Two 156 Cal Ave. Development Options Now Available For Council Review
Published on May 07, 2026
TWO 156 CALIFORNIA AVENUE HOUSING DEVELOPMENT OPTIONS NOW AVAILABLE FOR COUNCIL REVIEW
A new option being considered reduces the tallest building from 17 stories to 14 with both options adding housing and retail vibrancy on California Avenue
PALO ALTO, CALIF. – The City announced today a public discussion on May 18, 2026, to inform the Council’s consideration of now two mixed-use housing project options at 156 California Avenue.
Following submittal of a Builders Remedy application for three-tower mixed-use development at 156 California Avenue, the Palo Alto City Council authorized an ad hoc committee to negotiate with the developer to resolve legal disputes and a possible alternative path forward. As a Builder’s Remedy application, the tools available to the City are strictly limited. The Council Ad Hoc’s work with the developer resulted in an alternative project option, which the Council will publicly review at an upcoming Council meeting, pursuant to a Council-authorized agreement with Redco Development. The agreement does not predetermine any Council action or project outcome.
“The state’s Builder Remedy law provides authority to a developer for massive height and density without local control. But we asked Mike Stone and his developer to work with us to create a better project,” said Ed Lauing, Palo Alto council member and member of the Council Ad Hoc Committee. “Our ad hoc worked every possible issue with them which resulted in the new option we recommend for council consideration. Notably, the tower height is reduced by 30 feet and affordable housing remains a priority.”
The agreement outlines key aspects of a refined mixed-use multifamily housing project that reduces the tallest building from 17 stories to 14 stories. Tower heights and building scale include a 12-story tower (124 feet), a 14-story tower (144 feet), and a 12-story tower (129 feet), 50 affordable housing units, $14.1 million in impact fees, with the majority of the $2 million in public art impact fees to be paid into the City’s Affordable Housing fund. A new two-level Mollie Stone’s Market would front California Avenue. The agreement also summarizes required public processes and streamlined review by the Architectural Review Board and Council consideration. The City anticipates Council action on an accelerated timeline. AB 130 CEQA exemption and streamlining apply.
To advance the alternative project, the City Council would need to add the Cambridge Avenue property to the Housing Element Sites Inventory. If the Council chooses not to add the property, the existing development application could continue as submitted. The original Builders Remedy application includes a 17 story (177 feet) residential tower, an 11 story (120 feet) residential tower, and a 7 story (77 feet) mixed use building containing 382 residential units, including 77 units income restricted at 80% AMI, a new 15,000 square foot Mollie Stone’s Market and other retail, and $15.8 million in impact fees. No office uses are proposed.
“Through collaborative engagement with the City Council Ad Hoc and staff, we’ve presented an alternative option for Council consideration,” said Chris Freise, Redco Development managing partner. “Regardless of the outcome of the Council decision point, we’ve agreed together on a set of steps to expeditiously process a future development at this site for the proposed project or this alternative option. The alternative option was possible due to City's proactive approach with us and I would like to thank them for that effort"
Both development options include 15,000-square-foot retails space for Mollie Stone’s Market. Mollie Stone's started in 1986 and has 8 locations. The Palo Alto store was its 3rd store and opened in 1990.
“Mollie Stone’s Markets began in 1986 and this year we are celebrating 40 years serving the Bay Area,” said Mike Stone, owner of Mollie Stone’s Market. “We are honored to be a part of this exciting new chapter in Palo Alto with a new, state of the art, Mollie Stone's Grocery store. This development reflects a long-term commitment to the community -- creating a place that brings people together, supports local businesses and delivers value for years to come"
The meeting materials for this public discussion will be released on May 7, 2026, and include a summary of key agreement terms, a comparison of the two project options, expected timelines and possible next steps based on Council’s discussion and possible action on May 18, 2026. Existing timelines on the initial project application will be paused while Council considers the options being presented.
The proposed project at 156 California Avenue includes two lots (1.14 acres + 0.29 acres) at California Avenue and Park Boulevard, and Park Avenue and Cambridge Avenue, with the existing uses including a parking lot and Mollie Stone’s grocery store. The options under consideration would redevelop these lots through a mixed-use multifamily project.
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Sent By:
Meghan Horrigan-Taylor
Chief Communications Officer
City Manager's Office
Office Phone: (650) 329-2607
Email: Meghan.Horrigan-Taylor@paloalto.gov