Council selects Alta Housing to negotiate exclusive agreement for 100% affordable Lot T project, directs resident‑only parking scenario and higher‑floor study
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Summary
Palo Alto’s City Council on Tuesday named Alta Housing as the preferred development partner for a proposed 100‑percent affordable housing project on city‑owned Lot T and directed staff and Alta to pursue a resident‑only on‑site parking approach while studying designs up to seven stories.
The Palo Alto City Council on Tuesday directed staff to enter exclusive negotiations with Alta Housing to develop a 100‑percent affordable project on Lot T (Kipling and Lytton), and gave preliminary design direction: favor on‑site resident parking only (staff’s “scenario A”), allow up to seven stories and seek to maximize total units while preserving a focus on family-sized units.
Why it matters: Lot T is a half‑acre city‑owned surface parking lot near University Avenue and Caltrain. The council’s action starts a public‑private partnership intended to deliver at least 50 affordable units as the first phase of a broader program to develop city land for affordable housing and meet the city’s Regional Housing Needs Assessment obligations.
Staff recommendation and proposals: Staff recommended Alta Housing based on its lower estimated local gap‑fund request across scenarios and Alta’s local track record. Both Alta and MidPen Housing submitted proposals and three parking scenarios: (A) on‑site resident parking only, (B) partial replacement of existing public parking on site plus resident parking, and (C) little or no on‑site parking. Staff and council discussed tradeoffs among costs, unit counts and neighborhood scale.
Council direction and rationale: After presentations and extended public comment, Council Member Stone moved, and Council Member (Rectal) seconded, a motion selecting Alta and directing staff to negotiate an exclusive agreement. The motion specified scenario A (resident on‑site parking only), asked Alta to return with plans up to seven stories that attempt to maximize unit count while emphasizing family‑sized units, and asked staff to advance the project while coordinating downtown replacement parking strategies where needed. The council approved the motion unanimously on a voice vote.
Public comment and risks: Business and retail groups urged the council not to remove public parking without adequate replacement plans and cited concerns about retail access during construction. Labor representatives asked for construction agreements that ensure prevailing wages and local hiring. Public commenters from neighborhood groups and seniors supported adding affordable housing downtown; some urged using Lot T specifically because it is a centrally located surface lot.
Why staff recommended Alta: Staff cited Alta’s lower proposed city gap across the three parking scenarios, Alta’s local experience in Palo Alto (several established Alta properties nearby) and Alta’s proposal balance between unit count and neighborhood scale. MidPen highlighted potential economies of scale and higher unit yield in its scenarios and requested staff consider simultaneous development across multiple downtown lots to reduce per‑unit costs.
Next steps: Staff will enter exclusive negotiations with Alta Housing to refine design, finance and parking solutions; Alta will return with development plans reflecting council direction for review and entitlement. Council members also asked staff to continue evaluating downtown parking replacement options and demand‑management measures, including Transit Demand Management programs and partnerships for low-cost transit passes for residents.
Speakers quoted in this article included staff, representatives of Alta Housing and MidPen Housing, downtown business representatives, union representatives and multiple council members. The council voted to authorize exclusive negotiations and provided the described design and parking guidance.
