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The developers behind the Springline and Middle Plaza developments in Menlo Park are following their agreements with the city, the planning commission determined during its April 28 meeting.
The commission found that the Springline development by Presidio Bay Ventures and the Middle Plaza development by Stanford University are in compliance with their respective agreements signed by the developers.
The agreements provide the city and residents with additional funds and amenities and provide guarantees and exemptions to the developers. Presidio Bay was allowed to construct an additional 112,108 square feet of residential and commercial spaces and Stanford received guaranteed approval due to the agreement.
Presidio Bay guaranteed $83,700 in sales tax revenue for the city annually, adjusted for inflation, starting two years after occupancy starts. This guarantee started on Aug. 2, 2024, and ends when the development agreement ends on March 9, 2027.
City staff set the guarantee based on the citywide average sales tax per square foot of retail space. Springline is expected to generate over $100,000 in sales tax for the city. City staff hoped the incentive would encourage Presidio Bay to rent retail space to quality businesses.
Presidio Bay made $2.4 million in payments to various city funds, built 20 below-market-rate units, built and operated a dog park open to the public, and advertised a coworking space to members of the public.
Stanford’s agreement required it to build eight BMR units and have open space available to the public, which staff say the university has done.
Stanford also is required to fund 50% of the cost to build a train crossing near the development up to $5 million. The city is still working on the new crossing and Stanford is not required to pay until the city has finished the approval process.
Stanford, which as a university is not required to pay any property tax, agreed to pay $1.5 million to the Menlo Park City School District’s foundation.
If Stanford’s share of the cost of the crossing is less than $5 million, it will need to contribute an additional $1 million to the foundation. City staff believe it will not need to make the extra contribution.
