City Council - August 19, 2026

City reports 916 housing units permitted since 2023

Palo Alto reported that 916 housing units have been permitted since 2023, including 296 since January 2026. The State of the City address also placed 3,335 units in the development pipeline, with about half entitled. The council took no formal action on the address; the figures were presented as updates on existing work.

Planning and zoning analysis is underway for the San Antonio Road area, which contains 53 Housing Element sites with capacity for 1,559 units, including 614 lower-income units. The address said policy and zoning alternatives could accommodate 3,800 to 7,400 units at full buildout.

Several affordable-housing projects have also advanced. Project HomeKey opened in May and welcomed its first clients in June, offering 88 rooms and services for an estimated 200 people annually. Mitchell Park Place, a fully affordable development that includes deed-restricted homes for adults with intellectual and developmental disabilities, opened in May. An all-affordable 130-unit development at 3001 El Camino Real is under construction with $5 million in city housing funds.

A decision on the city's pro-housing designation application is expected by the end of 2026, and the city expects to seek proposals this winter for a fully affordable project near Matadero Creek. During public comment, a speaker urged partnerships with Stanford University and the venture-capital community to address housing while protecting existing neighborhoods.

Measure J is set for the November ballot as Cubberley plans advance

Palo Alto voters are set to consider Measure J in November. The proposed one-half-cent sales-tax increase is estimated to generate approximately $15.6 million annually.

In its update on Cubberley Community Center, the address said the council had previously reached a deal with the school board, adopted a conceptual master plan and placed Measure J on the ballot. The long-term initiative calls for acquisition, renovation and rehabilitation of a future community-center campus. Those actions occurred before the State of the City meeting, which included no new vote on the measure.

City outlines $397 million wastewater work and roughly $400 million grid plan

Palo Alto reported a $397 million capital-improvement program at the Regional Water Quality Control Plant, where initial upgrades are scheduled for completion in 2028. The plant continues to treat 20 million gallons of sewage daily while aging equipment and treatment systems are modernized.

The city also expects to invest approximately $400 million in electric-grid modernization over the next decade or more. A pilot covering 900 homes was completed in 2025, and work over the next five years is expected to focus on replacing older equipment and increasing capacity.

Adopted budget closes a projected $17.1 million deficit

The address said Palo Alto's adopted fiscal year 2027 operating budget closed a projected $17.1 million deficit. The records did not detail the measures used to close the gap.

The city's Public Safety Building was scheduled to open during the week of the address, consolidating the Police Department, Fire Administration and Office of Emergency Services. Fire Station 4 remains under reconstruction, with completion scheduled for June 2027 and emergency services continuing from a temporary station at Cubberley.

The Bryant Street Community Center formally reopened in June after a $1.3 million renovation that added accessibility improvements, increased occupancy, converted heating and cooling to electric service and created recreation, teen and dining spaces.

Temporary Churchill crossing closure remains off the table

The address revisited an earlier council direction not to pursue a temporary closure of Churchill Avenue at the train crossing, a proposal that had divided the community. The city plans to continue pursuing long-term safety solutions at all four Palo Alto rail crossings.

Commenter calls for a city role in Reach 2 flood talks

During public comment, a speaker characterized the Reach 2 flood-protection effort as stalled and asked the city to help Valley Water and a JPA working group clarify their roles and advance negotiations. The project concerns flood protection for Crescent Park and Midtown near 101. The records show no formal council action on the request.

Primary sources

Watch the meeting on YouTube · Read the official meeting packet