council members also debated a proposed 600-foot neighborhood-notification requirement and the effect of development impact fees on ADUs larger than 750 square feet. Staff expects to return before the end of 2026 with broader citywide impact-fee work that includes ADUs.

Council expands electricity authority and funds facility electrification design

The council unanimously authorized the city manager or a designee to purchase or sell electricity and related services under approved master agreements. Each agreement may cover up to $125 million in aggregate transactions, with delivery terms of no more than 36 months and deliveries ending no later than December 2040. The resolution grants transaction authority rather than committing the city to a specific purchase.

The consent calendar also included a $298,716 contract with Salas O’Brien Engineers for professional design services supporting the electrification of city facilities. The contract runs through Aug. 24, 2029.

Overnight warming and cooling program gains up to 10 extra nights

The council unanimously expanded Palo Alto’s Overnight Warming/Cooling Location program for the upcoming season. Under the approved framework, the program may operate during Santa Clara County inclement-weather alerts and for up to 10 additional nights directed by the city.

A public commenter praised the expansion as additional support for vulnerable community members.

Primary sources

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