Mountain View developer reduces affordable homes in builder’s remedy project

Plans for a seven-story condominium development in Mountain View took an unexpected turn last week after the developer submitted a last-minute proposal to reduce the number of affordable homes for the project.

Community Development Director Christian Murdock held a Sept. 2 public hearing for a 216-condo project that is poised to replace 29 rent-controlled apartments on Gamel Way, a cul-du-sac located across the street from Castro and Mistral elementary schools.

Under state law, the project qualifies for a streamlined administrative review, one that does not require a City Council vote unless an appeal is filed. At the hearing, Murdock did not make a final decision to sign off on the project.

“I want additional time to consider the public comment provided today along with all of the written public comments I read before today’s hearing,” Murdock said. “State law has established a deadline of Sept. 8 for the city to act on this project. I anticipate that I will render my decision on that date.”

For the better part of a decade, Kevin DeNardi, of DeNardi Wang Homes, has been looking to build condos at 1919-1945 Gamel Way. Initially, DeNardi planned to construct a four-story condo development on the roughly 3.2-acre site, which the city council approved five years ago. Then in 2023, DeNardi submitted a new application for a seven-story project, nearly twice the size of the original.

The updated proposal was submitted at a time when Mountain View missed the deadline to get its housing element certified by the state. That opened the door for the plans to proceed as a builder’s remedy project. Under California law, builder’s remedy projects can skirt local zoning regulations and development standards, as long as a certain portion of the homes are affordable to lower-income households.

In 2023, DeNardi proposed to set aside 20% of the condos as affordable units to qualify as a builder’s remedy project. Since then, changes have been made to state law, lowering the requirement from 20% to 13%.

On Aug. 28, a few days before the hearing, DeNardi sent an email to the city stating his intention to include fewer affordable condos under the updated provisions of builder’s remedy.

“I understand this is not an ideal development late in the project,” DeNardi wrote. “However, this step is essential to ensure the project moves forward and delivers much needed housing in this high interest rates and high construction costs environment.”

The change results in 29 affordable condos, instead of the 44 previously proposed, according to the city staff report.

Community opposition

It was not just the cut to affordable homes that raised eyebrows at the meeting. The hearing was also notable for the large turnout of residents.

More than a dozen people showed up to oppose the condo development. Many voiced concerns that an influx of vehicles would contribute to traffic and parking congestion and pose safety hazards, particularly near the elementary schools. The project plans call for a parking garage for 252 vehicles.

Several commenters also raised concerns that the development was too big for the neighborhood and would overshadow existing one- and two-story homes and apartment buildings.

Others, however, said there was little the city could do legally to impose constraints on the project. Instead, they urged the developer to meet with residents to work together toward common goals.

“We want this to be the beginning of an ongoing conversation. We don’t want this to be a hit-and-run,” resident Marty Connor said. “We offer knowledge and insight into our neighborhood and how it functions.”

In response, DeNardi signaled a willingness to talk with people about their concerns, adding that he was born and raised in Mountain View and has seen a lot of changes over the years.

“I want to talk to you,” DeNardi said. “I’m open to continuing the discussion and listening to what you guys are saying.”

Ultimately, though, DeNardi said the project would benefit the community in the long run.

“This project provides a lot of the much-needed housing to help try to draw down the rental prices that we all experience in Mountain View,” DeNardi said.

He added that the project will provide other benefits, like relocation assistance for renters who will lose their homes in the redevelopment, as well as offering a “right of first refusal” for displaced tenants to return to a new condo.

The city will post a final decision about the project to the city website, likely on Sept. 8, according to Murdock. The decision can be appealed to the council within 10 calendar days of the date the applicant is notified by email or mail, he said.

Separately, the council will vote on the authorization of the sale of Gamel Way, a public street, to DeNardi. The sale of the street is necessary for the development to get built. Murdock did not say when the vote would occur. The terms and conditions of the sale are not publicly known.

This story originally appeared in the Mountain View Voice. Emily Margaretten joined the Mountain View Voice in 2023 as a reporter covering City Hall.