Bohannon Properties has backed off its attempt to sidestep a full environmental review for its massive overhaul of the Hillsdale Shopping Center, withdrawing its challenge to San Mateo city staff's determination that the project needs a more extensive look before it can move forward. The developer confirmed the withdrawal on October 27, after the city determined that a project-level Environmental Impact Report was the most appropriate level of review under state environmental law.
According to the San Mateo Daily Journal, Bohannon Properties had been negotiating with the city since June over how to proceed under the California Environmental Quality Act, hoping to rely on Section 15183, a provision that allows developers to use targeted technical studies to address project impacts not already covered by a general plan's environmental review. The developer had maintained that San Mateo's 2040 General Plan review already covered most of the impacts tied to the Hillsdale project. But the city's own determination, issued June 30, 2026, found otherwise, concluding that a project-level Environmental Impact Report appeared to be the most appropriate level of review.
Why the City Said No to a Shortcut
The City of San Mateo's determination letter laid out several reasons the Hillsdale proposal couldn't qualify for the Section 15183 exemption. Flexible uses planned for two blocks, identified as C5 and S2, could produce as many as four different development scenarios, according to the City of San Mateo's determination letter, which made it impossible for staff to treat the project as sufficiently defined for expedited review. The city also found that proposed commercial and office space would generate between 3,500 and 4,500 jobs, a figure that exceeds what was studied in the General Plan EIR.
Staff further determined that the developer's submitted Water Master Plan fell short of the water-assessment analysis required under state law for projects of this size, which triggers extra scrutiny once a proposal exceeds 500 housing units or 500,000 square feet of commercial space. The city also flagged that several proposed buildings would reach 10 stories, taller than what the General Plan allows, and estimated that the project's phasing plan would likely take at least 15 years to reach full buildout.
Per the Daily Journal's reporting, technical analyses tied to the project also revealed noise levels exceeding the allowed limit at the site. Bohannon Properties ultimately determined that an exemption under Section 15183 was not a viable path given those projected noise levels, the paper reported, though the developer has said it had not received all internal technical study results and that some studies may still be outstanding.
A 3-Million-Square-Foot Overhaul South of 31st Avenue
The scale of what's being proposed explains why the environmental-review fight matters. The redevelopment calls for demolishing the current mall south of 31st Avenue and replacing it with a mix of office, retail and multi-unit housing, totaling more than 3 million square feet, according to the Daily Journal. City project materials describe up to 1,670 residential units across up to 2,390,800 gross square feet of new residential space, alongside up to 2,059,000 gross square feet of new commercial development, per the city's Hillsdale Mall Redevelopment project page.
The formal planning application was submitted June 23, 2025, and was deemed complete by the city on June 1, 2026, according to the city's project materials. David Bohannon has said the developer and city have discussed the project and are aligned, the Daily Journal reported.
Housing Stakes and a City Council Race
The project carries weight beyond its own footprint. San Mateo must accommodate 7,015 new housing units between 2023 and 2031 under the state's regional housing needs allocation, and the Hillsdale redevelopment is expected to satisfy about 20 percent of that requirement, according to the Daily Journal. The project is expected to take over a decade to build out, with a completion goal of around 2040.
The environmental review has also become a point of concern for some San Mateo residents, who submitted comments before the developer's formal withdrawal. Dana Yates, a Checkpoint Hillsdale board member and a candidate for the District 5 City Council seat, said residents are pleased with the developer's decision to withdraw its challenge, but that community members still need to stay engaged. Yates said she hopes the developer is listening to residents and inviting them to participate going forward.
