Jose Andrés' Palo Alto restaurant dreams face gas ban hurdles: Stanford Shopping Center owner considers legal action

Jose Andrés' Palo Alto restaurant dreams face gas ban hurdles: Stanford Shopping Center owner considers legal action
Nina Singh-Hudson
Published on May 10, 2023

World-renowned chef José Andrés' plans to open a restaurant at Stanford Shopping Center are threatened by a gas ban, with the property owner mulling legal action against Palo Alto.

When José Andrés set his sights on Palo Alto's Stanford Shopping Center for his restaurant concept Zaytinya, which relies on traditional cooking methods using gas appliances, he probably didn't anticipate that a gas ban would jeopardize his aspirations, but here we are, where reality sometimes mirrors fiction, and now the property owner, Simon Property Group (SPG) is considering taking legal action against the city over this ban that threatens to put the brakes on business plans revolving around Andrés' distinctive culinary offerings.

How did we get here? It's worth taking a step back for a moment, as in November 2019 SPG filed an application to construct three new buildings at the former Macy's Men's store site, when the city hadn't yet revised its building code to ban natural gas connections in all new buildings. However, the city has since indicated that because a permit has not yet been acquired for the José Andrés-connected building, known as Building EE, the construction cannot link up to an already-installed gas line designed specifically for the structure, causing a significant disconnect between the planned reality and the city's current position.

In an attorney-authored letter, SPG states its conviction that "the enforcement of the new reach code in this context is legally defective and unconstitutional," further declaring readiness "to take all actions necessary to enforce its legal rights to employ gas facilities with Building EE". This letter has sparked debates and discussions left, right, and center with city officials and SPG representatives remaining locked in disagreement over the crucial gas connection issue that poses a significant hurdle for Andrés' culinary vision.

Around the same time, the gas ban debate has been heating up in other cities across the Bay Area considering phasing out gas appliances in favor of electrical ones, albeit in a gradual manner, following the Bay Area Air Quality Management District's adoption of new rules that will see the region become the first to prohibit the sale and installation of new gas appliances. However, while many proponents of the rules are excited by their potential to pave the way for a more sustainable future, others remain concerned about their impact on consumers, especially those whose pockets won't stretch far enough for future equipment replacement costs.

Palo Alto City Council member Vicki Veenker, enthusiastic about the new rules, highlighted health and environmental benefits, suggesting that potential concerns are not definitive reasons against implementation, but rather factors to be considered in executing them appropriately and effectively reported on by Palo Alto Online. In contrast, San Mateo County Supervisor Ray Mueller, who abstained from the otherwise unanimous vote, stressed the importance of recognizing the costs associated with switching to electric appliances and the current market's insufficient supply to meet the potentially increasing demand for such products.

A wildcard in the electrification debate is, of course, the reliability of the electrical grid, spearheaded by PG&E, a company whose recent track record falls short in many Californians' eyes, and the need for PG&E's infrastructure improvement, among other issues like effective communication regarding electric equipment's potential for future success, as noted by many Palo Alto residents.

With the City Council and city officials reaffirming the city's position on potential gas use in Building EE, the future of José Andrés' Zaytinya and other gas-dependent establishments remains uncertain. Local efforts to transition to electrification, such as streamlined approval processes and on-bill financing for heat pump water heaters, may prepare residents for the new air district rules when they take effect in 2027, but the course of the ongoing gas ban battle and its effects on Andrés' restaurant plans and beyond are yet to unfold.