A seven-story apartment building proposed by Alliant Communities as viewed from University Avenue (December 2025)

Project Overview

The planning for the Project effectively kicked-off in mid-2024 when the City published a feasibility study for developing affordable housing on the City’s eight downtown parking lots, and city planning staff recommended the City consider using three downtown parking lots for at least 345 units of very low income housing. By the fall of 2026, the Project had grown intensely controversial and had spawned a citizen ballot initiative that would block the Project if not approved by voters. It is important to note that Menlo Park city councils have intentionally excluded residents from the City planning process since mid-2024.
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The Project is aggressively supported by the City Council and affordable housing advocates within and outside Menlo Park. It is also strongly opposed by residents and local business owners who believe it is impossible (a) to develop 345 units of affordable housing, (b) preserve enough of the existing 556 public parking spaces to protect the future economic health and overall appeal of Downtown (c) and accomplish both objectives without substantial City funding for public parking. In September 2026, an independent financial report confirmed that at least $19M of additional city funding or financing is required. There are good reasons to suspect this amount underestimates the likely funding gap. (More later)

Note 1: The City has already offered developers 5.8 acres of public land worth at least $55M to $60M thru a “no cost”, long term land lease.

Note 2: For over two years, the City has alleged effective parking management solutions could enable new households to share public parking spaces with downtown visitors and eliminate the need to replace all existing public spaces. There is no parking management plan.

Current Project Schedule (September 2026)

Measure P Ballot Initiative – November 3, 2026

The Measure P Ballot Initiative would require voter approval of any new “non-parking-related” developments on Downtown Menlo Park parking lots. (Note: The petition for the measure was signed in 2025 by more than 3000 registered Menlo Park Voters.) It does not prevent affordable housing from being developed on the eight existing parking lots. But it would require the City to propose ones that voters would approve.
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Learn More Here

What The City Can’t (Won’t) Tell You

• The downtown affordable housing project will greatly reduce public parking and harm residents, visitors and local businesses.
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• Voters cannot trust the Menlo Park City Council to fairly and competently represent them.
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• There are better options for meeting Menlo Park’s affordable housing obligations and protecting its Housing Element. (coming soon)
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• The City does NOT need to fund an expensive lawsuit if voters support Measure P. (coming soon)
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• The City is still facing a pending lawsuit if it attempts to declare Downton parking lots as “surplus land”. (coming soon)

Original Objectives (September 2024)

• Build at least 345 units of very low income* affordable housing on land now used for Parking Plazas 1, 2 and 3.
  * households make at most 50% of the San Mateo County average median income (AMI).
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• Replacement of public parking spaces.
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• Enhance the vitality of downtown Menlo Park.

Priorities & Requirements (September 2025)

The Project request for proposal (RFP) specified the following.

• Built at least 345 units of extremely low, very low and moderate income affordable housing.
  (Note: These households make 15% to 80% of San Mateo County average median income (AMI).)
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• Replace all 556 existing public parking spaces.
  (Note: some public parking spaces could be shared with affordable housing residents during “non-business” hours.)

Developer Project RFP Compliance Quadrant

• Neither developer submitted a proposal that meets the Project requirements and priorities.
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• While both include the full replacement of 556 existing public spaces, they require some kind of City subsidy or financing.
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• The actual amount of parking that would be available to the public at specific times is unknown as the City plans on using parking management new households to share them and still does not have a plan.
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• Downtown public parking will be severely reduced during the construction of the Project. That would greatly harm retail businesses and professional offices.
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• The City has no current plans for closing the existing funding gap. A consultant offered several potential solutions.

Additional Information

• City website – “Development on downtown parking lots” project web page
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• Developer proposals – Only three developers submitted proposals for the Project: Alliant Communities, Presidio Bay Ventures and Related CA-Alta. The City is not considering the Presidio Bay Ventures proposal, e.g., not enough affordable housing. Alliant Communities. Related CA – Alta. Presidio Bay Ventures
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• A detailed project events calendar (On the Save Downtown Menlo website).

About The Author

Dana Hendrickson is a Menlo Park community advocate who had published the Creating A More Vibrant Menlo Park blog on The Almanac Online from April 2014 until October 2026. It was discontinued when the publisher, the Embarcadero Media Foundation, required I stop covering the November 3, 2026 local elections. His investigative analyst reports focus on large city projects that have both significant potential benefits and drawbacks, complex issues and politically controversial trade-offs.

He has evaluated Caltrain grade separations, the El Camino Corridor Study, downtown parking garages, bike lanes on El Camino and Middle Avenue and the 600 block public plaza.