The ongoing tussle between the City of Mountain View and developers Greystar and MetLife over a $350 million redevelopment project on the site of a historic Chase Bank building has been marked by legal threats and tense city council deliberations. As reported by the San Jose Spotlight, a contentious disagreement arose over the timeline for the commencement of construction in a November 18th meeting, with the developer pushing for an eight-year extension.
Despite a general agreement that the project, which includes 299 new apartment units, ground-floor retail, and a Chase branch, brings much-needed housing to the area, specifics of the timeline have thrown a spanner in the works. Mayor Ellen Kamei, after a brief recess during which she received a legal threat from Greystar, reported on the developer's dissatisfaction with the unfolding proceedings. Greystar's attorney expressed concerns about financing difficulties under short timelines, given an unpredictable market landscape, according to the Business Journals.
Mountain View City Council, however, stood firm on the original agreement, approving the project plan as recommended by city staff with a 6-1 vote, but denying the eight-year extension. In their view, the requested timeline amounted to land banking, according to the councilmembers, a notion they believe contradicts the urgency of meeting housing demands in the area. As outlined in the city's general plan, Mountain View aims to increase the number of housing units by 11,000 by 2031.
The developer's request for a timeline extension is not only a point of contention due to fears of land banking, but also as a concern for cost management. City staff reported that Greystar failed to demonstrate how an extended timeline would lower the cost of constructing affordable housing. In fact, they suggested it might lead to cost increases, especially with an artificial deadline looming, Plume explained. Silicon Valley at Home, an affordable housing coalition, noted that Mountain View had accomplished 23% of its housing goal set for 2031 by the end of December 2024.
In conclusion, although the development may not be as fast-paced as some would like, the council did compromise by crediting Greystar over $1 million towards community benefits for the public amenities provided in the project. The legal threat from Greystar introduced a dose of drama into the already complex issue, with Mayor Ellen Kamei stating in a San Jose Spotlight report that she had "never in all my time on the Planning Commission or on council have I ever experienced anything like this." The stage is set for a continued debate over the balance between preservation, development, and the timely provision of new housing in Mountain View's future.
