ARB backs 10-unit Encina Avenue condo project and urges broader rezoning of Town & Country parking area

The Palo Alto Architectural Review Board on Thursday recommended approval of a proposed three-story, 22,355-square-foot condominium building with 10 units at 70 Encina Avenue and separately urged City Council to consider rezoning the adjacent North parking lot area for residential use.

On the project before the board, members voted 5-0 to recommend approval to City Council of the applicant's request to rezone the subject parcels to a planned community/planned home zoning and to allow demolition of an existing surface parking lot for the new building, which would include two below-market-rate units.

Separately, after extended public testimony and debate, the board voted 4-1 to recommend that City Council consider rezoning the larger North parking lot area around Town & Country Village for residential development. Board Member Hirsch cast the lone no vote on that second recommendation.

Project planner Emily Callas said the building would provide 10 condominium units, two of them affordable, and summarized requested exceptions from standard zoning: a proposed floor-area ratio of roughly 1.7 where 1.25 is allowed; approximately 58% lot coverage where 50% is allowed; a rear-yard setback of 0 feet 7 inches where 10 feet would normally be required; and usable open-space figures that range from 79 to 155 square feet per unit where 150 square feet is typically required per unit. Callas said the project was evaluated under CEQA streamlining provisions (Guideline 15183) as consistent with the city's general plan environmental analysis.

Public comment included a statement from Dean Rubinson of Ellis Partners, which leases much of the Town & Country north lot, who said his firm is exploring a broader housing project across the larger parking area and encouraged coordination among owners; he said Ellis Partners may be ready to submit a larger application in the coming months. A separate commenter, Herb Boroch, raised legal concerns about the use of the planned-home zoning process and argued the environmental review was incomplete; staff responded that the planned-community zoning process remains in the code and CEQA streamlining under 15183 was applied.

Owner and applicant Edward Storm and his architect, Ken Hayes, told the board they had invested multiple years and significant funds developing the current 10-unit application and warned that further delay could threaten the project's viability. Storm said he had discussed potential coordination with Ellis Partners but said he could not allow his application to be held hostage by a larger, as-yet-unfiled proposal.

After lengthy discussion the board split its response into two recorded recommendations: a unanimous recommendation (5-0) that the council approve the subject rezoning and project, and a separate recommendation (4-1) that council consider rezoning the broader North parking lot area to enable larger-scale housing, a proposal board members said should be pursued through council-level policy and coordination with property owners.

"We believe there is potential for a larger, coordinated housing solution on that parking lot," said Board Member Balte during deliberations. "But that is a council-level land-use decision and, if the council wants to explore it, they should direct staff to work with the property owners and potential applicants."

The board's action forwards the ARB's design findings and the two recommendations to City Council and staff. Council will review the rezoning, environmental and design record as part of its public hearing process.